According to the official land prices (as of Jan. 1) released on Mar. 21, the average volatility rates of both residential and commercial land in Fukuoka rose, while the rates of decline in most cities and towns contracted. In Fukuoka, the increase in land prices was most noticeable in the residential and commercial districts of Sawara Ward due to brisk sales of condominiums and homes. Commercial land prices rose in Hakata Ward in step with increased customer traffic at Hakata Station and Hakata City. Fukuoka’s average volatility rate (i.e., the variation of land prices over time) for residential land edged up from -0.9% last year to +0.7%, marking the first move into positive territory since 2008. At 10.7%, the highest volatility rate in the prefecture was recorded in Takatori 2 (Sawara Ward), followed by Nishijin 2 (Sawara Ward) at 10.1%. According to the Kyushu Branch of the Japan Real Estate Institute, the increases stem from favorable condo sales spurred by continuing low interest rates and a rush to buy property ahead of next year’s consumption tax hike. The average volatility rate for commercial land also crept into positive territory for the first time in five years, increasing from -1.6% to 0.7%. Six of the 10 highest rates in the prefecture were recorded around Hakata Station. At ¥5.78 million/m2, the highest priced land remained the Tenjin Core Building (Tenjin 1), which suggest the Tenjin area is recovering from the opening of Hakata City. Source: Nishinippon Shimbun, Mar. 22
