In real estate investment and land transactions, standard land prices are an extremely important factor in decision-making. However, many people may have questions such as “What are standard land prices?”, “How do they differ from published land prices?”, and “How can I find them?”
Standard land prices are land price indicators published by each prefecture based on the prefectural land price survey conducted annually.In 2024, the standard land price increased by 1.4% year-on-year on average nationwide, marking three consecutive years of positive growth. This trend indicates the vitality of the real estate market and provides important information for investors and landowners.
In this article, we will provide a comprehensive explanation of the basic concepts of standard land prices, the latest trends, and how to find them, covering all the information that real estate professionals need to know. Understanding appropriate land prices is the foundation for making wise real estate investment decisions.We hope you will read this article in its entirety and find it useful for your asset formation.
Standard land prices refer to the standard prices of land published as the results of prefectural land price surveys conducted by each prefecture based on the Land Use Planning Act. Officially called “prefectural land price survey prices,” they are surveyed on July 1 of each year and published in late September.
The survey targets approximately 20,000 “standard land plots” nationwide. These standard land plots are selected by each prefecture as representative of the standard land in their region and are designated for specific land uses such as residential, commercial, or industrial areas. The survey is conducted based on professional appraisals by real estate appraisers, with at least one appraiser evaluating each plot.
The most important feature of standard land prices is that they include areas outside urban planning zones. This allows for the monitoring of land price trends not only in urban areas but also in rural and suburban areas, making it a more accurate indicator of national land price trends.
In the real estate industry, published land prices are also used as an important indicator alongside standard land prices. While the two share similar characteristics, there are several important differences between them.
Item Standard Land Price Published Land Price
Survey Authority Prefectures National Government (Ministry of Land, Infrastructure, Transport and Tourism)
Reference Date July 1 January 1
Publication Date Late September Late March
Survey Area Includes areas outside urban planning zones Urban planning zones are the basic survey area
Number of Appraisers 1 or more 2 or more
Number of survey points Approximately 20,000 points Approximately 26,000 points
Legal basis Land Use Planning Act Land Price Disclosure Act
The most important difference is the survey date. While the published land price is based on January 1, the standard land price is based on July 1. This six-month time difference allows for the combination of both to track land price trends every six months.
Additionally, the difference in survey areas is important. The published land prices primarily target urban planning areas, so they focus on trends in urban areas. However, the standard land prices include areas outside urban planning areas, enabling a broader understanding of land price trends across a wider region. This characteristic makes standard land prices an important complement to published land prices.
Standard land prices serve multiple important purposes and roles in the real estate market.
The first purpose is to provide an indicator for general land transactions. Standard land prices serve as objective and reliable land price information, serving as a reference for individuals and businesses in determining prices for land transactions. Especially in areas with few transaction examples or land with special location conditions, they serve as an important benchmark for determining appropriate price levels.
The second role is to serve as a standard for calculating the acquisition price of land for public works. When acquiring land for public works such as road construction or urban development, standard land prices serve as an important basis for calculating appropriate compensation amounts. This ensures fair and transparent land acquisition.
The third purpose is to serve as a standard for real estate appraisal. When real estate appraisers evaluate individual properties, standard land prices serve as important comparative materials.In particular, comparison with standard land with similar location conditions and uses enables more accurate appraisal evaluations.
Furthermore, standard land prices are sometimes used as a reference for financial institutions' lending decisions and tax assessments. They are also used as a reference for collateral valuation when lending against real estate and for land valuation in the calculation of inheritance and gift taxes.
The 2024 standard land prices showed positive signs nationwide. According to the 2024 Prefectural Land Price Survey published by the Ministry of Land, Infrastructure, Transport and Tourism on September 18, the national average for all land use categories, residential areas, and commercial areas rose for the third consecutive year, with all categories recording higher increases than the previous year.
The average increase for all land use categories was 1.4% year-on-year, a significant increase from 0.8% in the previous year.This upward trend is attributed to a combination of factors, including the gradual recovery of the Japanese economy, the continued low-interest-rate environment, and the active redevelopment projects centered in urban areas.
Residential land saw an average increase of 0.8% year-on-year nationwide. This represents an expansion from the previous year's 0.5% increase, driven by robust residential demand in urban areas and growing interest in suburban residential areas due to the spread of telework.
The trend in commercial land was even more pronounced, with a 2.3% increase nationwide compared to the previous year. This is a significant increase from the 1.5% increase in the previous year, and is mainly attributed to the recovery of inbound tourism and increased investment in commercial facilities in urban areas.
Three major metropolitan areas showed a significant increase in standard land prices compared to the national average.In all three metropolitan areas—Tokyo, Osaka, and Nagoya—the average land prices for all land use categories, residential areas, and commercial areas all increased, with the rate of increase expanding from the previous year.
Region Average for all land use categories Residential areas Commercial areas
Tokyo metropolitan area +3.1% +3.6% +2.4%
Osaka metropolitan area +2.8% +2.9% +2.6%
Nagoya metropolitan area +2.2% +2.1% +2.4%
National average +1.4% +0.8% +2.3%
In the Tokyo metropolitan area, the increase in residential land prices was particularly notable, rising 3.6% year-on-year. This reflects the trend toward urban regeneration and increased demand for high-quality living environments. Additionally, some commercial land in the 23 wards of Tokyo saw a significant increase of 9.7% year-on-year, highlighting the renewed appeal of Tokyo as an international commercial hub.
In regional areas, the average for all land uses, residential areas, and commercial areas rose for the second consecutive year. Of particular note is that the average for all land uses in areas other than the four major cities (Sapporo, Sendai, Hiroshima, and Fukuoka) rose for the first time in 32 years since 1992. This is thought to be the result of a combination of factors, including the effects of regional revitalization policies, the expansion of companies into regional areas, and the recovery of the tourism industry.
In the four major regional cities, the average land prices for all land use categories, residential land, and commercial land have continued to rise for 12 consecutive years, but the rate of increase has slowed compared to the previous year. This is attributed to the fact that prices have reached a certain level due to the continuous rise in the past, and that the relative advantage has diminished due to the nationwide rise in land prices.
The rise in standard land prices in 2024 is the result of multiple economic and social factors.
Economic factors The most important factor is the Bank of Japan's continued monetary easing policy. The maintenance of low interest rates has kept the cost of financing real estate investment low, stimulating investors' appetite for real estate. In addition, the gradual economic recovery has improved corporate earnings, leading to increased investment in office space and commercial facilities, which is also an important factor.
Social factors include the significant impact of the recovery from the COVID-19 pandemic. In particular, the gradual recovery of inbound tourism has revived demand for real estate in tourist and commercial areas. Furthermore, progress in work-style reforms has increased demand for high-quality office and residential environments, which is also contributing to land price increases.
Regional factors are also important.For example, in Kikuyo Town and Otsu Town in Kumamoto Prefecture, the announcement of a factory construction project by TSMC, a major Taiwanese semiconductor manufacturer, has led to a sharp increase in the number of related companies moving into the area and demand for housing for employees, resulting in a significant increase in land prices in residential, commercial, and industrial areas.
In Onna Village, Okinawa Prefecture, the location's proximity to tourist attractions such as diving spots and demand from people moving in from other prefectures for residential purposes have led to the highest land price increase rate in the country.In Hakuba Village, Nagano Prefecture, the recovery of tourism demand, including foreign tourists, has led to active investment in hotel and condominium sites, resulting in the fourth-highest increase in commercial land prices nationwide.
The most reliable and comprehensive information on how to check standard land prices can be found on the official website operated by the Ministry of Land, Infrastructure, Transport and Tourism. The main search methods are explained in detail below.
Ministry of Land, Infrastructure, Transport and Tourism “Real Estate Information Library” is the most important tool for researching standard land prices. This website allows you to search both land price announcements and prefectural land price surveys (standard land prices) in one place. The search method is as follows.
First, click on “Data Search” under “Those Who Wish to View Land Price Information” on the homepage of the Real Estate Information Library. Next, select the prefecture and municipality of the area you wish to search, and specify the land use (residential, commercial, industrial, etc.). You can also set additional conditions such as distance from the nearest station or area size.
National Land Price Map is a website operated by the Asset Valuation System Research Center, where you can view four types of public land valuation information, including standard land prices, on a map.A key feature of this site is that you can intuitively check standard land prices on a map. When you select the area you want to search for on the map, the standard land price for that location is displayed, and you can easily compare it with surrounding areas.
You can also check detailed information on standard land prices on the official websites of each prefecture. Some prefectures provide more detailed analysis materials and explanations of regional characteristics than the Ministry of Land, Infrastructure, Transport and Tourism website. In particular, information on regional real estate market trends and future forecasts is often more comprehensive on prefectural websites.
To accurately understand and utilize standard land price data, it is important to understand the meaning and interpretation of the displayed figures.
Standard land prices are typically displayed as the price per square meter (yen/㎡). For example, “150,000 yen/㎡” indicates that the price per square meter of the standard land is 150,000 yen.In actual land transactions, the total amount is calculated by multiplying this unit price by the land area.
Variation rate is displayed in comparison with the same period of the previous year and is expressed as “+2.5%.” A positive value indicates an increase, a negative value indicates a decrease, and a larger number indicates a larger fluctuation. By examining the variation rate, you can grasp the land price trend in the area.
The standard land price data also includes detailed conditions of the land.This includes information such as distance from the nearest station, road width, building coverage ratio and floor area ratio, and surrounding environment. It is important to consider these conditions when comparing properties of interest.
Regional comparison When conducting a regional comparison, it is essential to compare properties with the same land use (residential, commercial, etc.). Comparing properties with similar location conditions and transportation convenience can also provide more meaningful analysis.
Standard land prices can be used as an important indicator for investment decisions in real estate investment. Understanding how to use them appropriately enables more accurate investment decisions.
When selecting an investment target area, analyzing trends in standard land prices is extremely effective. By analyzing the trends in standard land prices over the past few years, you can evaluate the growth potential and future prospects of the area. Areas that have shown a continuous upward trend are expected to see increased demand in the future and are considered attractive investment targets.
Standard land prices are also an important reference for determining fair market value. By comparing the standard land prices of properties under consideration with those of surrounding properties, it is possible to determine whether the asking price is at an appropriate level. However, standard land prices represent the prices of standard properties, so it is necessary to consider price differences due to individual property conditions (corner lots, irregularly shaped lots, road access conditions, etc.).
From a risk assessment perspective, analyzing the fluctuation patterns of standard land prices can help evaluate the price stability of a region.
Areas with large fluctuations have the potential for high returns, but also carry a high risk of price declines. Areas that have been steadily rising can be considered suitable for low-risk investments.
Standard land prices are also useful for determining the timing of sales. If the rate of increase in standard land prices has slowed down or if the prices have reached a relatively high level compared to the surrounding area, this can be used as an indicator for considering a sale.
Standard land prices are an essential indicator for real estate investment and land transactions. This indicator, which is surveyed by prefectures on July 1 each year and published in September, complements the published land prices and serves as the basis for accurately grasping land price trends nationwide.
In 2024, standard land prices rose 1.4% year-on-year, marking the third consecutive year of positive growth.This increase was the result of multiple factors, including the gradual economic recovery, continued low interest rates, the recovery of inbound tourism, and increased corporate capital investment. In particular, significant increases were observed in the three major metropolitan areas, and some regions in rural areas also saw their land prices rise for the first time in 32 years, confirming a nationwide trend of rising land prices.
For information on how to check standard land prices, you can efficiently obtain reliable information by utilizing official websites such as the Ministry of Land, Infrastructure, Transport and Tourism's Real Estate Information Library and the National Land Price Map. By correctly understanding how to interpret the data and comprehensively analyzing factors such as fluctuation rates and surrounding conditions, you can make more accurate investment decisions.
Going forward, key factors influencing land price trends will include changes in monetary policy, economic conditions, and demographic trends.
Continuously monitoring standard land price trends is essential for making appropriate investment decisions in the ever-changing real estate market.
When considering real estate investment or land transactions, we recommend combining analysis based on objective data such as standard land prices with comprehensive judgments by experts. At INA&Associates Co., Ltd., our experienced and knowledgeable professionals are dedicated to supporting your asset formation. Please feel free to contact us for a consultation.
Q1: Which should I refer to, standard land prices or published land prices?
A1: Standard land prices and published land prices are complementary, so we recommend referring to both. Published land prices are as of January 1, while standard land prices are as of July 1, so comparing the two allows you to grasp land price trends over a six-month period.Public land prices are useful for urban investment because there are many locations available, but standard land prices may be more useful for rural and suburban areas.
Q2: What are the characteristics of areas where standard land prices are rising?
A2: Characteristics of areas where standard land prices are rising in 2024 include improved transportation convenience, ongoing redevelopment projects, successful corporate recruitment, and recovery in tourism demand.In particular, significant increases are observed in areas with a concentration of semiconductor industries, inbound tourist destinations, and urban redevelopment areas. Additionally, suburban residential areas with good access to downtown areas are gaining attention due to the spread of telework.
Q3: How often should standard land prices be checked?
A3: Standard land prices are announced once a year, so we recommend checking them at least once a year.However, if you are actively investing in real estate or considering buying or selling, it is ideal to check them quarterly and monitor trends every six months in conjunction with the published land prices. We also recommend checking them whenever there are changes in important economic policies or announcements of large-scale development projects in the area.
Q4: What is the difference between the standard land price and the actual transaction price?
A4: The standard land price is the price of land under standard conditions, so there will be a difference from the actual transaction price.Generally, market prices tend to fluctuate within a range of approximately 0.8 to 1.2 times the standard land price, but they can vary significantly depending on factors such as location conditions, land shape, road access conditions, and market supply and demand balance. In individual transactions, it is important to use the standard land price as a reference and obtain a detailed appraisal from an expert.
Q5: Is it possible to predict future standard land prices?
A5: While it is possible to predict future standard land prices to some extent through analysis of past trends and economic indicators, accurate predictions are difficult. This is because multiple factors, including monetary policy, economic conditions, demographic trends, and urban planning, interact complexly. When making investment decisions, it is important to reference past trends while considering multiple scenarios and implementing risk management. Combining this with market analysis by experts can enable more accurate judgments.