Roadside land prices and market prices
On July 1, the National Tax Agency released the official roadside land prices for 2015.
The average nationwide variation for 2015 was -0.4% year-on-year, but the rate of decline shrank from last year is -0.7%. Looking at the highest roadside land prices in prefectural capitals, 21 cities posted increases, three more cities than last year, and major metropolitan areas such as Tokyo, Osaka and Aichi prefectures posted high year-on-year increase rates of over 10%.
Roadside land prices are often said to be approximately 80% of market prices, but it is not uncommon for land to be transacted at market prices around 1.5 to 2 times the roadside land prices in major urban retail area and around 1 to 1.5 times roadside land prices in other retail areas; There are even some areas where transactions are at 2 to 3 times roadside land prices or even higher.
Incidentally, looking at recent transactions of retail sites in Minato Ward, many of the transactions are 1.5 to 3 times that of roadside land prices.