The decline seemed unstoppable: Land prices in the city of Utsunomiya fell every single year from 1993 to 2016, dropping more than 70% over that span. Yet, since 2017, prices in the community 100 km north of Tokyo have been rising, albeit at an annual pace of less than 1%.
Utsunomiya is not alone. A Japanese property price rebound is underway, led by big cities and popular tourist destinations but extending to provincial towns long neglected by foreign investors and domestic homebuyers alike.
Residential land prices in Tokyo, Osaka and Nagoya have risen for six straight years. But this year, for the first time in 27 years, prices outside the three biggest metropolitan areas rose as well, according to the land ministry's annual assessment as of Jan. 1, released in March.
There are several factors at work. Low interest rates are fueling investment. Globalization, urbanization, tourism and the rise of China are all creating powerful tail winds for redevelopment.
