Land prices in Japan’s three largest metropolitan areas increased for a second year and residential prices in the cities increased for the first time in six years as low interest rates lifted demand for properties.
The price of land in Tokyo, Osaka and Nagoya gained 0.8 percent on average in the year to July 1 from a 0.1 percent increase a year earlier, the Ministry of Land, Infrastructure, Transport and Tourism said in a report released yesterday. Declines in nationwide land prices, which have been falling for 23 years, narrowed to 1.2 percent, matching the decline six years ago, the report showed.
Property demand has picked up in the world’s third-largest economy as the Bank of Japan eased monetary policy, while expectations for increased building of infrastructure ahead of the 2020 Olympic Games in Tokyo are contributing to the recovery. Real estate prices have risen about 20 percent since Prime Minister Shinzo Abe took office about two years ago, according to an estimate by Deutsche Asset & Wealth Management.