Tourist hotspots fuel Japan's land price gains for fifth year

Japan’s average land prices rose for a fifth consecutive year as of July 1, with nationwide values up 1.5%, residential land up 1.0% and commercial land up 2.9%. Growth was strongest in the Tokyo and Osaka metropolitan areas, where office demand, redevelopment, housing needs and foreign-tourist activity supported prices, while gains were weaker or flat in much of the rest of the country and momentum slowed in Nagoya and several regional cities. Tourist destinations recorded some of the sharpest increases, including Furano’s 32.0% residential rise, Hakuba’s 35.6% commercial increase and a 26.9% jump near Tokyo’s Sensoji Temple. In Osaka, infrastructure and redevelopment expectations helped drive gains in Nishi Ward, while elevated residential areas also attracted buyers concerned about flooding and other disasters. The survey does not change travel rules or immediately determine rents, but sustained increases could influence accommodation investment, housing affordability, taxes and future rental costs.