Roadside Land Prices FY2022

Roadside Land Prices FY2022: 
National Average Up for the First Time in Two Years

The National Tax Agency on July 1 announced the roadside land prices for FY2022, which are used as the basis for calculating inheritance tax and other taxes. 

The national average of the standard residential land assessment value rose 0.5% from a year earlier, which was the first upward shift in two years. The previous year (2021) recorded a 0.5% decline. The average in Kyoto Prefecture, which had dropped due to the COVID-19, also turned upward for the first time in two years, reflecting expectations for a recovery in tourism and other factors.

While no prefecture recorded an increase of 5% or more in 2022 (as in 2021: 0 prefecture), the number of prefectures with an increase of less than 5% was up to 20 (7  in 2021). The number of those with a rate of decline of less than 5% was down to 27  (39 in 2021).

​The National Tax Agency calculates the value per square meter of land facing a major road as of January 1 of each year, and this value is the basis for calculating inheritance and gift taxes.

The highest roadside land price in prefectural capitals was Ginza 5-chome, Chuo-ku, Tokyo, on Ginza Chuo Street at 42.24 million yen per square meter (down 1.1% from the previous year), which topped the land price list for the 37th consecutive year. In second place was Kakuda-cho, Kita-ku, Osaka City, on Midosuji Street at 18.96 million yen (down 4.0%), and in third place was the land  facing the street in front of the Yokohama Station West Exit Bus Terminal (Minami-Saiwai 1-chome, Nishi-ku, Yokohama City) at 16.56 million yen (up 3.0%) . The ranking of the top three remained unchanged, and of the top 10 cities, the land price increased in 6.

In Kyoto Prefecture, the average of 7,856 locations rose 0.2% compared to last year. Last year marked the first decline in seven years due to the COVID-19, but this year the market has picked up. ​This is believed to be due to anticipation of a recovery in tourism after the spread of COVID subsides and the growing demand for condominiums.

Under the jurisdiction of the 13 taxation offices in the prefecture, the highest roadside land prices, which are the highest in terms of assessed value, rose in five locations, remained unchanged in six locations, and fell in two locations.

The largest increase was on Shijjo Street in Otabi-cho, Shimogyo-ku, at 6.73 million yen, up 3.1% from last year. This was the highest assessed value for the 31st year in a row. The next highest were 6.48 million yen on Kawaramachi Street in Yoneya-cho, Nakagyo-ku, up 3% from last year, and 740,000 yen on Shijo Street in Saiin Takayamaji-cho, Ukyo-ku, up 2.8%. On Shijo Street, Takayamadera-cho, Saiin, Ukyo-ku, the land price rose 2.8% to 740,000 yen.

References:
https://www.re-port.net/article/news/0000069562/
https://www3.nhk.or.jp/lnews/kyoto/20220701/2010014734.html

路線価図
https://www.rosenka.nta.go.jp/index.htm