Japan's three measures of land price.

The Official Land Price 公示地価 (Kōji Chika)

The official land price, sometimes called "publicly announced price," is established by the Land Appraisal Committee of the Ministry of Land, Infrastructure, Transport and Tourism. It serves as the standard price for land transactions nationwide.

- Purpose: Provides a benchmark for land transactions, public works acquisitions, and land price reviews

- Assessment: Based on evaluations by two or more real estate appraisers

- Coverage: Urban planning areas where real estate transactions are expected

- Valuation Date: January 1st each year

- Publication: Mid-March each year

These prices represent the fair market value per square meter of standard plots, absent special circumstances. While transaction prices don't need to match official land prices exactly, they serve as important reference points.

The official land price also influences inheritance tax, gift tax, and fixed asset tax assessments. In 2020, prices rose in the three major metropolitan areas (Tokyo, Osaka, and Nagoya) and even showed recovery in the national average.

Standard Land Price 基準地価 (Kijun Chika)

Standard land prices are determined by each prefecture rather than the national government.

- Purpose: Provides regional land price indicators

- Assessment: Based on evaluations by one or more real estate appraisers

- Coverage: Includes areas outside urban planning zones

- Valuation Date: July 1st each year

- Publication: Late September each year

Roadside Land Price 路線価 (Rosenka)

The National Tax Agency publishes roadside land prices primarily for tax purposes.

- Purpose: Determines tax assessments

- Assessment: Generally calculated at approximately 80% of the official land price

- Types:

- Inheritance Tax Roadside Value: Used for inheritance and gift tax calculations

- Fixed Asset Tax Roadside Value: Used for property tax assessments (typically 70% of official land price)

- Valuation Date: January 1st each year

- Publication: July 1st each year

Selection Criteria for Standard Lands

Standard lands, which serve as survey sites for official land prices, are carefully selected to represent average conditions in their areas. The selection considers:

- Environmental factors

- Surrounding topography

- Distance to transit stations

- Utilities access (electricity, gas, water, sewerage)

Lands with irregular shapes, extremely large sizes, or unusually convenient or inconvenient locations are excluded. While standard sites are selected nationwide, they only appear in "publicly announced areas" where significant land transactions are expected.

Finding Land Price Information

Official and Standard Land Prices

Both can be accessed through the Ministry of Land, Infrastructure, Transport and Tourism's "Land Comprehensive Information System." This resource allows you to:

- View prices by survey year

- Track land price trends

- See whether values are rising or falling

Individual prefecture finance bureau websites also typically provide PDFs with benchmark site survey results.

Roadside Land Prices

The National Tax Agency website publishes roadside land values. For areas without established roadside values, an "assessment rate" is applied to the fixed asset assessment value. Fixed property tax roadside prices can be confirmed with local governments.

Practical Applications

The different assessment periods make these indicators complementary. While official land prices are valued as of January 1st, standard land prices reflect values as of July 1st—providing a mid-year update on market trends.

Standard land prices are particularly valuable for areas outside public notice zones, where official land prices might not be available.

These indicators help property owners and investors:

- Estimate the value of owned or potential properties

- Assess collateral capacity for loans

- Determine if financial institutions are likely to approve financing

- Make informed decisions on property transactions

By understanding these different land price indicators, you can navigate Japan's real estate market more confidently and make better-informed investment decisions.