TOKYO (MNI) – The average price of land in Japan for all purposes
measured on July 1 fell 2.7%, posting the 21st straight annual drop, but
the pace of decline slowed from -3.4% last year, the Ministry of Land,
Infrastructure, Transport and Tourism said on Wednesday.
The ministry estimates the average land price by surveying 22,264
locations in Japan every year.
The average land price showed the smallest fall since -1.2% in
2008.
Land prices fell on year in 18,655 points this year, down from
20,564 for last year, while prices rose in 658 points this year, up
from 88.
Rises in land prices were seen in newly developed areas and areas
where the population increased or public transportation systems
improved, the ministry said.
Low mortgage rates and the government’s subsidy program for buying
greener homes helped boost residential land prices, it said.
The Real Estate Economic Institute forecast that 53,000 units of
condominiums will be supplied in 2012 in Tokyo and surrounding cities,
up 19.5% from last year, when the supply fell 0.1%.
The Land Ministry data showed that the average price of real estate
for residential use in Japan fell 2.5% this year after falling 3.2% in
2011 while the average price of real estate for commercial use declined
3.1% following a 4.0% drop last year.
skodama@marketnews.com
** MNI Tokyo Newsroom: 81-3-6860-4823 **
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