How Much Is Land in Japan? A Look at Prices and Value

Land value in Japan is complex, influenced by many factors, making a single answer to “how much is land?” challenging. Prices are shaped by economic trends, land characteristics, and geographical location. This variability highlights the importance of examining the elements contributing to land valuation.

General Landscape of Land Prices

The Japanese land market shows a consistent upward trajectory. Nationwide land prices have risen for several consecutive years, marking the fastest growth in over three decades in 2025. This increase is largely attributed to strong demand in major cities and economic recovery. Land is measured in square meters, though ‘tsubo’ (approximately 3.31 square meters) is also used. Low-interest rates support sustained demand, contributing to price increases.

Key Determinants of Land Value

Several factors influence land prices across Japan. Location plays a primary role, with land near major cities, transportation hubs, and commercial centers commanding higher values. Proximity to essential services like schools and hospitals further enhances appeal.

Zoning and land use regulations significantly impact a plot’s potential and value. Different zoning categories (residential, commercial, industrial, agricultural) dictate what can be built and how it can be utilized, directly affecting development and investment opportunities.

Land parcel size and shape are important. Larger plots offer more development flexibility, while irregular lots can reduce per-square-meter value. Accessibility to public roads and essential utilities (water, sewage, electricity, gas) are fundamental. Reliable internet access is an important utility for desirability.

Topography and geological conditions play a role. Flat land is more desirable and easier to develop than sloped terrain, which incurs additional construction costs. Natural disaster risk (earthquakes, floods) and soil stability influence value. Frontage (length bordering a public road) and orientation (e.g., south-facing) are beneficial attributes.

Existing structures’ presence and condition affect land value. A building in good condition or with redevelopment potential may contribute to overall value. Conversely, a dilapidated structure requiring demolition or renovation might reduce attractiveness.

Regional Differences in Land Costs

Land prices in Japan exhibit regional disparities, with major metropolitan areas commanding higher values than rural regions. Tokyo, particularly central districts like Ginza and Shibuya, features the highest land prices. Prime commercial land in Tokyo’s Chūō ward can exceed 9.2 million yen per square meter, while residential land in Tokyo’s 23 wards averaged 771,600 yen per square meter in 2025.

Osaka and Kyoto represent high-value areas, though at lower price points than Tokyo. In 2025, Osaka city residential land averaged 282,800 yen per square meter, and commercial land reached 2,237,200 yen. Kyoto city’s residential land averaged 153,600 yen per square meter. These urban centers benefit from economic activity, dense populations, and extensive infrastructure, driving up values.

Regional core cities like Fukuoka, Sendai, and Sapporo offer moderate prices. For example, Kagoshima prefecture’s average land price was around 72,267 yen per square meter. Even within large prefectures, prices vary; outlying areas within Tokyo Prefecture, such as Edogawa ward, had residential land prices around 413,200 yen per square meter, a fraction of central Tokyo’s costs.

Rural prefectures and distant regions present the most affordable options. Land in areas like Hyōgo or Yamaguchi can be found for 20,000 to 50,000 yen per square meter. These areas offer larger plots at lower cost, appealing to those seeking more space or development outside urban environments.

Official Land Price Assessment Systems

Japan employs several official systems to assess and publicly report land values, providing transparent data. The Chika Koji, or Public Notice of Land Prices, is an annual assessment by the Ministry of Land, Infrastructure, Transport and Tourism (MLIT). This system establishes standard land prices at approximately 30,000 points nationwide, primarily in urban areas, serving as a benchmark for land transactions. Chika Koji data is released around April 1 each year and used to identify trends.

Complementing the national assessment, prefectural governments conduct the Todofuken Chika Chosa, or Prefectural Land Price Survey. This supplementary survey, released around July 1, covers approximately 25,000 points across the country, including non-urban areas like forest and agricultural land, offering localized data. Both Chika Koji and Todofuken Chika Chosa provide average prices per square meter for specific locations, reflecting market conditions.

The National Tax Agency utilizes the Rosensu, or Street-Frontage Value, system for inheritance and gift tax purposes. This system assesses land value based on its frontage to a public road and is published annually around October. While for tax calculation, Rosensu values can estimate land values in relative locations.

Local municipalities assess land for fixed asset tax purposes, known as Fixed Asset Tax Valuation. Property owners pay this tax annually; the assessed value is about 70% of the officially announced land price. This valuation is updated every three years by local governments and serves as the basis for calculating the fixed asset tax (1.4% of assessed value) and potentially a city planning tax (up to 0.3% in urbanization promotion areas). These systems collectively provide publicly accessible information to understand land values across Japan.