Japan's average land-price index rose 2.9% year-on-year, marking the highest increase rate ever recorded [1].
This surge reflects a significant shift in the Japanese real estate market, where the convergence of foreign investment and domestic urban renewal is pushing valuations to levels not seen in decades.
Kenichiro Yumeye, a senior researcher at the Urban Future Research Institute, said the growth represents the largest increase since the bubble era of the Heisei period [1]. The national average has now risen for three consecutive years [2].
In Tokyo, the Ginza district reached a road-value of ¥53.36 million per square metre [1]. Other areas of the capital also saw substantial gains, with Asakusa increasing by 27.5% [1] and Adachi-ku rising by 24.2% [1]. Nakano saw a more modest increase of two% [1].
Outside of Tokyo, the steepest local rise occurred in Hakuba Village, Nagano, where prices jumped 32.7% from the previous year [1]. This spike is largely attributed to the area's status as a premier ski destination. In Okayama, the increase rate reached 9.1%, the third-highest in the nation [3], with the highest road-value in that prefecture hitting ¥1.79 million per square metre [3].
In Aichi, the highest road-value was recorded at ¥10 million per square metre [4].
Experts said these trends are due to a surge in inbound tourism and ongoing urban redevelopment projects [1, 5]. The data, released for the most recent fiscal year, indicates that the demand for land in tourist hubs and redeveloped city centers is outpacing supply.
“Japan's average land-price index rose 2.9% year-on-year, marking the highest increase rate ever recorded.”
The record-breaking rise in land prices suggests that Japan's real estate market is decoupling from its long-term stagnation. By linking growth to inbound tourism and redevelopment, the data indicates that specific 'hotspots'—rather than a general national trend—are driving the economy. This creates a bifurcated market where high-demand tourist and commercial zones see aggressive appreciation while other rural areas may remain stagnant.
