Tourism boosts Japanese land prices, highest in 16 years

Illustration of vehicle and pedestrian activity in one of Tokyo's urban areas, Japan. The average land price in Japan rose 2.9 percent in 2026, recording an increase for five consecutive years. Data from the Japanese National Tax Agency, quoted by Kyodo News, showed that the increase was driven by urban redevelopment and the recovery of the tourism sector. Photo: Illustration/Pexels.

JAKARTA - The average land price in Japan rose 2.9 percent in 2026. This is the fifth consecutive annual increase and the fastest since the calculation method was changed in 2010.

Launching a report by Kyodo News, quoted Wednesday, July 1, the increase was driven by urban redevelopment and a strong return of tourism demand.

Data from the Japanese National Tax Agency as of January 1, 2026 shows that 36 of the 47 prefectures recorded an increase in land prices. Tokyo led with a 9.4 percent surge, followed by Okinawa 6.6 percent and Osaka 5.1 percent.

Only eight prefectures were still down. Wakayama weakened 0.5 percent, while Niigata and Tokushima each fell 0.4 percent.

In Japan, this land price data is used to calculate inheritance tax and gift tax.

The most striking spike occurred in tourist areas. Hakuba Village in Nagano Prefecture recorded the highest increase, namely 32.7 percent. Nozawa Village, also in Nagano, rose 31.3 percent, while Furano in Hokkaido rose 28 percent.

In central Tokyo, land prices in the Asakusa tourist area jumped 27.5 percent.

According to a Kyodo News report, the deepest decline occurred in the Wajima shopping district, Ishikawa Prefecture, which fell 8.6 percent after being hit by a major earthquake on January 1, 2024.

Meanwhile, the land in front of the Kyukyodo stationery store in Ginza, Tokyo, has again become the most expensive location in Japan for 41 consecutive years. Its value reaches 53.36 million yen or about US$328 thousand per square meter, up 11 percent from the previous year.

The area designated as a difficult zone to be repopulated in Fukushima Prefecture remains excluded from land price assessments. The area was affected by the Fukushima Daiichi nuclear power plant disaster in 2011, so it is difficult to calculate its value.

This data shows a clear difference. Tourist areas and big cities recorded an increase in land prices, while areas that are still recovering from disasters have not moved.