Japan's average land price rises for 5th straight year

Government data shows the average land price across Japan rose for the fifth consecutive year as of July 1. The increase reflects demand for housing, as well as commercial properties related to the surge in visitors from overseas.

The annual survey by the land ministry shows prices rose 1.5 percent from last year. The report released on Tuesday contained data from more than 21,400 locations across the country.

The price of residential land grew 1 percent, the fifth straight year of gains. Greater Tokyo prices rose 4 percent, while the comparable area in Osaka climbed 2.3 percent. Both represent faster gains than last year. Demand for high-priced condominiums remained strong.

Average prices for commercial land rose 2.9 percent, also gaining for the fifth straight year. This was attributed to demand for retail stores and hotels as tourist numbers increase. Also, vacancy rates at office buildings have declined, leading to higher rents.

However, residential land prices fell in around half of the country's 47 prefectures. Commercial land prices slid in roughly a quarter of them.

The declines were seen in locations with shrinking and aging populations.