TOKYO (Reuters) – Japanese land prices rose the fastest in 2023 since comparable data from 2010 became available, the tax authorities said on Monday. This suggests that the recovery is gaining momentum, thanks in part to vibrant tourism following the coronavirus pandemic.
Average land prices rose 2.3% last year, rising for the third year in a row, a National Tax Authority survey showed, extending gains from a 1.5% increase in 2022 and a 0.5% increase in 2021.
Land prices rose in 29 of 47 prefectures nationwide, including Tokyo, northern Hokkaido and southern Okinawa, the survey showed. The number was higher than last year’s 25 prefectures. Prices fell in 16 prefectures, compared with 20 prefectures in 2022, it showed.
According to the survey, the largest increase was seen in Fukuoka Prefecture, with strong demand for both residential and commercial land: 5.8%.
Redevelopment projects supported demand for offices in Fukuoka, while the recovery of tourism also boosted demand for hotels and restaurants there.
The survey found that the return of foreign visitors after the pandemic has ensured that a plot in Tokyo’s upscale Ginza shopping district has remained the most expensive location in Japan for the 39th year in a row.
The price of the Ginza plot rose 3.6% in 2023, the second consecutive time, to 44.2 million yen ($274,705) per square meter.
The country welcomed more than 3 million visitors for the third month in a row in May as the weak yen fueled record growth in inbound tourism, data from Japan’s National Tourism Organization (JNTO) showed.[FRX/]
Last year, Japan received about 25 million foreign visitors, after the number reached a record 31.9 million in 2019.
Each year, the tax authorities assess land prices from 1 January onwards to calculate inheritance and gift taxes on real estate acquired in that year.
($1 = 160.9000 yen)
(Reporting by Kaori Kaneko; Editing by Kim Coghill)
