Japan's land prices climb for fifth consecutive year amid housing surge

Land prices across Japan have risen for the fifth consecutive year, reflecting sustained demand in the residential and tourism sectors. The gains underscore a broader recovery in the nation's property market, which has benefited from shifting investment patterns and renewed interest in urban development.

The three largest metropolitan areas—Tokyo, Osaka and Nagoya—have led the advance, experiencing substantially stronger price growth than the rest of the country. This geographic concentration highlights a widening economic divide between Japan's major urban centres and peripheral regions, a persistent challenge for policymakers seeking more balanced national development.

The housing sector has remained a primary driver of price appreciation, with residential property continuing to attract both domestic and international investors. Tourism-related development has also contributed significantly to the expansion, particularly in metropolitan zones that have benefited from increased visitor numbers and hospitality infrastructure investments.

Despite five years of consecutive gains, analysts note that growth remains uneven across prefectures and municipalities outside the major metros. Rural and secondary urban areas continue to struggle with stagnant or declining valuations, reflecting demographic challenges and limited investment interest beyond Japan's economic powerhouses.