TOKYO, Jul 02 (News On Japan) –
Land costs, a benchmark for property valuation utilized in inheritance tax declarations, have seen important modifications this yr. Shibuya, at the moment present process in depth redevelopment, has ranked second nationally for the primary time.
Reporter: “Next Monday, a new building will open next to Shibuya Hikarie.”
Set to open on July 8 alongside Aoyama Street in Tokyo’s Shibuya, the brand new advanced constructing “Shibuya Axes” is a component of what’s being referred to as a “once-in-a-century” large-scale redevelopment in Shibuya.
In entrance of Shibuya Station’s Hachiko exit, high-rise buildings like “Shibuya Scramble Square,” which opened in 2019, have elevated in comparison with eight years in the past. This surge in growth is mirrored within the land value evaluations.
The National Tax Agency introduced in the present day that the land value in entrance of “QFRONT” in Shibuya is now second solely to “Kyukyodo” in Ginza, a primary since information started.
The nationwide common enhance in land costs this yr is 2.3%, the very best since 2010. Experts attribute this to the restoration in consumption pushed by inbound tourism and a weaker yen.
Kenichiro Yume, Chief Researcher on the Urban Future Research Institute, explains: “The number of foreign visitors has surpassed 2019 levels, and the weaker yen has significantly boosted per capita travel spending. As consumption recovers, demand for retail and hotel space increases, creating a cycle where higher tenant demand leads to rising real estate prices and land values.”
Asakusa, a well-liked vacationer vacation spot, recorded the very best price of land value enhance in Tokyo. Near Kaminarimon, international vacationers are a typical sight.
A rickshaw driver notes: “The number of overseas customers has significantly increased compared to last year. When I asked one customer why they came, they said ‘yen depreciation,’ and I thought ‘wow.'”
After the COVID-19 pandemic, land costs are rising once more. Experts predict continued upward tendencies.
Kenichiro Yume provides: “Compared to a year ago, the current exchange rate of 160 yen to the dollar represents about a 20% depreciation. This favorable condition, compared to 2019, will likely persist.”
The development of rising land costs is predicted to proceed.
Source: TBS