Japanese Land Prices Rise for Fifth Consecutive Year, Reaching 35-Year High
Tokyo – Japan’s land prices continued their upward trajectory in 2026, marking the fifth consecutive year of increases. The nationwide average for all land types rose by 2.8% year-on-year as of January 1, 2026, reaching the highest level in 35 years, according to a report released by the Ministry of Land, Infrastructure, Transport and Tourism on March 17, 2026.
The increase represents a 0.1 percentage point rise from the previous year, mirroring a trend seen in urban centers like Tokyo and Osaka. Demand for residential and commercial properties remains robust in these areas, driving up prices. This sustained growth underscores the ongoing economic recovery and investment activity within Japan’s major metropolitan areas.
However, the pace of price increases has begun to diverge across the country. Whereas Tokyo, Osaka, and Nagoya all experienced overall gains, Nagoya saw a deceleration in the rate of increase. Similarly, the rate of increase slowed in the country’s regional areas, though prices still rose for the fifth year in a row.
A breakdown of land use reveals that residential land prices increased by 2.1%, while commercial land saw a more substantial rise of 4.3%. Both categories have now experienced five consecutive years of growth. The increase in commercial land prices was particularly notable, expanding from 3.9% the previous year.
Approximately 68.3% of the roughly 25,000 survey locations nationwide reported price increases. Demand for luxury properties and vacation homes, particularly in Hokkaido and Nagano prefectures, is contributing to the upward trend in certain regions. Areas near train stations and with convenient access to transportation are seeing increased land values.
In Hiroshima Prefecture, land values near the Ekimae-Ohashi Line of the Hiroshima Electric Railway recorded the highest increase in the Chugoku region. The growth in tourist destinations, such as Nikko, is also fueling demand and driving up land prices, as evidenced by increased interest in commercial properties for new businesses.
