The nationwide average of standard land prices in 2020, as of July 1, fell 0.6% from a year ago for all uses, the first decline in three years, the Land, Infrastructure, Transport and Tourism Ministry announced Tuesday.
The average prices of land for residential, commercial and industrial use all dropped. This is because companies and individuals were reluctant to purchase land due to the economic downturn caused by the spread of the novel coronavirus.
The average price of commercial land fell 0.3%, marking the first decline in five years. In the previous year, the average price rose 1.7%. Rates of increases in the Tokyo and Osaka metropolitan zones were smaller, and the average price in the Nagoya metropolitan zone fell for the first time in eight years.
The national average of residential land prices fell 0.7%, marking the 29th consecutive year of decline. The rate of decline was 0.6 percentage points greater than in the previous year.
Average prices in the Tokyo and Osaka metropolitan zones fell for the first time in seven years, and for the first time in eight years in the Nagoya metropolitan zone.
According to the ministry, land prices were trending upward until the latter half of 2019, but have been falling since the start of this year. Commercial land saw the most remarkable decline.
The range of land price reductions was especially wide in tourist spots where there has been construction of hotels and commercial facilities targeting foreign tourists.
The highest commercial land price nationwide was 41 million yen per square meter at Meijiya Ginza Building in the 2-chome district of Chuo Ward, Tokyo. This spot has recorded the nation's highest price for 15 years in a row.
The highest residential land price was 4.72 million yen per square meter at 1-14-11, Akasaka, Minato Ward, Tokyo. This spot ranked highest for the second consecutive year.
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