Japanese land prices rise for third year: Survey
Land prices began rising again in 2005 for the first time in 14 years as the economy clawed back from its long downturn
By Agencies |
TOKYO: Japanese land prices rose for a third consecutive year in the latest sign that the world's second-largest economy is slowly emerging from years of deflation, an official survey showed today.
The average price of land alongside major roads in Japan surged 10 per cent to 143,000 yen ($1,352 dollars) per square meter in 2007, the National Tax Agency reported, after an 8.6 per cent rise in 2006.
Land prices began rising again in 2005 for the first time in 14 years as the economy clawed back from its long downturn.
The survey of about 380,000 sites found that Japan's three major metropolitan areas of Tokyo, Osaka and Nagoya posted increases in their average land prices in 2007 for a third straight year.
In metropolitan Tokyo land prices climbed 14.7 per cent to 351,000 yen per square meter, compared with a 13.1 per cent rise in 2006.
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A property market collapse in the 1990s contributed to pushing Asia's largest economy and its stock market into a long deflationary spiral. Construction cranes once again dot the Tokyo skyline although the market is still far from the dizzying heights of the late 1980s, when the grounds of the Imperial Palace were famously valued at more than the state of California.
The most expensive piece of land in the country remains a patch alongside the main street in Ginza, one of Tokyo's most exclusive shopping areas and home to some of the most expensive real estate on earth.
It was valued at 31.84 million yen per square metre, up 27.6 per cent from a year earlier, according to the survey, one of several by the government on national land prices.
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Despite signs of rising land and consumer prices, Japan's central bank is expected to refrain from raising its super-low interest rates any time soon given signs of slowing economic growth.Download
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