| Section 2 |
Features of, and Reasons for, Land Price Trends in the Metropolitan Areas Shown in Published Land Prices in 2002 |
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In relation to land price trends in Japan for the year 2001, based on the results of published land prices in 2002, prices of land for residential properties declined by 5.2% on the previous year (a decrease of 4.2% in the previous year) and prices of lands for commercial properties declined by 8.3% on the previous year (a decrease of 7.5% in the previous year). The following features stand out when focusing on the three metropolitan areas.
| (1) | With regard to lands for residential properties, |
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| [1] | in the Tokyo area, |
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| - | The extent of the decline in land prices increased in more than half of the areas,
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| - | In the Wards Area in Tokyo, however, the extent of the decline has decreased for three consecutive years and in the Central Wards Area in Tokyo, in particular, land prices are almost leveling off,
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| - | In all points of land in Shibuya ward, and in almost all points of land in Minato ward, land prices increased or leveled off. In Minato Ward, overall land prices have increased for two years; and in Shibuya Ward land prices leveled off for the first time in 14 years, and
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| - | In the Ward Area in Tokyo, in 10 wards, including Meguro ward, Ota ward and Koto ward, there were points of land which land prices either increased or leveled off, and this trend came to be widespread in these areas. Also, in "Near Tokyo Area in Saitama Prefecture" and in "Near Tokyo Area in Chiba Prefecture", the number of points of land which leveled off in terms of land prices increased in Saitama City and there also emerged points of land which became leveled off. |
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| [2] | in the Osaka area, |
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| - | In all areas the extent of land price decline increased, except in the Central Six Wards in Osaka City where the extent of land price decline was decreased for two consecutive years. |
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| [3] | in the Nagoya area, |
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| - | In all areas the extent of land price decline increased, but compared to other regional areas, rates of land price decline were smaller. |
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| (2) | With regard to lands for commercial properties, |
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| [1] | In the Tokyo area, |
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| - | In most areas, the extent of the decline in land prices diminished. In the Central Wards Area in Tokyo, in Minato ward, Chuo ward and Shibuya ward - there was an increase in the number of points of land where land prices either improved or leveled off, and
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| - | In Tachikawa City and Ebina City, etc. there were also points of land where land prices increased. |
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| [2] | In the Osaka area, |
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| - | The extent of land price decline increased in more than half of the areas. In the Central Six Wards in Osaka City, the extent of land price decline has diminished over the last two years although it was still more than 10%. In part of points of land in Osaka's high dense commercial areas we have observed a significant decrease in the extent of land price decline. |
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| [3] | In the Nagoya area, |
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| - | In most areas, the extent of the land price decline increased, but in Nagoya City, at points of land where published land prices increased last year, land prices either continued to increased or leveled off. |
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| (3) | Nationwide features |
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| [1] | Land price trends differ from situation to situation, and are affected by such factors as regional economic conditions and the status of each point of land. There were areas which increased the existing number of points of land where land prices either went up or leveled off ; and areas where new points of land emerged in which land prices either increased or leveled off.
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| [2] | The balance of supply and demand of land was affected by a slowing down of corporate activity, deteriorating of employment conditions and reductions in income caused by deteriorating economic conditions. |
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In relation to conditions in the three metropolitan areas,
| (1) | With regard to lands for residential properties, |
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- | As background of this significant increase in the number of points of land where the extent of land price decline diminished and leveled off, it is pointed out that the perception by potential purchasers of reasonable prices and redevelopment projects caused the continuous movement of people returning to central areas and steady demand for condominium apartments. Also in areas other than in the Central Wards Area in Tokyo, there emerged points of land where land prices leveled off where new railway lines have developed and where conveniences are excellent,
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- | In the suburbs, in remote areas where commuting to work is not easy, a steep decline in land prices has been observed, mainly in areas which suffers from traffic-related inconveniences, and
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- | As background of diminishing of the land price decline in the Central Six Wards in Osaka City, with the perception by potential buyers of reasonable prices, we have observed that there is a movement of people returning to central areas, and that the demand for condominium apartments has been steady. |
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| (2) | With regard to lands for commercial properties, |
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- | In the Central Wards Area in Tokyo, the number of points of land, where the land prices have increased or leveled off has grown in the high dense commercial areas, in areas which have promoted new locations of overseas brand shops, and in areas where redevelopment or development of traffic infrastructure has been promoted,
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- | In areas other than in the Central Wards Area in Tokyo, there emerged points of land where land prices increased or leveled off where large redevelopment was promoted near railway stations,
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- | In high dense commercial areas in the Osaka area and in the Nagoya area, points of land were observed where the extent of land price decline widely diminished, and where land prices increased or leveled off, in areas which improved the ability to pull in customers through new locations of overseas brand shops and redevelopment, and
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- | Continued huge declines in land prices persisted in central areas severely affected by deteriorating economic conditions and where locations are considered inferior because of narrow streets and other disadvantages. |
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Chart 4-2-1 Residential Land Price Trends in the Three Metropolitan Areas
Chart 4-2-2 Commercial Land Price Trends in the Three Metropolitan Areas
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