Average Commercial Land Price

The Ministry of Land, Infrastructure, Transport and Tourism announced the average land price as of July 1, 2009. Due to the Lehman shock, commercial land prices dropped as well.

From Mainichi Newspaper "Average Land Prices: Nationwide Drop - Changing streets in Tokyo and Ginza, with low-priced stores opening due to increase in vacancies"

For the first time since this survey was started in 1975, the average land price of both residential and commercial land dropped in all prefectures in 2009. Areas with the ten highest rates of decline were commercial lands in Minato-ku in Tokyo, Fukuoka and Nagoya. In Tokyo, prices dropped by 20% to 30% in Ginza and surrounding areas. The drop in land prices are beginning to change the streets as well. For example, while foreign luxury stores drop plans of opening stores, many low-priced clothing stores are planning on opening stores.

Of commercial land in Tokyo, the drop in land prices stood out particularly in Shinbashi, Toranomon and Ginza, with the rates of decline at 19.0% - 28.5%. The MLIT's person in charge analyzes, "Economic conditions worsened the most from January to March, against which even strong brand power could not stand." The president of a real-estate company in Minato-ku indicates, "Compared to last spring which showed some sings of business recovery, the market rate of rent dropped by around 20%. Perhaps there are many places reducing the amount of rent through individual negotiations."

On a national level, the price of commercial land is high in Tokyo. The standard score is 111, which is higher than residential land (101). The high price in Tokyo stands out. Compared to residential land, the standard scores are high in Fukuoka and Miyagi, indicating that commerce is developing in these areas as the central cores.