Japan's average land prices rise for first time since pre-pandemic: government

Japan’s average land prices rise for first time since pre-pandemic: government

A construction site in a residential area in Tokyo, Japan, August 21, 2016. Photo taken August 21, 2016. REUTERS/Kim Kyung-Hoon

Register now and get FREE unlimited access to Reuters.com

  • Land prices in the country +0.3% per year until July 1; first growth since 2019
  • Building land prices +0.1% vs. -0.5% in the previous year
  • Commercial land prices +0.5% vs. -0.5% in the previous year
  • TSMC Plant Region Records Biggest Growth Among 21,431 Locations Surveyed

TOKYO, Sep 20 (Reuters) – Land prices in Japan rose in the 12 months to July 1 for the first time since the start of the pandemic, thanks to the easing of COVID-19 measures, an annual survey by the Ministry of Lands showed on Tuesday.

The data revealed the ongoing harm that border controls are doing to Japan’s tourism industry as the government signals a further reopening to attract foreign visitors. read more

Overall property prices in the world’s third largest economy were 0.3% higher on July 1 from a year earlier, after declining 0.4% in the year to July 1, 2021 and falling 0.6% in the 12 months to this, the study says. showed.

Register now and get FREE unlimited access to Reuters.com

“Last year’s drop was mainly due to the impact of the pandemic, and land prices have rebounded this time around,” a spokesman for the land ministry said at a media briefing.

The survey showed that residential land prices, which had fallen over the previous 31 years, rose marginally by 0.1% in the 12 months to July 1 after declining by 0.5% a year earlier. Japan’s aging and declining population has led to a long-term decline in residential land values.

Commercial property prices rose faster at 0.5%, according to the survey, reversing a 0.5% year-over-year drop thanks to a recovery in retail demand as Japan rolled back its pandemic measures.

Data from 2016-2019 showed that commercial land prices are rising at an accelerated pace, fueled by accommodative central bank monetary policy and a boom in hotel construction to cater to the growing number of foreign tourists.

But strict border controls due to COVID-19, partially relaxed in June, have effectively prevented the arrival of tourists. Last year, only 250,000 foreigners visited it, which is 0.8% more than in 2019.

As the yen has fallen nearly 20% against the US dollar this year, officials have hinted at a further sharp easing of border controls to boost foreign visitors. read more

Property prices in some popular tourist destinations rose in the 12 months to July 1, thanks to returning local visitors. But areas that rely heavily on foreign tourists, such as central Osaka, are still seeing price drops, a land ministry spokesman said.

Tuesday’s data also showed a 1.7% rise in industrial land values. This was the fifth year of price increases, helped by strong demand for online retail storage space.

Among the 21,431 locations surveyed, the industrial area in southwest Kumamoto Prefecture experienced the largest increase in land prices, 31.6%, thanks to the construction of a plant next door by Taiwan Semiconductor Manufacturing Co (TSMC). (2330.TV).

With Sony Group Partners (6758.T) and Denso Corp. (6902.T), TSMC, the world’s largest contract chip manufacturer, is building its first Japanese factory in Kumamoto. read more

“A number of semiconductor-related firms and logistics operators are setting up business there (in Kumamoto),” a land ministry spokesman said, adding that the project has also boosted residential and commercial property values ​​in neighboring areas.

Register now and get FREE unlimited access to Reuters.com

Reporting by Kantaro Komiya; editing by Bradley Perrett

Our standards: Thomson Reuters Trust Principles.

.

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,
Previous Post

Questions about NASCAR’s next generation cars after the race

Next Post
Uganda declares Ebola outbreak after finding rare Sudanese strain
Blog

Uganda declares Ebola outbreak after finding rare Sudanese strain

Leave a Reply

Your email address will not be published. Required fields are marked *