Commercial land prices in Japan's 3 largest cities rise again
Tokyo, Osaka, Nagoya see commercial land prices rise 2.3 per cent in the year to June
Commercial land prices in Japan's three largest metropolitan areas rose 2.3 per cent in 12 months to June, extending gains as low interest rates spurred property acquisitions, a government survey showed.
Commercial land prices for areas surrounding Tokyo, Osaka and Nagoya rose at a faster pace in that period than the 1.7 per cent increase in the previous one year, according to the Ministry of Land, Infrastructure, Transport and Tourism.
"Easy money policy has helped investors to raise money easily, which drove property investments," Tomoaki Takahashi, a director at the ministry's land price publication office, told a media briefing.
An influx of foreign tourists boosted demand for retail spaces in major cities, which also contributed to the rise in commercial land prices, Takahashi said.
Overall, Japan's commercial land prices fell 0.5 per cent during the year ended June 30. This eighth consecutive annual fall was rooted in declines in land prices in regional cities, the survey showed.
The pace of decline slowed from the previous 12 months' 1.1 per cent drop.
While a downward trend for regional cities continued, commercial land prices in for four regional hubs - Sapporo, Sendai, Hiroshima and Fukuoka - jumped 3.8 per cent, compared with a 2.6 per cent increase in the year ended June 2014, the survey showed.
Nationwide residential land prices fell 1.0 per cent, the 23rd straight annual decline, while prices for the three metropolitan areas rose 0.4 per cent, similar to the previous year's 0.5 per cent gain.
Residential land prices for regions around the four main regional hubs rose 1.7 per cent, faster than previous year's 1.3 per cent gain, according to the survey.