Japan land prices rise 1.5 per cent for fifth straight year

Japanese land prices rose 1.5 per cent in the year to 1 Jul, marking a fifth consecutive annual gain and matching last year's pace, the strongest since 1991. The Bank of Japan is likely to weigh the survey in deciding how quickly to raise still-low interest rates.

TOKYO: Japanese land prices rose 1.5 per cent in the year to 1 Jul, marking a fifth straight year of gains and maintaining the strongest pace of growth since the aftermath of the country's asset-price bubble more than three decades ago, data showed on Tuesday (15 Sep).

The increase matched last year's rise, which was the largest since a 3.1 per cent gain in 1991, when property prices and the economy were beginning to lose steam after years of red-hot growth.

While the Bank of Japan has said it sees little sign of overheating in asset prices, the survey will likely be among factors it will scrutinise in determining how swiftly it should dial back stimulus and raise still-low interest rates.

The data suggests Japan's land market remains supported by a gradual economic recovery, with residential and commercial property prices continuing to rise across much of the country.

Average land prices across the Tokyo, Osaka and Nagoya metropolitan areas rose 4.4 per cent from a year earlier, up 0.1 percentage point from the previous year, the data showed.

Tourist destinations continued to benefit from a surge in inbound visitors. Hakuba, located in Nagano Prefecture, saw commercial land prices jump 35.6 per cent, reflecting strong demand in the popular alpine tourist destination.