No surveyed district recorded a decline
The Ministry of Land, Infrastructure, Transport and Tourism said all 44 high-use districts covered by its first-quarter 2026 Land Price LOOK survey recorded price increases between January 1 and April 1. None were flat or lower. Forty-two districts rose within the 0%-3% range and two rose by 3%-6%. All surveyed residential districts have now increased for 16 consecutive quarters, while all commercial districts have risen for nine consecutive quarters. The survey covers 21 districts in the Tokyo region, 11 in Osaka, four in Nagoya and eight in regional cities, indicating that the upward trend is not limited to central Tokyo.
Condominium and hotel demand remain important drivers
MLIT attributed residential gains mainly to continued condominium demand in convenient locations with strong living environments. Commercial land was supported by redevelopment, demand for shops and hotels linked partly to domestic and international tourism, and resilient office demand. The figures therefore point to a market supported by several demand channels rather than housing alone. For overseas investors, this makes local redevelopment pipelines, hotel and retail demand, rent levels and future supply increasingly important alongside headline acquisition yields.
Higher asset values also mean higher entry costs
Rising land values can support the balance sheets of existing property owners, but they also raise acquisition costs for new buyers. If property prices rise faster than achievable rents, investment yields can compress even while market values continue to climb. Foreign and non-resident investors also face currency risk when measuring returns in their home currency. From fiscal 2026, MLIT shifted the Land Price LOOK publication schedule to a semiannual basis; the next release, covering the second and third quarters, is expected around late November 2026. The key question will be whether price momentum broadens further or begins to diverge by district.