Land Transaction Trends Survey
On October 29, the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) announced the results of its land transaction trends survey in August 2015.
MLIT surveys major companies that appear to have a great influence on land market trends (listed companies or unlisted companies with capital of 1 billion yen or more) using the indicators of “judgments about the land transaction situation” and “judgments about land price levels.”
The diffusion index results for judgments about the current land transaction situation (“active” – “sluggish” ratio. A positive value indicates that there were more companies that responded with “active” than companies that responded with “sluggish”) show that all regions improved, with Tokyo at 29.2 points (up 5.5 points from last survey), Osaka at 25.6 points (up 18.5 points from last survey) and other regions at 0.0 points (up 14.3 points from last survey).
Tokyo has been positive since the August 2013 survey, increasing in this survey despite a slight dip in points in the last survey in February 2015. Forecasts of the land transaction situation in a year’s time, however, predict that Tokyo will decrease slightly.
Real estate transaction is active nationwide, with real estate prices on the rise and yield on the decline, so be sure to check these indicators every six months to monitor the future of the real estate market.