1. Report Overview
The Property Valuation Standards (Land Value Maps and Valuation Multiplier Tables) for Reiwa 7 (2025) are important public documents published by the National Tax Agency that serve as the taxation basis for inheritance and gift taxes. These standards apply to the valuation of property acquired through inheritance, bequest, or gift between January 1 and December 31, 2025. Land values represent the value per square meter of standard residential land facing major roads, expressed in thousand yen units, with inheritance tax land values generally set at approximately 80% of official land prices. This standard book includes land value maps and valuation multiplier tables for all 47 prefectures, serving as the basis for taxpayers to calculate the assessed value of land and other properties.
2. Key Points
The main highlights of the Reiwa 7 land values include a 2.7% year-on-year increase in the valuation standards for approximately 320,000 standard residential sites nationwide, marking four consecutive years of increases. This 2.7% growth rate is the highest since the current calculation method began in 2010, breaking records for two consecutive years. By prefecture, 35 prefectures showed increases (up 6 from the previous year), while 12 prefectures declined (down 4 from the previous year), indicating an expansion of areas with rising values. The highest-valued location nationwide remains in front of "Kyukyodo" at Ginza 5-chome, Chuo-ku, Tokyo, at 48.08 million yen per square meter (up 8.7% year-on-year), maintaining its top position for 40 consecutive years. Additionally, the Reiwa 7 land values reflect the impact of the Noto Peninsula earthquake for the first time, with significant declines recorded in affected areas.
3. Nationwide Land Value Trends
Looking at nationwide land value trends, the recovery from the COVID-19 pandemic has accelerated, with the surge in inbound tourism becoming a major factor in land price increases. According to the Japan National Tourism Organization (JNTO), the number of foreign tourists to Japan in 2024 reached a record high of approximately 36.87 million, and this recovery in tourism demand has pushed up land prices in commercial and tourist areas nationwide. Particularly in major metropolitan areas, steady increases continue, centered on commercial districts, due to the progress of redevelopment projects and recovery in office demand. Meanwhile, rising trends are also seen in tourist destinations and transportation hubs in regional cities, easing the polarization trend. Land price increases due to new industrial locations, such as semiconductor industry advances, are also notable, with Kikuyo Town in Kumamoto Prefecture recording an astonishing 22.6% increase.
4. Prefecture-by-Prefecture Characteristics
Looking at the rate of change by prefecture in detail, Tokyo recorded the highest increase rate at 8.1% (up 2.8 points from the previous year). Following this, major metropolitan areas such as Osaka, Aichi, and Fukuoka prefectures showed high growth rates. Prefectures with tourist destinations, including Hokkaido, Kyoto, and Okinawa, also showed steady increases, benefiting from inbound demand. Meanwhile, Nara Prefecture had the largest decline at -1.0%. In Ishikawa Prefecture, affected by the Noto Peninsula earthquake, there was a clear division within the prefecture, with significant declines in disaster-affected areas while areas with minimal damage like Kanazawa City maintained increases. Even in regional cities, rising trends are seen around Shinkansen stations, redevelopment areas, and regions with advancing corporate locations, directly reflecting the degree of regional economic revitalization in land values.
5. Detailed Analysis of Major Cities and Regions
The detailed analysis of major cities and regions confirms several notable trends. The largest increase rate among the highest land value points by tax office was 32.4% in Hakuba Village, Nagano Prefecture, reflecting the growing international popularity as a ski resort. This was followed by Furano City in Hokkaido at 30.2%, Asakusa in Tokyo at 29.0%, and Takayama City in Gifu at 28.3%, with famous tourist destinations occupying the top positions. On the other hand, "Asaichi Street" in Wajima City, Ishikawa Prefecture, declined by 16.7% due to fire damage from the Noto Peninsula earthquake, recording the largest decline rate nationwide among the highest land value points by tax office. In Kumamoto Prefecture, rapid land price increases occurred centered on Kikuyo Town due to Taiwan Semiconductor Manufacturing Company (TSMC) factory establishment, with ripple effects seen in surrounding areas. In Fukuoka City, commercial district land values have increased significantly due to large-scale redevelopment such as the "Tenjin Big Bang."
6. Analysis of Factors Behind Changes
Detailed analysis of factors behind land value changes reveals multiple factors working in combination. First, the complete recovery and expansion of inbound tourism is cited as the biggest factor. With foreign tourist arrivals in 2024 reaching record highs, demand for accommodation facilities, commercial facilities, and restaurants surged. Second, progress in large-scale redevelopment projects in urban areas has led to the concentration of offices and commercial facilities, pushing up land prices. Third, domestic relocation and new locations of manufacturing industries, particularly semiconductors, have increased land prices in industrial areas and surrounding residential districts. Fourth, the establishment of remote work has eased the concentration in city centers, increasing demand in some suburban and regional cities. Fifth, the continuation of monetary easing policies has activated real estate investment, with demand for investment properties supporting land prices.
7. Use and Significance of Land Values
Land values play an extremely important role as the standard for calculating the tax base for inheritance and gift taxes. In inheritance tax declarations, land valuation is calculated based on land values in principle, achieving fair and transparent taxation for taxpayers. By setting land values at approximately 80% of official land prices, a certain safety margin is ensured in inheritance tax valuation. Land values are also widely used as reference indicators for real estate transactions, serving as material for judging the appropriateness of transaction prices. Financial institutions often refer to land values as standards for real estate collateral evaluation, making them an important element in lending decisions. Furthermore, land value trends function as a barometer indicating regional economic trends and are utilized in municipal policy planning and corporate location strategies. The annual publication on July 1 is significant in providing information that reflects the latest land price trends.
8. Comparison with Previous Year
Comparing the land values for Reiwa 6 (2024) and Reiwa 7 (2025), several significant changes can be confirmed. The national average increase rate expanded by 0.4 points from 2.3% to 2.7%, accelerating the pace of increase. By prefecture, the number of prefectures with increases grew from 29 to 35 (up 6 prefectures), while the number with declines decreased from 16 to 12 (down 4 prefectures). This indicates that land price increases are spreading to regional areas. Tokyo's increase rate accelerated significantly from 5.3% to 8.1%, clearly showing recovery in major metropolitan areas. Tourist destination increase rates also generally expanded, with places like Hakuba Village and Furano City recording rates significantly exceeding the previous year. On the other hand, the impact of the Noto Peninsula earthquake was newly reflected, with significant declines occurring in disaster-affected areas, making the impact of natural disasters apparent. Land price increases due to industrial locations also became more pronounced than the previous year, with manufacturing investments centered on semiconductors having a major impact on land prices.
9. Future Outlook and Points of Interest
Several factors warrant attention regarding future land value trends. First, further expansion of inbound tourism is expected, and with the 2025 Osaka-Kansai Expo, land price pressure is likely to continue, particularly in the Kansai region. Second, semiconductor industry concentration will progress further, with new factory locations planned beyond Kumamoto Prefecture, and land price increases expected in related regions. Third, redevelopment projects in urban areas will continue, with steady trends expected to persist in major cities including Tokyo, Osaka, Nagoya, and Fukuoka. Fourth, it is necessary to monitor the impact of interest rate trends on the real estate market, as changes in monetary policy could affect land price trends. Fifth, rising natural disaster risks due to climate change raise concerns about impacts on land prices in high-risk areas. Sixth, declining population and aging may continue to put downward pressure on some regional areas.
10. Conclusion and Future Prospects
The Reiwa 7 land values clearly reflect Japan's economic recovery and structural changes. The national average increase of 2.7% indicates complete recovery from the pandemic while suggesting a transition to a new growth phase. Multiple factors including the rapid recovery of inbound tourism, industrial structure transformation, and progress in urban redevelopment are pushing up land prices, and this trend is expected to continue for the time being. However, as seen in the impact of the Noto Peninsula earthquake, natural disaster risks and regional disparities have also become apparent, requiring responses from the perspective of sustainable land use. Land values serve not merely as tax standards but as important indicators reflecting Japan's land use and economic activity, with their trends continuing to attract attention. It is hoped that policymakers, investors, and the general public will each appropriately utilize land value information to achieve better land use and asset formation. EOF < /dev/null