Japan land prices rise on chipmaking factories, tourism rebound
LAND prices rose across Japan for a second straight year, with values in rural residential areas ending a three-decade decline, buoyed by the construction of semiconductor factories and a rebound in tourism following the pandemic.
Average prices nationwide climbed 1 per cent in the year to July 1, accelerating from a 0.3 per cent increase a year earlier, a report by the Ministry of Land, Infrastructure, Transport and Tourism showed. Residential land values gained 0.7 per cent, while commercial sites jumped 1.5 per cent.
The figures show how a recovery from the bursting of a real estate bubble in the early 1990s is spreading from major cities. In rural areas, average residential land prices rose 0.1 per cent, the first increase in 31 years. Regions also saw values of commercial locations rise for the first time in four years.
The biggest gains in land for housing were seen in Chitose, a city in Hokkaido prefecture where government-backed startup Rapidus has begun building a cutting-edge chip foundry. An area near the train station saw a surge of 31 per cent.
Increases in commercial land values were led by Otsu-cho in Kumamoto Prefecture, near where Taiwan Semiconductor Manufacturing is building a chip plant. The area saw commercial land prices jump 32 per cent.
Building semiconductor factories requires a large number of human resources, and many people are expected to settle in the areas after the plants go online. Meanwhile, Japan has been enjoying a revival in inbound tourism since it removed border restrictions late last year.
Land prices jumped in parts of Okinawa Prefecture and Hakuba Village in Nagano Prefecture, locations that are benefiting from the travel recovery. BLOOMBERG
Share with us your feedback on BT's products and services
