Residential land prices in Japan’s three major metropolitan areas of Tokyo, Osaka and Nagoya rose by an average of 0.5 percent in the 12 months to Jan. 1, while commercial land prices there increased by an average of 1.6 percent, both rising for the first time in six years, the government said Tuesday.
While the average residential and commercial land prices nationwide edged down 0.6 percent and 0.5 percent, respectively, the number of survey locations seeing land price increases jumped to around 7,000 from about 2,000 in the previous year, the Ministry of Land, Infrastructure, Transport and Tourism said in an annual survey.
The latest survey showed land prices are recovering not only in the major metropolitan areas but outside them.
A ministry official attributed the recovery to rising demand for condominiums and offices due to the government’s aggressive economic policies and low interest rates.
Some survey locations, many in Tokyo, saw land price increases of over 10 percent, but the official denied the possibility of an economic bubble backed by speculative purchases.
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