Japan average land prices inch up for the first time for 27 years

Japan average land prices inch up for the first time for 27 years

Japan's average land prices managed to surge for the first time for 27 years in the year to July 1 because an influx of foreign tourists stimulated demand for shops and hotel properties. That’s what a government poll disclosed on Tuesday.

As a matter of fact, commercial land prices tacked on for a second straight year, while the tempo of the dive in residential land prices speeded down for a ninth consecutive year, according to the land ministry's annual poll.

By the way, land prices appear to be a major gauge to estimate how much Japan asset prices have revived after a long period of deflation.

The recovery in Japanese salaries as well as employment, not to mention low interest rates backed the recovery.

The poll disclosed that nationwide average land prices managed to rally by 0.1% in the year to July 1, which is the first jump since 1991, exactly when a real estate bubble had burst.

Besides this, commercial land prices managed to gain 1.1% following a 0.5% rally in 2017, led by a tourism boom as well as redevelopment of urban areas. Firm corporate profits spurred demand for offices, as the poll revealed.

As for residential land prices, they went down by 0.3% in contrast with the previous year's 0.6% slump.

Industrial land prices jumped by 0.5%. It also appears to be the first ascend for 27 years. It became possible because of demand for large-scale logistics facilities.

In Osaka, Nagoya, and Tokyo average land prices surged by 4.2%, speeding up from 3.5% in 2017.

Japan’s authorities have an objective of up to 40 million foreign visitors by 2020, when this Asian country is expected to host the Summer Olympic Games. Eventually, the number leapt by 19.3% hitting a record 28.7 million last year.

 

 

Similar

Market updates on August 15

The risk sentiment remains under pressure after the comments by China about the countermeasures against the US tariffs. Thus, the AUD/USD and the USD/JPY pairs will be under our attention.

Latest news

German exporters don’t care about stronger euro

German exporters demonstrate ascending optimism as for their business prospects because growing demand from other euro zone countries helps to compensate worries regarding the strengthening currency, as the Ifo economic institute told on Wednesday…

Japan's October machinery orders tack on

In October, Japanese machinery orders rebounded with a faster soar than anticipated, thus re-affirming the resilience of capital spending, which is a major driver in the Japanese economy's almost two-year expansion…

Deposit with your local payment systems

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Internal error. Please try again later

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera