"We have started to see the recovery of the real estate market. Land sites with good locations are showing signs of strengthening"
- Kazuhiro Himeno, director of the land price research division at the land ministry
Land prices in almost two-thirds of Japanese major urban areas soared in the second quarter, boosted by rising real estate investment appetite and stronger demand for residential properties, as investors are getting more confident about Japan's economic outlook. The Ministry of Land, Infrastructure, Transport and Tourism said values rose at 99 locations in the three months ended July 1, up from 80 land sites a quarter earlier. Prices stagnated in 41 areas, compared with 51 in the previous survey, while only 10 areas recorded a drop in prices, almost twice less than in the preceding quarter.
Since the announcement of the BoJ's stimulus programme in April, policymakers have injected $278 billion into the financial system, pushing the domestic currency significantly lower and boosting both exports and the nation's banking industry. These measures have led to a 50% surge in sales of offices, warehouses and retail space, while housing start jumped for a 10th consecutive month in June, posting the longest streak in 16 years. Amid Abe's and Kuroda's bold statements and pledges to revive the world's third largest economy as soon as possible, house prices are expected to rise even further.
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