Land prices in Japan in 2023 rose at the fastest pace since comparable data available in 2010, the Revenue Agency said on Monday, suggesting the recovery has taken hold thanks to buoyant tourism following the coronavirus pandemic.
Average land prices rose 2.3% last year, rising for the third consecutive year, according to a survey by the National Tax Agency, extending gains from a 1.5% increase in 2022 and 0.5% in 2021.
Land prices rose in 29 of 47 prefectures nationwide, including Tokyo, northern Hokkaido and southern Okinawa, the survey found. The number is up from 25 prefectures the previous year. Prices decreased in 16 prefectures, compared to 20 prefectures in 2022.
With solid demand for housing and commercial land, Fukuoka Prefecture saw the largest increase of 5.8 percent, according to the survey.
Redevelopment projects have supported demand for offices in Fukuoka. The recovery in tourism has also supported demand for hotels and restaurants.
The return of foreign visitors after the pandemic has helped a plot in Tokyo’s upscale Ginza shopping area remain Japan’s most expensive location for the 39th consecutive year, the survey found.
The price of land in Ginza rose 3.6% in 2023, rising for two consecutive years, to 44.2 million yen ($274,705) per square meter.
The nation had more than 3 million visitors for the third consecutive month in May, as the weak yen spurred a record pace for inbound tourism, according to data from the Japan National Tourism Organization (JNTO).
Last year, Japan received about 25 million foreign visitors, after the number hit a record 31.9 million in 2019.
The tax agency assesses land prices on January 1 of each year to calculate inheritance and gift taxes on properties purchased that year.
($1 = 160.9000 yen) (Reporting by Kaori Kaneko; Editing by Kim Coghill)
