Japan's Roadside Land Values Hit Record High, Fueled by Tourism and Tech Industry Shifts

Japan's Roadside Land Values Hit Record High, Fueled by Tourism and Tech Industry Shifts

Yuki Tanaka
2 min read

Japan's Roadside Land Values Hit Record High, Fueled by Tourism and Tech Industry Shifts

Japan's roadside land values have experienced an unprecedented surge, driven by a tourism boom and changes in the global semiconductor market. The popular skiing and hiking destination, Hakuba, saw a remarkable 32.1% increase in land prices, marking the highest surge. Additionally, Kikuyo, a farming town with a new TSMC factory, came in second with a notable 24% rise in land values. At the national level, land values witnessed a 2.3% growth, the fastest since 2010. Tokyo's prestigious Ginza district has once again retained its title as the most expensive land for the 39th consecutive year. Factors such as inflation, a weak yen, and low borrowing costs have contributed to the revival of Japan's real estate market. The tax agency utilizes these land values to compute inheritance and gift taxes. Notably, Japan's efforts to bolster domestic chip production have attracted major players such as TSMC, which has plans for expansion in Kumamoto.

Key Takeaways

  • Japan's roadside land values experienced a record surge, propelled by a booming tourism industry and significant shifts in the semiconductor market.
  • Hakuba witnessed a substantial 32.1% surge in land prices, driven by its popularity as a skiing and hiking destination.
  • The farming town of Kikuyo saw a remarkable 24% increase in land values, influenced by the establishment of a new TSMC factory.
  • National roadside land values registered a notable 2.3% growth, marking the fastest increase since 2010.
  • Tokyo's Ginza district has maintained its status as Japan's most expensive land for an impressive 39th consecutive year.


Japan's surge in land values, propelled by tourism and semiconductor investments, has significant impacts on both local economies and global tech supply chains. The success of Hakuba and Kikuyo can be attributed to niche tourism and TSMC's expansion, respectively. While short-term gains include increased tax revenues and job creation, long-term implications involve the possibility of over-inflation and reliance on single industries. The enduring elite status of Tokyo's Ginza district reflects persistent urban wealth disparities. This trend has the potential to reshape Japan's economic landscape, influencing future investment and development strategies.

Did You Know?

  • TSMC (Taiwan Semiconductor Manufacturing Company)
    • TSMC stands as the world's most prominent independent semiconductor foundry, headquartered in Hsinchu, Taiwan. It holds a critical position within the global semiconductor supply chain by manufacturing integrated circuits and chips for various applications, including consumer electronics, automotive, and industrial equipment. TSMC's decision to expand in Kumamoto, Japan, highlights Japan's strategic endeavors to enhance its domestic chip production capabilities and solidify its position in the global semiconductor market.
  • Hakuba
    • Hakuba, situated in the Kitaazumi District of Nagano Prefecture, Japan, is renowned for its skiing and hiking offerings. Its hosting of several skiing events during the 1998 Winter Olympics has contributed to its popularity. The recent 32.1% increase in land prices can be attributed to the burgeoning tourism industry, with more tourists seeking to visit or invest in properties in this scenic and activity-rich area.
  • Ginza District
    • Ginza, located in Chūō, Tokyo, is famous for its luxurious shopping, dining, and entertainment establishments. It represents one of the most upscale and expensive shopping areas globally. The perpetual retention of Ginza's title as the most expensive land in Japan for 39 consecutive years underscores its enduring allure and economic significance in the country's real estate market. The high land values in Ginza affirm its status as a prime location for commercial and retail activities.

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