Land prices in Dotonbori and two nearby downtown districts in Osaka plunged by up to some 23% in January-September last year, a National Tax Agency survey showed Tuesday.
The land prices were apparently affected by a tumble in the number of inbound tourists amid the new coronavirus crisis.
The agency said the same day that it will revise down the 2020 roadside land prices of the three districts in the city for people who were subject to inheritance tax and other related payments in July-September last year.
This will be the first time for the agency to make revisions to roadside land prices in the middle of a year.
Located with convenient access to Kansai International Airport, Osaka attracted many tourists from Asian nations in recent years. The land prices in the city fell steeply after they kept rising through 2019, an official of the agency said.
The agency usually sets roadside prices, used to calculate inheritance and gift taxes, at some 80% of the land prices announced by the land ministry.
In July last year, the agency released roadside land prices as of Jan. 1, 2020. After that, the agency surveyed land prices on a quarterly basis, assuming that prices may drop amid sluggish economic activities in the country.
In the three districts in the city of Osaka, land prices calculated based on surveys by outside experts fell by about 23% as of September last year. The agency found that in some land deals, actual transaction prices were lower than the roadside land prices of the districts.
The agency is slated to announce in April whether roadside land price adjustments will be made for October-December 2020.
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