Japan's land prices tumbled in 2012

Average land price in Japan dropped at a slower pace for the third year in the 12 months to January, as demand was spurred by record low interest rates and buying by real estate investment trusts, the Ministry of Land, Infrastructure, Transport and Tourism said Friday. Japan's land prices on average fell by 1.8% in 2012, compared to a 2.6% drop recorded a year ago, posting the smallest drop since prices posted a gain in 2008. The biggest increase was recorded in the Shirasagidai area in the city of Ishinomaki, where the average land prices rocketed 24% to 27,800 yen per square meter. Another report by the Association for Real Estate Securitization showed that real estate investment trusts acquired 1.03 trillion yen during the last year, the most since 2007. Latest data are reflecting the improvement in the property market, as investors' confidence were boosted by Shinzo Abe's pledge to revive the economy by any means necessary. 

"There are stronger signs of prices bottoming out," Akira Mori, chief executive officer of Mori Trust Co., Japan's most profitable closely held developer, said in a statement. "Mid- sized, high-quality properties are starting to be traded in the market, reflecting increased appetite and expectations for easing policies. REITs also have strong appetite to buy and we can see how that's starting to revive the market."