According to a March 2025 survey by Japan's Ministry of Land, Infrastructure, Transport and Tourism, the national average price of residential and commercial land increased 2.7% year-on-year, hitting the highest growth rate in 34 years since the bubble economy collapsed in 1991.
Land price increases in the three major metropolitan areas of Tokyo, Osaka, and Nagoya led the way. Regional cities also saw widespread land price increases, with commercial land increases higher than residential land.
Driving factors include economic recovery driving increased commercial activity, low interest rate policies stimulating investment demand, and inbound consumption driving commercial real estate demand.
Rising land costs may push up new property prices, while existing property asset values increase. Investors need to pay attention to the impact of land price changes on investment returns.
Data source: Japan Ministry of Land, Infrastructure, Transport and Tourism, finance.ifeng.com