Land prices in Japan have been falling since its asset bubble burst in the early 1990s, but optimism is taking hold among Tokyo’s real estate professions as prices look set to rise, say analysts.
“Investment from overseas buyers and the demographic concentration in Tokyo will drive up land prices over the next couple of years,” said Nomura’s Japan housing and real estate analyst Daisuke Fukushima. “Japan’s population may be shrinking, but Tokyo’s population has continued to rise.”
Since the asset bubble burst in the early 1990s, land prices in Japan have been on a downward trend. And the country still has a long way to come back from its glory days.