Japan’s real estate market continues to demonstrate remarkable resilience and growth, according to the latest data released by the Ministry of Land, Infrastructure, Transport and Tourism. The 2025 Land Price Survey reveals a consistent upward trajectory in land prices nationwide, with particularly strong performance in major metropolitan areas. This fourth consecutive year of increases signals ongoing market strength despite global economic uncertainties.
Translated Press Release from the Japan Ministry of Land, Infrastructure, Transport and Tourism:
Nationwide Land Price Trends Show Fourth Consecutive Year of Increase
– 2025 Land Price Survey –
March 18, 2025
Land prices across Japan continue their upward trend, reflecting a gradual economic recovery. Although variations exist by region and land use, the three major metropolitan areas are experiencing a larger increase, while local areas also continue to show an upward trend.
The 2025 Land Price Survey analyzed 26,000 locations nationwide, revealing the following trends over the past year:
National Average
- The average land price across all uses, as well as residential and commercial land, increased for the fourth consecutive year, with the rate of increase expanding.
Three Major Metropolitan Areas
- The average land price across all uses, residential land, and commercial land increased for the fourth consecutive year, with a growing rate of increase.
- In the Tokyo and Osaka metropolitan areas, the rate of increase continued to expand, while in the Nagoya metropolitan area, the rate of increase slightly narrowed.
Regional Areas
- The average land price across all uses, residential land, and commercial land increased for the fourth consecutive year.
- In the four major regional cities (Sapporo, Sendai, Hiroshima, and Fukuoka), the rate of increase slightly narrowed, but in other areas, the upward trend generally continued.
For detailed results, please visit the Land, Real Estate, and Construction Industry homepage and access the “Land Price Survey” page:
https://www.mlit.go.jp/totikensangyo/index.html
Information on individual land prices will be available in the Real Estate Information Library:
https://www.reinfolib.mlit.go.jp/
(Scheduled for release on March 19. Due to high traffic, access may be limited on the release day.)
What is the Land Price Survey?
The Land Price Survey is conducted by the Land Appraisal Committee of the Ministry of Land, Infrastructure, Transport, and Tourism based on the Land Price Survey Act. It determines and announces the standard land price per square meter as of January 1 each year for key locations within urban planning areas. These prices serve as a benchmark for general land transactions and as a reference for public land acquisition pricing.
Note:
Regional areas refer to all municipalities outside the three major metropolitan areas (Tokyo, Osaka, and Nagoya). The classification of municipalities into metropolitan areas follows policy zones designated under laws such as the National Capital Region Development Act. For a detailed list of municipalities included in each metropolitan area, please refer to the “Past Publications” section under the Land Price Survey page.
Source (JP Only): https://www.mlit.go.jp/report/press/content/001873281.pdf
Record-Breaking Growth in the Property Market
The latest data reveals that Japan’s land prices have risen at their fastest pace in 34 years, with nationwide prices increasing by 2.7% as of January 2025. This marks the strongest growth since 1991, before the bursting of Japan’s asset bubble. Commercial land values showed particularly impressive performance, growing by 3.9%, driven by tourism in popular destinations like Kyoto and Osaka. Residential land prices also increased by 2.1%, supported by sustained demand in a relatively low interest rate environment. The three major metropolitan areas surrounding Tokyo, Osaka, and Nagoya recorded a robust 4.3% gain, while industrial areas climbed 4.8% – marking the ninth consecutive year of growth in this sector, bolstered by the development of large-scale logistics facilities for the expanding e-commerce market.
What This Means for Investors
The sustained growth in Japan’s land prices presents compelling opportunities for property investors. Tokyo and Osaka’s accelerating growth rates are particularly noteworthy, signaling strong market fundamentals in these prime metropolitan areas. For international investors, this upward trajectory offers potential for both capital appreciation and stable rental yields in one of the world’s most secure property markets.
These trends are especially significant when considering Japan’s reputation for high-quality construction, earthquake-resistant buildings, and excellent infrastructure. The expansion of growth beyond major cities into regional areas also indicates broadening investment potential across the country, allowing for diversified portfolio strategies.
Why Choose Housing Japan for Your Investment Journey
At Housing Japan, our deep understanding of Tokyo’s luxury real estate market positions us uniquely to help you navigate these favorable market conditions. Our team of expert agents possesses intimate knowledge of Tokyo’s most desirable neighborhoods and emerging investment hotspots, ensuring you make informed decisions aligned with your investment goals.
We specialize in identifying premium properties with strong appreciation potential in areas showing sustained growth according to the Land Price Survey data. Whether you’re looking for a luxury residence in central Tokyo or an investment property with attractive yields, our comprehensive services – from property and land acquisition to management – provide end-to-end solutions for discerning investors seeking to capitalize on Japan’s robust real estate market.
For those interested in learning more about investment opportunities in Tokyo’s thriving real estate market, our team is ready to provide personalized consultation and insights tailored to your specific requirements.
Q&As
Q: Does land increase in value in Japan?
A: Yes, on average Japan’s land prices have been rising for the past four years, with the 2025 Land Price Survey showing record growth in Tokyo, Osaka, and major cities.
Q: Why are Japan’s land prices rising?
A: Japan’s land prices are increasing due to strong economic recovery, high demand in major metropolitan areas, and growing interest from domestic and international investors as well as increased tourism.
Q: How much have land prices increased in Japan?
A: As of January 2025, Japan’s nationwide land prices rose by 2.7%, marking the fastest growth in 34 years. Commercial land prices surged 3.9%, driven by tourism and urban development.
Q: Which areas in Japan have the highest land price increases?
A: Tokyo, Osaka, and Nagoya saw the highest increases, with land prices rising 4.3%. Industrial areas also grew by 4.8%, fueled by logistics and e-commerce expansion.
Q: Is Japan’s real estate market a good investment?
A: Yes, Japan’s stable economy, rising land prices, and strong rental demand make it an attractive real estate market, particularly in Tokyo which can lead to good returns. Especially when using a trusted knowledgable Real Estate agaent such as Housing Japan.
