Japan Average Land Price Logs 1st Drop in 6 Years

Politics

Tokyo, March 23 (Jiji Press)--The average land price in Japan as of Jan. 1 fell 0.5 pct from a year before, marking the first drop in six years amid the novel coronavirus epidemic, land ministry data showed Tuesday.

Although land prices had risen thanks to an increase in visitors to Japan, demand for land to build stores and hotels plunged as the coronavirus spread.

The coronavirus crisis especially dampened land prices in tourism spots and downtown areas, which have many restaurants.

Residential land prices fell 0.4 pct on average, the first decline in five years. Growth was spotted only in some areas, such as city centers with upscale real estate and suburban areas with convenient public transport services.

Commercial land prices declined 0.8 pct, the first fall in seven years. Many areas saw land prices fall, while prices rose in some suburban areas with commercial facilities for daily shopping.

[Copyright The Jiji Press, Ltd.]

Jiji Press