Japan’s land prices rose in 2023 at the fastest pace since comparable data became available in 2010, the tax agency said on Monday, signaling a faster recovery helped by buoyant tourism following the coronavirus pandemic.
Average land prices rose 2.3% last year and rose for the third year in a row, a National Tax Administration survey showed, extending gains from a 1.5% increase in 2022 and an increase of 0.5% in 2021.
Land prices rose in 29 of the 47 prefectures nationwide, including Tokyo, Hokkaido and Okinawa, the survey found. The number was higher than in the 25 prefectures the year before. Prices fell in 16 prefectures, compared with 20 prefectures in 2022, it found.
With solid demand for both residential and commercial land, Fukuoka Prefecture saw the largest increase of 5.8%, according to the survey.
Redevelopment projects supported demand for offices in Fukuoka Prefecture, while a recovery in tourism also boosted demand for hotels and restaurants there.
The return of foreign visitors after the pandemic ensured that a plot in Tokyo’s upscale Ginza shopping district remained the most expensive location in Japan for the 39th year in a row, the survey found.
The price of the land in Ginza rose 3.6% in 2023, the second consecutive time, to ยฅ44.2 million ($274,705) per square meter.
The country saw more than 3 million visitors in May for the third month in a row as the weak yen helped drive a record pace for inbound tourism, data from the Japan National Tourism Organization (JNTO) showed.
Last year, Japan received about 25 million foreign visitors, after the number reached a record 31.9 million in 2019.
The tax authorities assess land prices every year from January 1 to calculate inheritance and gift taxes on properties acquired that year.
