TOKYO (MNI) – The average national price of land for all purposes
measured at the start of 2011 fell 3.0%, posting the third straight
year-on-year drop, the Ministry of Land, Infrastructure, Transport and
Tourism said on Thursday.
But the pace of decline in 2011 decelerated from a 4.6% drop seen
at the beginning of 2010, the ministry said. The land price fell 3.5% in
2009.
The ministry estimates the average land price by surveying 26,000
spots in Japan every year.
The average land price rose 1.7% in 2008 and 0.4% in 2007, which
was the first rise in 16 years.
“Land prices are turning around after the recent downtrend,” the
ministry said, adding that prices of land for residential use are
showing a clearer recovery, compared with prices of land for commercial
use.
As of Jan. 1, 2011, the average price of land for residential use
fell only 2.7% y/y while that for commercial use declined 3.8%.
Demand for land for residential use is stronger than last year,
thanks to tax credits on mortgage loans and continued low interest
rates, the ministry said.
skodama@marketnews.com
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