In 2006, both nationwide average residential and commercial land prices rose for the first time in 16 years. The rises reflect the overall effect of the nation's longest postwar economic expansion, but it is clear that land-price increases in megalopolis areas are driving up national averages. In short, the land-price movement is highlighting economic gaps between urban and rural areas. The government needs to map out economic policies that effectively address these disparities.
Nationwide, as of Jan. 1, residential land prices rose an average 0.1 percent from a year earlier, after a 2.7 percent dip the previous year, and commercial land prices rose an average 2.3 percent, following a 2.7 percent drop. But a closer look reveals gaps in land-price increases between urban and rural areas.
In the Tokyo, Osaka and Nagoya megalopolis areas, residential land prices rose by an average 2.8 percent and commercial land prices by an average 8.9 percent. In contrast, in rural areas, residential land prices dropped by an average 2.7 percent and commercial land prices by an average 2.8 percent. But the rate of decline for both residential and commercial land prices in rural areas has slowed for three consecutive years.