Japan's Land Price Surge: Fastest Growth in Over Three Decades

In 2024, Japan's land prices soared at the swiftest rate in 34 years, driven by economic recovery and increased tourism. The nationwide average showed a 2.7% rise, the fastest since 1991. Continuous gains were noted in both residential and commercial sectors, with hotspots in tourist and redevelopment areas.

Land prices in Japan are climbing at a rate not seen in over three decades, according to a government survey released on Tuesday. The 2024 data reveals a 2.7% increase in land values as of January 1, marking the fourth consecutive year of growth across both residential and commercial sectors.

Contributing factors to this rise include a booming tourism industry, with demand for hotels and shops leading the charge. However, concerns loom over rising construction costs and anticipated interest rate hikes, which could potentially slow the upward trend.

Notably, residential land prices were up by 2.1%, spurred by housing demand in low-interest areas, while commercial land prices saw a 3.9% increase. Industrial land prices also rose, supported by logistics developments for e-commerce, reflecting a robust overall growth in the nation's property market.

(With inputs from agencies.)