Kansai Land Prices Continue Rising in Urban Areas

Land prices in Kansai, particularly in central Osaka and parts of Kyoto, have been on the rise throughout September 15, as reported in the benchmark land prices released by the Ministry of Land, Infrastructure, Transport and Tourism. The Deka Ebisubashi Building in Osaka's Minami district is the highest-priced commercial site, valued at 25.8 million yen per square meter. In Kyoto, a building south of JR Kyoto Station recorded the largest rate of increase.

Nishi Ward in Osaka has seen particularly strong gains in commercial land prices, making up seven of the top 10 locations. The planned opening of the Naniwasuji Line in 2031 is expected to improve access to central Osaka and Kansai International Airport, which is driving up demand in the area. Residential land prices have also shown strong gains around Tennoji and the Uemachi Plateau, as higher ground becomes increasingly attractive due to concerns over flooding and other natural disasters.

Experts anticipate that the upward trend in land prices will continue for now, but warn of the growing effects on housing costs and regional disparities. If land prices remain on the rise, landlords may eventually raise rents and increase fixed-asset tax burdens for property owners. Higher land values could also make it easier to generate gains when properties are sold.

While Japanese land remains relatively inexpensive compared to some overseas markets, foreign investors may continue to support prices in major cities. However, outside large urban centers, property may remain more affordable in regional areas if household incomes rise sufficiently. The growing divide between major cities and rural areas could become a broader social issue, with high housing costs already a major concern in Tokyo.