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The
national average of government-assessed roadside land prices used
for taxation this year rose 0.9% from a year earlier, the first
pickup in 14 years.
The latest land price data, released Aug. 1 by the National Tax
Agency, shows the upturn in property prices, which started earlier
in Tokyo and has spread to Osaka, Nagoya and other major cities.
Rising demand for office space is pushing down vacancy rates in
Tokyo, Nagoya and other big cities. In prestigious areas of Tokyo,
office rents are even beginning to rise.
A tighter job market and bigger paychecks are fueling housing
purchases. New condominium construction is increasing in suburbs as
well as city centers. Some major developers are snapping up prime
properties in expectation of higher prices.
One key catalyst for the property market's recovery has been the
growth of real estate investment trusts (REITs) and specialized
private equity funds.
The land price trend, however, reflects the polarized nature of the
current economic rebound. Among the 47 prefectural capitals, 15
cities, mainly regional economic centers with large populations, saw
prices of prime real estate rise.
In sharp contrast, the average land price in nine prefectures,
including Iwate, Fukushima and Kumamoto, fell at a faster pace than
in the previous year
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