Land prices in Japan are falling for the second year in a row, according to Reuter. The sharp drop is caused by measures to combat the health crisis, including closed borders, which have limited demand for new restaurants and hotels, government data show.
Retail space fell 0.5 percent from 0.3 percent a year earlier. Due to the fact that the pandemic is causing significant changes in the economy, prices for industrial land are rising for the fourth year in a row, reflecting, for example, higher demand for space.
In general, prices in the third largest economy in July fell by 0.4 percent year on year, by 0.6 percent in 2020.
Housing prices, which have been falling for nearly three decades, have fallen another 0.5 percent over the period.
This decline contrasts with the problematic rise in property prices in many other industrialized countries, such as Australia, where house prices rose by a record 6.7 percent in the second quarter of 2021 amid weak economic growth.
By comparison, industrial space across Japan is growing by 0.8 percent as demand for factories and logistics facilities grows.