The National Tax Agency of Japan announced the “2024 Roadside Land Prices” on July 1. The report indicates that Japan’s roadside land prices have increased for three consecutive years, reflecting the country’s economic recovery from the pandemic. This value represents the assessed price per square meter of land adjacent to major roads across the country as of January 1 every year, used to calculate inheritance and gift taxes.
TSMC Effect: Kikuyo Town, Kumamoto Sees 24% Increase, 2nd Highest in Japan
The largest increase in roadside land prices in Kumamoto Prefecture was in Kikuyo Town, specifically along the Ken-Dō Sumiyoshi Kumamoto Line in Hikari no Mori 3-chome. The price reached 155,000 yen per square meter, a 24% increase from the previous year, making it the second-largest increase in Japan and a 1.5 times rise over the past two years.
Kikuyō Town, Kumamoto (Ken-Dō Sumiyoshi Kumamoto Line)
Average Roadside Land Price per Square Meter:
- 2024: 155,000 yen (🔺up 24% from last year)
- 2023: 125,000 yen (🔺up 19% from last year)
- 2022: 105,000 yen
This substantial increase is primarily attributed to the presence of TSMC in the area. The completion of the new factory has led to increased traffic and demand for land for various uses, including offices and hotels. Plans are also in place to establish a new JR station and open a large-scale mall nearby. TSMC’s second plant in Japan is expected to begin construction by the end of this year. Even before this, other semiconductor companies have been inquiring about corporate housing in the area.
The highest roadside land price in Kumamoto Prefecture was found at Shimodori Arcade in Tetori Honmachi, Chuo Ward, Kumamoto City, at 2.06 million yen per square meter, up 1% from last year.
Average Land Prices in Japan Rose 2.3%, Third Consecutive Year of Increase
The average price of approximately 315,000 standard residential plots across Japan rose by 2.3% compared to the previous year. This increase was the largest since the current calculation method was introduced in 2010. In Tokyo, both office and residential properties saw increased demand, with the average price in the metropolitan area rising by 5.3%, a 2.1% increase from the previous year. The most expensive land price in Japan remains in Tokyo, in front of the stationery store “Kyukyodo” in Ginza 5-chome, Chuo-ku, at 44.24 million yen per square meter, up 3.6% from the previous year.
