Where Did Property and Land Prices Rise the Most in Japan in 2024?

In 2024, Japan’s property and land market has continued to experience growth, with some regions seeing significant price increases driven by a mix of local demand, government policies, and broader economic factors. This growth has not been uniform across the country, with certain areas—particularly in major urban centers and high-demand tourist regions—experiencing stronger upward price pressure. The following report outlines the key areas where property and land prices rose the most in Japan in 2024.

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Tokyo: The Heart of the Market

As Japan’s economic and financial capital, Tokyo continues to be the dominant driver of the country’s property market. In 2024, property prices in Tokyo saw a notable increase, especially in central wards such as Minato, Chiyoda, and Shibuya. These areas have benefited from continued demand from both domestic and international buyers, buoyed by Japan’s strong recovery post-pandemic and the consistent inflow of business investments and foreign professionals. The high-end residential market saw price growth due to limited supply, while commercial property prices surged due to increasing demand for office spaces, particularly in districts with excellent transport links.

The demand for luxury properties in central Tokyo has been particularly strong, with international buyers targeting ultra-high-end apartments and villas. The area around Roppongi and Akasaka has seen premium residential prices rise, driven by an influx of expatriates, business executives, and ultra-wealthy individuals seeking secure, accessible, and globally connected locations. This trend, along with a continued focus on infrastructure development and the Tokyo 2020 legacy, has resulted in Tokyo's real estate market maintaining a strong upward trajectory.

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Osaka: A Surge in Commercial and Residential Prices

Osaka, Japan’s second-largest metropolitan area, experienced a significant rise in property prices in 2024, particularly in Umeda, Namba, and Shinsaibashi. Osaka’s property market has been buoyed by both domestic buyers and foreign investors seeking to capitalize on the city’s strong economic performance and its growing role as a regional business hub. The city’s development into a tech and innovation center, along with its proximity to Kansai International Airport, has made it an increasingly attractive location for both residential and commercial real estate investment.

In addition to this, Osaka has seen a revival of tourism, especially post-pandemic, with areas like Dotonbori and Universal Studios Japan drawing increasing numbers of international visitors. This has bolstered the demand for both short-term rental properties and long-term residential homes, further driving up land and property prices in key urban districts. Commercial real estate in Osaka also experienced growth, particularly in office spaces and retail properties, driven by a renewed interest in the city’s central business districts.

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Niseko: A Booming Ski Resort Market

The property market in Niseko, located on the northern island of Hokkaido, saw some of the sharpest price increases in Japan in 2024. Niseko, already well-known as one of the top ski resort destinations globally, continued to see strong demand from both international and domestic buyers, particularly for vacation homes, luxury chalets, and rental properties. The area’s appeal as a year-round resort destination, with its world-class skiing in the winter and summer outdoor activities such as hiking and golf, has driven a steady increase in property values.

In addition to the natural beauty and recreational opportunities, the rise in Niseko's property prices has been fueled by continued infrastructure development, including improvements to transportation links and the expansion of luxury accommodations. The influx of foreign buyers, particularly from Australia, Hong Kong, and Southeast Asia, has helped push prices even higher. The growing appeal of Niseko as an international luxury destination, paired with limited land availability, has created a competitive market where both land and property prices continue to climb.

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Fukuoka: Growth in Residential and Commercial Properties

Fukuoka, the largest city on Japan’s southern island of Kyushu, experienced robust growth in property prices in 2024, particularly in Hakata and Tenjin, the city’s two main commercial and residential districts. Known for its favorable business environment, high quality of life, and strategic location as a gateway to the rest of Asia, Fukuoka has become a magnet for both domestic investors and foreign capital. In recent years, the city has attracted a growing number of young professionals, entrepreneurs, and foreign expatriates, driving up demand for housing.

Fukuoka’s property market has also benefited from the government’s regional revitalization policies, which have helped to improve infrastructure, transport connections, and local amenities. These factors have made Fukuoka increasingly attractive to both real estate developers and investors. As a result, land prices in Fukuoka’s central areas have seen steady increases, particularly in prime locations near transportation hubs like **Hakata Station**. The city’s real estate sector has thus become one of the most promising in Japan, with significant demand for both commercial spaces and residential properties.

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Resort Towns: Hakuba and Karuizawa

Several resort towns across Japan have seen substantial price increases in 2024, with Hakuba and Karuizawa standing out as two of the most notable examples. Hakuba, located in the Japanese Alps and famous for its ski resorts, has experienced a boom in both property prices and land values, driven by a combination of increased demand for vacation homes and a surge in interest from foreign buyers. The area’s close proximity to Nagano City and its appeal as a year-round destination for outdoor activities such as skiing, hiking, and mountain biking have made it an attractive market for both investors and second-home buyers.

Similarly, Karuizawa, a resort town known for its cool climate, luxury villas, and proximity to Tokyo, has also seen a sharp rise in property prices. The town is popular among affluent Tokyo residents looking for a weekend retreat and retirees seeking a peaceful environment. The combination of scenic beauty, excellent infrastructure, and the convenience of being just a short bullet train ride from Tokyo has made Karuizawa a sought-after location for high-net-worth individuals, pushing up both residential and commercial property prices.

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Our Thoughts

In 2024, Japan's property and land market experienced significant price growth in a few key regions, driven by a combination of factors including economic recovery, increased demand for luxury and resort properties, and government investments in infrastructure. Tokyo and Osaka remain the primary centers of growth, benefiting from strong domestic and international demand for both residential and commercial properties. Meanwhile, areas like Niseko, Fukuoka, and prominent resort towns such as Hakuba and Karuizawa have seen sharp increases in prices, fueled by rising tourism, infrastructure improvements, and the appeal of second-home ownership. As these trends continue into 2024 and beyond, investors should consider these regions as key opportunities for long-term growth in Japan’s dynamic real estate market.

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