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Buoyed by real estate investments, commercial land prices in Japan escaped declines in July for the first time since 2007, reported Reuters.
In fact, a government survey showed that commercial land prices in three major metropolitan areas rose at the fastest pace since 2008 as at 1 July 2016 from the previous year.
“Demand for retail spaces and accommodations has risen due to an increase in foreign tourists,” said the Ministry of Land, Infrastructure, Transport and Tourism.
“The vacancy rate of offices has fallen in major cities, which helped to boost profits.”
Prices of commercial land in three key metropolitan areas of Nagoya, Osaka and Tokyo increased 2.9 percent, up for the fourth consecutive year and the fastest rate since 2008, when prices climbed 3.3 percent.
Japan saw overall commercial land prices held flat from a year ago, the first time they stopped falling since 2007, when they increased 1.0 percent.
Declines of overall land price in regional cities also moderated, with commercial land prices in four regional hubs of Fukuoka, Hiroshima. Sendai and Sapporo increasing 6.7 percent.
The ministry attributed the increase to more people relocating into those areas, which resulted in higher demand for redevelopment and transportation infrastructure.
Nikki De Guzman, Editor at CommercialGuru, edited this story. To contact her about this or other stories email nikki@propertyguru.com.sg
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