US economy

Japan's 2018 commercial land prices rise at fastest pace in 11 years


© Reuters. The skyline of Osaka

By Junko Fujita

TOKYO (Reuters) – Japanese commercial land prices climbed at their fastest pace in 11 years in 2018, a government survey showed on Tuesday, led by strong demand for office space and a boom in tourism.

Prices for land across the country’s main centres rose 2.8 percent on average last year, according to the Ministry of Land, Infrastructure, Transport and Tourism.

A hotel construction boom continues as Japan aims to bring in 40 million foreign tourists in 2020, when Tokyo hosts the Summer Olympics. Last year the number of tourists hit a record 31 million people, according to the Japan National Tourism Organisation.

National average commercial land price growth was the fastest since 2007, when prices rose 3.8 percent.

Prices rose the most in the popular ski resort of Niseko on the northern island of Hokkaido, with a 58.8 percent increase. The second-biggest spike was in a part of Osaka in western Japan, which rose 44.4 percent.

Osaka, long Japan’s “second city,” is winning the race against Tokyo to draw foreign tourists. Inbound tourism to the city surged five-fold between 2012 and 2017, as it lured low-cost carriers and promoted itself as a base to visit World Heritage sites in nearby Kyoto and Nara.

The average residential land price rose 0.6 percent last year, according to the ministry’s data. The ministry surveyed 26,000 spots nationwide.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





READ SOURCE

Leave a Reply

This website uses cookies. By continuing to use this site, you accept our use of cookies.