Clean land in an area in Japan (illustrative/image bank)
O average land price in Japan jumped to the highest value in more than three decades.
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A change continues in a gradual recovery from the long period of stagnation that followed the bubble-era economy.
The Ministry of Land said on Tuesday (26) that the average price of land in Japan in 2024 increased by 2.3% year by year. The number is based on a survey involving around 26,000 residential, commercial and other locations carried out on January 1st.
Land prices in Japan rose dramatically in double-digit percentages in the final years of the bubble, which burst in 1991. What followed was a prolonged era of deflation and losses.
Analysts say one factor in the recovery is the resumption of economic activity after the initial shock of the coronavirus pandemic. They also give merit to the increase in foreign tourismwhich they say is driving demand into the real estate market for restaurant and hotel operators.
Takeshi Ide is a senior researcher at real estate research firm Tokyo Kantei. He says there is a great disparity between areas that are enjoying a rise in land prices and areas that are experiencing a decline.
“More people are moving to Tokyo again and also heading to big cities like Osaka, Nagoya and Fukuoka. The disparity between cities that have excellent public transport and convenience and those that do not is also increasing.”
Ide says the weaker yen is also increasing prices in tourist destinations. Most areas that saw the steepest price increases They are tourist cities.
The exchange rate variation increased purchasing power of buyers from abroad.
Foreigners are capitalizing on this when purchasing holiday homes in areas with easy access to leisure activities and this is driving demand for land in selected locations away from major cities.
Fonte: NHK
