Japan nationwide roadside land prices climb for fourth straight year in 2025

Japan’s National Tax Agency announced on July 1st that the national average roadside land price, or rosenka, rose 2.7 percent as of January 1, 2025.

This marks the fourth consecutive year of growth and the sharpest increase since the current assessment method was introduced in 2010.

The rise reflects Japan’s ongoing post-pandemic economic recovery, particularly in urban centers and redevelopment zones.

Nationwide Trends Show Broad-Based Gains

35 of Japan’s 47 prefectures saw roadside land values increase - the highest number on record - while only 12 prefectures experienced declines, down from 16 the previous year.

Tokyo recorded the strongest growth, with prices up 8.1 percent year-on-year, compared to 5.3 percent in 2024. Analysts attribute the increase to robust demand in both residential and commercial areas, especially those with high pedestrian traffic and strong transport access.

Among the nation’s 47 prefectural capitals, 35 saw gains, while 11 remained flat and just one - Tottori - registered a decline.

Ginza Remains Japan’s Most Expensive Land for 40th Year

For the 40th consecutive year, the nation’s highest land valuation was recorded in Tokyo’s Ginza 5-chome.

Tokyo Kyukyodo frontage courtesy of the company homepage. Click here to see location on Google Maps.

The site, located in front of the long-established Tokyo Kyukyodo stationery store in Chuo Ward, saw its value rise 8.7 percent year-on-year to ¥48.08 million per square meter.

Tourism and Development Drive Up Nagano Land Values

2025 land value data for Japan's Nagano Prefecture shows average prices rising 0.6% for the second consecutive year, a trend powered by strong and accelerating localized growth.

Leading the way is the international ski destination of Hakuba, which is experiencing an unprecedented boom. Land values there soared by a national-record 32.4%, a surge attributed to a flood of inbound tourism, the development of new high-end hotels, and a corresponding demand for employee housing that is now spilling into neighboring communities.

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This positive trend extends to the prefectural capital, where prices in front of Nagano Station climbed 3.5%, accelerating from the 1.8% growth seen in 2024. Analysts credit this steady rise to major station-front redevelopment plans and a significant recovery in retail demand from both international tourists and local commuters.

Understanding Rosenka: Japan’s Tax-Based Land Valuation

The rosenka is a standard land valuation used by the National Tax Agency primarily for calculating inheritance and gift taxes. It is assessed annually on January 1st and announced on July 1st of any given year.

In rural and regional areas, the market rate, or what land can sell for, is a similar value as tax assessed rosenka values but in major metro areas, rosenka and market values deviate significantly in favor of market rates.

Despite the deviation, the rosenka trend lines can be used as an indicator of long-term price trends even in major metro markets; if the rosenka values are rising, so would market values and vice versa.

Sources: 

R.E. Port News (Japanese only)

Nikkei Shimbun (Japanese only; paywalled)