Japan Commercial Land Prices Post Bigger Drop in 2021

Economy Politics

Tokyo, Sept. 21 (Jiji Press)--The average land price in commercial districts in Japan as of July 1 fell 0.5 pct from a year earlier, bigger than the 0.3 pct drop in the previous year, due to impacts of the prolonged novel coronavirus pandemic, the land ministry said Tuesday.

The decline reflected falling demand for store openings in bustling shopping districts, as well as at tourist destinations, which had benefited greatly from an influx of foreign visitors before the pandemic.

Overall land prices slipped 0.4 pct on average, down for the second straight year, according to the results of the annual land price surveys conducted by prefectural governments. The size of decline shrank from the previous year's 0.6 pct.

Residential land prices were down 0.5 pct on average, smaller than the decline of 0.7 pct in 2020. The result is believed to be partly due to demand for moving into bigger houses in suburban areas amid the pandemic, an official of the ministry said.

Meanwhile, the average price of land in industrial areas rose 0.8 pct, larger than the 2020 increase of 0.2 pct and up for the fourth straight year, backed by higher demand for land plots for large logistics facilities thanks to the growing popularity of online shopping amid the COVID-19 crisis.

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Jiji Press