Japan’s land prices fall as COVID-19 hurts tourism, domestic demand

  • National land costs -0.4% in yr to July 1
  • Residential land costs -0.5% vs -0.7% in earlier yr
  • Industrial land costs -0.5% vs -0.3% in earlier yr
  • Border closures, vulnerable call for weigh on assets costs

TOKYO, Sept 21 (Reuters) – Eastern land costs fell for the second one immediately yr as the rustic’s closed borders and state of emergency curbs to battle the coronavirus pandemic hit call for for brand new eating places and motels, an annual govt survey confirmed.

In an indication the pandemic is reshaping the financial system, alternatively, land costs for commercial spaces rose for the fourth immediately yr on booming call for for warehouses to top off on digital home equipment and different items catering to stay-at-home call for.

General assets costs on this planet’s third-largest financial system fell 0.4% within the yr to July after closing yr’s 0.6% decline, which was once the primary fall in 3 years, a land ministry survey confirmed on Tuesday.

Residential land costs, that have been falling for almost 3 a long time because of Japan‘s shrinking inhabitants, slid 0.5% after a nil.7% decline within the earlier yr, the survey confirmed.

The decline stands against this to a troubling surge in assets costs in lots of different industrialised countries equivalent to Australia, the place domestic costs rose a file 6.7% in April-June regardless of low financial expansion. read more

Industrial assets costs in Japan fell 0.5%, larger than a nil.3% drop a yr previous, because the pandemic pressured the rustic to near its borders to overseas vacationers and impose curbs on financial task.

In Osaka, Japan‘s second-biggest metropolitan house and amongst its hottest vacationer locations, they fell 0.6% to mark the primary decline in 9 years, the survey confirmed.

“We are proceeding to look costs fall as profitability plummets, call for shrinks and the outlook darkens because of the pandemic,” a land ministry reliable instructed a briefing.

Against this, commercial land, which is most commonly utilized by vegetation and logistic amenities, noticed costs upward thrust 0.8% national from a yr previous reflecting tough call for for items.

Each Rakuten (4755.T) and Amazon (AMZN.O), two of the most important on-line trade operators in Japan, introduced plans to open a number of distribution centres previous this yr given a endured growth for supply services and products right through the pandemic.

Japan‘s land costs had risen sooner than the pandemic thank you partially to a wall of cash pumped out via the central financial institution as a part of former premier Shinzo Abe’s “Abenomics” stimulus insurance policies, and a Hotel development growth to cater to an inflow of overseas vacationers.

The ministry surveyed 21,430 places national.

Reporting via Kantaro Komiya; Modifying via Kim Coghill

Our Requirements: The Thomson Reuters Trust Principles.