Japan's average land price rises for fifth straight year

Japan's average land price rose 2.8% from a year earlier as of Jan. 1, marking the fifth straight year of increase, the land ministry said Tuesday.

The Ministry of Land, Infrastructure, Transport and Tourism announced on Tuesday, March 17, 2026, that Japan's average land price stood 2.8% higher as of January 1 compared to a year earlier. This marks the fifth consecutive annual rise. The data, published by the land ministry, highlights ongoing trends in the Japanese real estate market amid keywords such as Tokyo tourism, BOJ, earthquakes on the Noto Peninsula, Ishikawa earthquake, inflation, and housing. The nationwide average underscores steady growth without specifying regional breakdowns in the available report.

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Tokyo Stock Exchange traders celebrate as Nikkei hits record 54,364.54, driven by election speculation and weak yen.
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Japan's Nikkei stock average hits record high above 54,000

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On January 14, 2026, Japan's Nikkei stock average surged to a record high of 54,364.54. Speculation over a snap election by Prime Minister Sanae Takaichi fueled hopes for expanded fiscal stimulus, while a weakening yen boosted exporters. Meanwhile, bond yields rose amid fiscal concerns.

The Real Estate Economic Institute predicts a 2.2% increase in new condominium supply in the Tokyo metropolitan area for 2026 compared to the previous year. It expects 23,000 units across Tokyo, Kanagawa, Saitama, and Chiba prefectures, with notable growth in western Tokyo and Chiba. Meanwhile, supply in central Tokyo is projected to decline.

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Japan's 10-year government bond yield reversed course and edged higher on Tuesday following a moderately firm outcome at a same-maturity bond auction. The yield rose 0.5 basis points to 2.12%. Markets remain concerned that the Bank of Japan is lagging in addressing inflation risks, anticipating further rate hikes.

Government data showed Japan's household spending rose 2.9% year-on-year in November, defying forecasts of a 0.9% decline. The increase, driven by automobile-related expenses and dining out, indicates a steady recovery in private consumption.

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Japan's Q4 2025 GDP was revised upward to 1.3% annualized from the preliminary 0.2% reported on February 16, driven by strong business spending. January household spending on goods and private services held steady despite a year-on-year drop, with contained retail gasoline prices easing inflation. Analysts now expect the Bank of Japan to hold rates in April and hike in June.

Sake breweries across Japan are struggling to fund purchases of sakamai rice, whose 2025 harvest prices have risen 1.5 to 2.3 times over the previous year. The National Tax Agency is launching a pioneering support initiative to build direct partnerships between breweries and farmers, ensuring a stable long-term supply.

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Japan's real gross domestic product grew at an annualized rate of 0.2% in the October-December quarter of 2025, falling short of market estimates. Preliminary data from the Cabinet Office showed a 0.1% quarter-on-quarter rise, marking the first positive growth in two quarters. The full-year growth rate for 2025 reached 1.1%, the highest since 2022.

 

 

 

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