27 Japanese prefectures see declines despite overal land price rises for fourth consecutive year
According to National Tax Agency information published Monday, land rates rose for the fourth consecutive year, indicating requirement in main towns and tourist locations fueled by growing amounts of tourists from abroad and a recovery economy.
Brisk hotel and office supply propelled rates up by an estimate of 1.3 per cent as of January 1, compared to a year ago, but the divide between metropolitan and rural regions proceeded to widen.
Land rates, primarily in metropolitan regions, expressed a robust appetite for expenditure in real estate and stable supply for accommodation, backed by better jobs. Inheritance and gift taxes are calculated using the rates.
The data showed that prices rose in 19 of the 47 prefectures, including Tokyo, which will host next year’s Summer Olympics, compared to 18 in the 2017 calendar year.
Prices fell in 27 prefectures, however, and stayed stationary in Hyogo.
The study addressed around 329,000 inheritance and gift tax calculations locations for 2019.
By prefecture, Okinawa saw the steepest 8.3 per cent increase supported by healthy tourism supply focused on Naha, accompanied by 4.9 per cent Tokyo and 4.4 per cent Miyagi, where renovation initiatives around Sendai Station were introduced.
Land rates grew for the first time in 27 years in Ishikawa and Oita prefectures but remained stationary in 13 prefectural capitals. Tottori was the only property that saw a 4.5 per cent decrease.
The land in front of the Kyukyodo stationery shop in the Ginza entertainment district of Tokyo was projected to be awarded a total 45.6 million yen per square meter, rendering it the 34th consecutive year’s most costly parcel of property in the nation.
It was the fifth year in a row the cost of the plot surpassed the 36.5 million yen it reported in 1992, the last year property rates sensed the impacts of the property taxation “floating industry” which began in the early 1980s.
The study proceeded to demonstrate no importance in land identified as relocation areas in areas of Fukushima Prefecture following the nuclear disaster of 2011.
According to individuals engaged in the local real estate company, rates along the tsunami-devastated Tohoku Pacific coastline have also declined.
Eight years since the March 11 floods, the amount of property deals has decreased, they said. After the accidents, apartments were in elevated demand, but supply in latest years has surpassed requirement, they said.
A location in Niseko, Hokkaido’s alpine park region famous with international visitors, saw the second consecutive year’s sharpest cost increase at 50%.