The national land, infrastructure and transport ministry reported on Sept. 19 that land prices in residential areas fell by an average 2.5 percent in the year to July 1, marking the 21st consecutive annual decline.
In commercial areas, land prices have fallen by an average 3.1 percent — a drop for the fifth straight year. Noteworthy is the fact that declines in land prices slowed down in residential areas of 39 prefectures and in commercial areas of 42 prefectures, compared with 22 prefectures and 31 prefectures, respectively, in 2011.
Movements in land prices generally reflect demographic changes and the economic conditions faced by local communities. Because local economies have weakened and the countryside is suffering from depopulation, land price appreciation across the board is unlikely. It must also be remembered that the attitudes of people and businesses towards future disasters is influencing land price movements, both upward or downward.