Land price survey “decline” due to Corona impact “up” in some telework also September 29 17:31
In this year’s prefectural land price survey, “commercial land” turned to decline on the national average due to economic declines caused by the effects of the new coronavirus and a decrease in foreign tourists, and the decline in “residential areas” increased.
On the other hand, in response to self-restraint and telework, there are some areas where land prices rise due to rising demand, such as in Tokyo’s 23 wards and vacation homes in Nagano Prefecture, resulting in both a decline and an increase in the impact of the new coronavirus.
Tourist Attractions in Tokyo Land Prices Fall
It is a commercial area that was greatly affected by the new coronavirus in this land price survey.
In Tokyo, which was visited by many foreign visitors to Japan, the profitability of hotels and stores declined and land prices fell.
Of these, Asakusa, Taito-ku, Tokyo, rose significantly to 34.5% last year, but this time it turned into a decline of minus 0.5%.
In addition, the area with restaurants and shops in Kabukicho, Shinjuku-ku, Tokyo, also turned from 17.2% last year to minus 5.0%.
The downtown area lined with restaurants in Ginza, Chuo-ku, Tokyo, also fell the most in commercial areas in Tokyo, from plus 7% last year to minus 5.9%.
Tourists plummet in Asakusa, Tokyo
As the rate of increase in land prices in urban areas, mainly in Tokyo, has narrowed, in Asakusa, one of Tokyo’s leading tourist destinations, the effects of the new Coronavirus have already become more serious due to the decline in land prices.
NHK examined 120 hotels around Asakusa and found that at least a fourth of them were closed or closed.
In Asakusa, Tokyo, where the number of foreign tourists has been increasing rapidly in recent years, new hotels and inns have opened one after another in an eye to the Tokyo Olympics, and land prices in September last year rose 34.5% compared to the previous year around Asakusa 1-chome in Taito Ward, Tokyo, and the rate of increase was the highest in Tokyo’s 23 wards.
However, due to the influence of the new coronavirus, the number of tourists has decreased dramatically, and the land price has changed completely, such as turning into a decline even at the point where the rate of increase was highest last year.
When NHK interviewed 120 hotels and ryokans in the Asakusa and Raimon districts in Taito Ward that had been licensed to operate as of March, it was found that at least about a fourth of the 29 accommodation facilities were closed or closed due to severe management due to the new Coronavirus.
Atsumi Tsuji, president of the Asakusa Tourism Federation, said, “We have heard from many places that the new coronavirus is closed, and we see it as a serious impact. In addition to the inbound demand in recent years, there is an impression that the construction of hotels in an eye to the Tokyo Olympics has become a little excessive. In the future, it is necessary to consider how to rebuild with infection countermeasures.”
Osaka’s commercial areas Minami and Umeda reversed
Due to the spread of the new Coronavirus, foreign tourists have not come, and in Osaka’s commercial areas, land prices in minami buildings, which have been at the top for the second year in a row, have fallen, and Umeda’s buildings have returned to the top for the first time in three years.
The Sumitomo Corporation Shinsaibashi Building in Dotonbori, Minami, which was Osaka’s top land price for two consecutive years until last year, fell 4.5% to 23.3 million yen per square meter.
The land price of Minami continued to be high in inbound demand, and the land price of this building rose 45% from the previous year last year, but this time, a sharp decrease in inbound demand appeared in the land price.
On the other hand, the highest land price was 23.6 million yen per square meter, up 8.8% at the Grand Front Osaka South Building in Umeda, Osaka.
From the second place for the second year in a row, this time, it has returned to the top for the first time in three years.
The largest decline in commercial areas in Okuhida Onsen-go
In Okuhida Onsen-go, Takayama City, Gifu Prefecture, which recorded a 9.3% decline and was the largest decline in commercial areas nationwide, there are high expectations for individual tourists from Japan.
The bus center in Okuhida Onsen-go is a transit point connecting the center of Takayama City, Tokyo, Nagano, etc.
Before the spread of the new coronavirus infection, until around January, many foreign tourists and domestic group tourists visited for connections and breaks.
There are restaurants and souvenir shops at The Alps Kaido Hirayu, a commercial facility attached to the bus center. Foreign tourists accounted for about 60% of the customers, but since February they have been almost out of use.
Currently, sales are only 10% in restaurants and 30% in souvenir shops compared to the same period last year.
On the other hand, since individual tourists from Japan have recovered somewhat, souvenir shops are devising ways to place “Takayama ramen”, “Hida beef retort curry”, and local sake in prominent places in order to sell local sake to tourists from Japan, but it is not directly connected to sales yet.
Shuichi Matsumoto, manager of Alps Kaido Hirayu, said, “Before the spread of the infection, when there were many people from Hong Kong, Taiwan, etc., 400 customers came a day to eat and shop, but that became “zero”. We have relied on inbound services, but now only individual customers in Japan are moving, so we are devising ways to create a store. I want as many people as possible to come.”
Masayuki Ogida, Managing Director of the Okuhida Onsen Tourism Association, said, “Since February, there have been no foreign tourists, and there are few domestic customers and the impact has become serious. Especially in the coming winter months, there are no tourists from Asia who were visiting to see the snow, so I want to promote it so that Japanese customers can come.”
In some areas, such as vacation homes, demand is rising and land prices are rising.
In Karuizawa-cho, Nagano Prefecture, a popular resort with good access from the Tokyo metropolitan area, demand for vacation homes increased due to the spread of telework due to the effects of the new coronavirus, and land prices rose at four of the six survey sites in residential areas.
Of these, Karuizawa Nagakura Ando Minamihara, a 5-minute drive from JR Karuizawa Station, rose 6.9%, the highest rate of increase in Nagano Prefecture.
The range of the rise has also increased by more than two points from last year.
The villa in Karuizawa-cho is conveniently about one hour by Shinkansen from the Tokyo metropolitan area, it is cool in summer, and it is one of the leading resorts in the prefecture where you can enjoy skiing in winter.
Due to the influence of the new coronavirus, there is a growing demand to live away from urban areas where the population is dense while teleworking not only to the wealthy but also to salaried workers, and according to real estate companies in the town, the number of villa purchases has increased by about three times as much as usual after the declaration of emergency.
In addition, in Hakuba Village, Nagano Prefecture, which is popular among foreigners at ski resorts, land prices rose at two survey sites in commercial areas despite a decrease in foreign tourists due to the new coronavirus.
Among them, Hakuba Village Kitajo Nitta, which is lined with restaurants and pensions in the center of the village, rose 30.3% from last year, the fourth highest rate of increase in Japan.
Although the number of foreign tourists has decreased due to the effects of the new virus, it is thought that the firm demand for real estate for investment purposes, such as foreigners looking ahead to the so-called after-corona, such as the establishment of a new pension, is a factor.
In addition, as in Karuizawa-cho, the demand for villas to avoid densely populated areas is also seen as one of the factors, and according to local real estate companies, interest in apartment-type villas equipped with rental villas and telework facilities is also increasing.
Residential area Tokyo’s 23 wards rose 1.4%
Land prices in residential areas fell in 42 prefectures nationwide, but Tokyo’s 23 wards rose 1.4%.
Since June, there have been a number of housing manufacturers selling detached houses, mainly in central Tokyo, which is convenient for commuting and telework, exceeding the same month last year.
Of these, “Open Houses,” which sell detached houses mainly in central Tokyo, sold approximately 50% in July compared to the same month last year.
As the company spends more time at home due to the new coronavirus, the demand for detached houses, which are easier to secure space for work, is increasing compared to condominiums.
A man in his thirties in Tokyo who visited the showroom said, “I wanted to build a house because I was going to have a baby. Because of the influence of Corona, I have more opportunities to work from home, so I think it would be nice if I had a space where I could work properly.”
In June, Yuji Harada and his wife, Minami, who had just moved to Arakawa-ku, Tokyo, bought a house in Arakawa-ku, Tokyo, and looked for a house close to their workplace in order to reduce the risk of infection.
Mr. Harada said, “I do telework, but I have to go to work, so I thought that commuting time would be longer in the suburbs, so I chose a detached house in the city center because of access and convenience.”
Kaoru Yato, General Manager of Sales Promotion Department at Open House, said, “The increase in telework is a very tailwind to door-to-door sales. On the other hand, there are not many cases where couples become completely telework, so I think that the need for housing in the city center, which is accessible when going to work, will continue to be high.”
Industrial areas Prices rise, such as areas with easy access to highways
In industrial areas, demand for logistics facilities is increasing due to the expansion of online shopping, and prices are rising in areas where highways are easily accessible.
A major online shopping and food-related company is located as tenants at a distribution center created in Kawaguchi City, Saitama Prefecture by Daiwa House Industry Co., Ltd., a major housing company.
It is close to highway interchanges and is convenient for delivery and commuting, so other companies’ logistics facilities are also concentrated.
The use of online mail order increases with so-called “nesting consumption”demand for logistics facilities is increasing due to the need for manufacturers to stockpile parts and products.
For this reason, the company revised its management plan in June and increased the cost of investing in logistics facilities by 300 billion yen, or 85%, from the previous plan.
Kazuki Inoue, Director of the D Project Promotion Office at Daiwa House Industry, said, “The logistics industry has many competitors and new entrants, and strong investment is expected in the future. We would like to actively invest in areas where facilities have not yet been developed.”
Expert “Realizing the Effects of the New Coronavirus”
Regarding the results of the survey, Takeshi Ide, Senior Research Fellow at Tokyo Kantei, a real estate research firm, pointed out that “in areas dependent on tourism and the restaurant industry, the rate of decline was large, even in residential areas that were expected to have little impact, and I realized once again the effects of the new coronavirus.”
On top of that, “because condominiums are expensive in the city center, there is a movement to choose a detached house where the price is stable in the city center even if it is narrow, and there is no movement to move the residence to the suburbs in this land price. In the future, telework will be closely related to the degree of convergence of viruses, such as how well it will take hold, so it will be a little earlier to move to the suburbs by re-renting or replacing houses. Now, there are aspects that demonstrate the superiority of the city due to the ease of shopping and the ease of living.”
Regarding industrial land, he said, “In the last few years, many logistics facilities have been built, but there is a growing need for colona nests, so there may be growth in the future.”
Regarding the outlook for land prices in the future, he said, “I think that regions that are strongly dependent on tourism may not recover from domestic demand 1. I would like to keep an eye on the impact in the future.”