TOKYOJuly 2 (News On Japan) – Land prices, a measure of property value used in inheritance tax returns, have undergone significant changes this year. Shibuya, which is currently undergoing extensive redevelopment, has been ranked second nationally for the first time.
Reporter: “A new building will be opened next Monday next to Shibuya Hikarie.”
The new ‘Shibuya Axes’ complex, which opens its doors on July 8 on Aoyama Street in Shibuya, Tokyo, is part of a large-scale once-in-a-century redevelopment in Shibuya.
In front of the Hachiko exit of Shibuya Station, high-rise buildings such as ‘Shibuya Scramble Square’, which opened in 2019, have increased compared to eight years ago. This sharp increase in development is reflected in land price assessments.
The National Tax Administration announced today that the land price for “QFRONT” in Shibuya is now second only to “Kyukyodo” in Ginza, a first since registration began.
The national average increase in land prices this year is 2.3%, the highest increase since 2010. Experts attribute this to the recovery in consumption, driven by inbound tourism, and a weaker yen.
Kenichiro Yume, a principal researcher at the Urban Future Research Institute, explains: โThe number of foreign visitors has surpassed 2019 levels and the weaker yen has significantly increased per capita travel spending. As consumption recovers, demand for retail and hotel space increases, creating a cycle where higher tenant demand leads to rising property prices and land values.โ
Asakusa, a popular tourist destination, recorded the highest increase in land prices in Tokyo. In the Kaminarimon area, foreign tourists are a common sight.
A rickshaw driver notes, “The number of foreign customers has increased significantly compared to last year. When I asked a customer why they came, they said ‘yen depreciation’ and I thought ‘wow.'”
Land prices are rising again after the COVID-19 pandemic. Experts predict continued upward trends.
Kenichiro Yume added: “Compared with a year ago, the current exchange rate of 160 yen per dollar represents a depreciation of about 20%. This favorable condition is likely to continue compared with 2019.”
Rising land prices are expected to continue.
Source: TBS
