2024 Land Value Surge in Tokyo and Kanagawa: Key Factors and Future Insights for Foreign Investors

Land Value Surge in 2024: Insights for Foreign Investors in Tokyo and the Kanto Region

Key Points:

  • Metropolitan Area Focus
  • Economic Trends

On July 1(2024), the National Tax Agency announced the land value(路線価)

as of January 1, showing a national average increase of 2.3%,

marking the third consecutive year of growth.

This rise, the largest in 16 years, is driven by the recovery of inbound tourism,

redevelopment projects, and increased housing demand.

Regional Highlights:

The average land value increased in 29 prefectures, with the highest increases in:

  • Fukuoka: +5.8%
  • Okinawa: +5.6%
  • Tokyo: +5.3%
  • Hokkaido: +5.2%
  • Miyagi: +5.1%
  • Aichi: +3.2%
  • Osaka: +3.1%
  • Saitama: +2.1%

Notable increases by tax office area included:

  • Hakuba Village, Nagano Prefecture: +32.1%
  • Kikuyo Town, Kumamoto Prefecture: +24.0%
  • Nishi Ward, Osaka: +19.3%

Additionally, Shinsaibashi in Minami, Osaka, saw a significant rise of over 10% from a flat rate last year.

Ginza 5-chome in Tokyo’s Chuo Ward remained the highest land value in Japan for the 39th consecutive year

at 4,424 million yen per square meter, a 3.6% increase.

Comparative Insights:

Some areas have seen more than double the increase compared to 2014.

For example, Kanagawa Ward and Kohoku Ward in Yokohama experienced a 3.15 times rise.

Expert Insights:

One industry analyst attributes the rise to the recovery from the COVID-19 pandemic,

which boosted inbound tourism and demand for central housing and office spaces.

He predicts that unless there is a sharp rise in interest rates or a major shift in the global economy, land prices will remain stable.

Another expert at the Real Estate Economic Institute,

highlights that increased costs for labor and materials have driven up apartment and detached house prices.

The trend is expected to continue, particularly in areas near stations due to intense land competition.

Real Estate Insights:

Investment Potential:

Areas with high land value increases, like central Tokyo and Yokohama,

present strong investment opportunities due to ongoing redevelopment and high demand.


Market Trends:

The rising costs of labor and materials are likely to continue driving up property prices,

particularly for apartments and detached houses near transport hubs.


Future Outlook:

The competition for land in prime locations is expected to intensify,

further pushing up prices.


Investors should consider the impact of exchange rates and interest rates on their purchasing power.

For those involved in real estate transactions, it is crucial to monitor these trends

and consider the long-term potential of properties in rapidly appreciating areas.

Understanding the driving factors behind land value increases can help in making informed investment decisions and anticipating market shifts.




The 2024 land value data shows significant increases in the Kanto region, particularly in Tokyo, Kanagawa, Chiba, and Saitama, due to economic recovery

and redevelopment.

For foreign investors, these trends indicate strong investment opportunities in the Kanto region and other rising areas.

Understanding the factors driving land value increases and expert insights can help in making informed decisions in the real estate market.


*  Regional data for each prefecture (from NHK)






Toshihiko Yamamoto Real Estate Investment Consultant, Author, and Founder of Yamamoto Property Advisory, Tokyo

Licensed Real Estate Broker (Japan), CCIM, MBA


Toshihiko specializes in assisting foreign companies and individuals in purchasing, managing, and selling properties in Japan. 

He holds a Bachelor’s degree in Economics from Osaka Prefecture University and an MBA from Bond University, Australia.

Discover Toshihiko’s expertise in his book,

“The Savvy Foreign Investor’s Guide to Japanese Properties: How to Expertly Buy, Manage, and Sell Real Estate in Japan,”

available now on Amazon, iBooks, and Google Play.

Please connect with us via social networks including Instagram, WhatsApp, and LINE for more information and assistance.





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