Japan land prices continue climbing in 2026 with Hakuba and Chitose leading the charge

Japan’s land prices rose for a fifth consecutive year in 2026, with growth accelerating in major metropolitan areas and resort destinations, according to the Ministry of Land, Infrastructure, Transport and Tourism (MLIT).

The ministry’s 2026 Official Land Price Survey, released on March 17, examined land values at approximately 26,000 locations nationwide as of January 1, 2026.

On a nationwide average basis, land prices rose 2.8% across all land uses, up from 2.7% the previous year. Residential land increased 2.1%, unchanged from the prior year, while commercial land rose 4.3%, accelerating from 3.9%.

Photo by Sora Sagano on Unsplash

As Japan’s economy continues a gradual recovery, land values have maintained an overall upward trajectory. Although trends vary by region and land use, price growth accelerated in the three major metropolitan areas, while regional markets also extended their positive momentum.

Housing Demand, Tourism, and Redevelopment Support Land Price Growth

Housing demand remained strong, particularly in central areas of the Tokyo and Osaka metropolitan regions, where robust condominium demand continues to support rising land prices. Resort destinations also posted strong gains, driven by demand for vacation homes, resort condominiums, and migration-related housing.

Commercial land prices also climbed as demand for retail and hotel properties in major cities remained firm. Office markets improved as vacancy rates declined, and rents increased, boosting investment returns. Tourism destinations benefiting from the rebound in inbound visitors, along with districts undergoing large-scale redevelopment projects, recorded particularly strong gains.

Japan Metropolitan Areas Continue to Lead Price Increases

Across the three major metropolitan areas, land prices rose 4.6% on average across all uses, up from 4.3% the previous year. Residential land increased 3.5%, while commercial land climbed 7.8%, marking the fifth consecutive annual increase across all categories.

The Greater Tokyo Area recorded the strongest gains, with overall land prices rising 5.7%, residential land 4.5%, and commercial land 9.3%. The Osaka metropolitan area followed with increases of 3.8%, 2.5%, and 7.3%, respectively, with both regions showing accelerating growth compared with the previous year.

By contrast, growth slowed in the Nagoya metropolitan area, where overall land prices rose 2.3%, residential land 1.9%, and commercial land 3.3%, all lower than the previous year’s increases.

Outside the three major metropolitan areas, land prices also rose for the fifth consecutive year. Regional areas recorded an average increase of 1.2% across all land uses, slightly lower than 1.3% the previous year. Residential land rose 0.9%, while commercial land increased 1.6%, unchanged from the prior year.

Among the four major regional cities - Sapporo, Sendai, Hiroshima, and Fukuoka - the pace of growth moderated. In other regional markets, overall and residential land prices rose at roughly the same pace as the previous year, while commercial land showed modest acceleration.

By prefecture, the number of locations posting positive price growth totaled 32 for residential land and 37 for commercial land.

Hakuba Records Japan’s Largest Residential Land Price Increase

The largest residential land price increase nationwide was recorded in Hakuba Village, where prices rose 33.0%. The internationally recognized alpine resort has seen sustained demand for vacation homes and resort condominiums, particularly from overseas buyers and domestic second-home purchasers.

Hakuba by Colin Blenis on Unsplash

Limited developable land in the mountain valley, combined with Hakuba’s growing reputation as one of Asia’s leading ski destinations, has intensified competition for residential land.

Semiconductor Investment Drives Surge in Chitose Commercial Land

The largest increase in commercial land values occurred in Chitose, where prices surged 44.1%. The jump reflects rapid economic transformation in the city driven by major industrial investment and infrastructure advantages.

Rapidus Chitose artist rendering courtesy of the company.  More information can be found here.

A key catalyst is the construction of a next-generation semiconductor manufacturing facility by Rapidus, a government-backed initiative aimed at restoring Japan’s leadership in advanced chip production.

The factory is expected to produce cutting-edge 2-nanometer semiconductors later in the decade, attracting suppliers, engineering firms, and logistics companies to the region.

Chitose’s strategic location further amplifies the effect. The city is home to New Chitose Airport, the primary international gateway to Hokkaido and a major hub for both passenger travel and cargo logistics.

As a result, commercial districts near JR Chitose Station and the airport corridor have seen strong development interest, with new hotels, offices, and mixed-use facilities planned to accommodate workers, suppliers, and business travelers linked to the semiconductor project.

Together, these factors - government-backed semiconductor investment, expanding supply-chain activity, and strong transport connectivity - have transformed Chitose into one of Japan’s fastest-growing commercial land markets in the latest survey.

Source:

R.E. Port News (Japanese only)