OSAKA –
Benchmark land prices released on September 15 showed continued gains in urban areas across Kansai, led by strong increases in central Osaka and parts of Kyoto, with experts expecting the upward trend to continue for the time being while warning of growing effects on housing costs and regional disparities.
The highest-priced commercial site in Kansai was the Deka Ebisubashi Building in Osaka’s Minami district, valued at 25.8 million yen per square meter.
In Kyoto Prefecture, a building south of JR Kyoto Station recorded the largest rate of increase.
Commercial land price rankings in Osaka showed particularly strong gains in Nishi Ward, which accounted for seven of the top 10 locations by rate of increase.
One factor is the planned opening of the Naniwasuji Line in 2031. The new railway is expected to improve access from the area to central Osaka and onward toward Kansai International Airport, helping raise expectations for Nishi Ward.
The district is also well positioned relative to major redevelopment projects, including Grand Green Osaka, which is scheduled to fully open next fiscal year.
Residential land prices also showed strong gains around Tennoji and the Uemachi Plateau area.
Experts said the higher ground has become increasingly attractive as concerns grow over flooding and other natural disasters. More prospective buyers are checking hazard maps before choosing a property, and elevated areas are increasingly being favored for perceived safety.
The Uemachi Plateau has long been one of Osaka’s prominent residential areas and includes neighborhoods known for schools and educational institutions, while also offering strong transport links.
The continued rise in benchmark land prices could eventually affect household expenses, although experts said rents are unlikely to increase immediately.
If land prices continue climbing, however, landlords may eventually raise rents.
Higher land values can also increase fixed-asset tax burdens for property owners, while at the same time making it easier to generate gains when properties are sold.
Experts expect land prices in major urban centers to remain on an upward trend for some time.
Japanese land remains relatively inexpensive compared with some overseas markets, which could continue attracting foreign investors and supporting prices in major cities.
The picture outside large urban centers is less clear.
Property may remain more affordable in regional areas if household incomes rise sufficiently, but widening differences between major cities and rural areas could become a broader social issue.
High housing costs are already a major concern in Tokyo, and similar pressures could increasingly emerge in Osaka and other parts of Kansai if urban property prices continue to rise faster than incomes.
The growing divide also raises questions for government and local authorities over how to maintain affordable housing and prevent excessive concentration of population and services in major cities.
As rural populations decline, there are also concerns that essential infrastructure such as hospitals, railways and other public transportation could become harder to maintain.
Experts said policies aimed at narrowing the gap between rising property values and household incomes will become increasingly important if the current trend continues.
Source: YOMIURI
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