Five consecutive years of nationwide growth
Japan's Ministry of Land, Infrastructure, Transport and Tourism released its 2026 Prefectural Land Price Survey on September 15. Covering 21,466 locations and measuring values as of July 1, the survey found that nationwide average land prices increased for the fifth consecutive year across residential, commercial and all-use categories. Commercial land recorded faster appreciation than in the previous year, while the rate of increase for residential land and the overall average remained unchanged. The findings indicate that the upward trend continues, although the strength of growth differs between property uses.
Tokyo and Osaka outperform other markets
All three major metropolitan regions continued recording land price increases. Growth accelerated across residential, commercial and overall categories in the Tokyo and Osaka metropolitan areas. Nagoya, however, experienced slower growth across these categories. Outside the three major metropolitan regions, land prices rose for a fourth consecutive year, although appreciation moderated in Sapporo, Sendai, Hiroshima and Fukuoka. These differences demonstrate why national averages cannot adequately describe individual investment locations.
What the findings mean for overseas investors
For international buyers, the survey provides evidence of sustained appreciation in Japan's land market but does not establish that every property will generate higher rental income or resale profits. Central commercial districts, suburban residential neighborhoods and regional tourism destinations respond to different economic and demographic conditions. Acquisition decisions therefore require analysis of individual land values, permitted uses, comparable transactions and potential income. As prices rise in selected markets, the relationship between acquisition costs and sustainable investment returns will become increasingly important.