Published quarterly by Ministry of Land, Infrastructure, Transport and Tourism, and Japan Real Estate Institute. Updated to the quarter of July-September 2016 (published on December 28th, 2016).
Recent data trend
In the July-September quarter, commercial property prices in Japan rose by 1.5% year on year, slowing down from 4.3% rise in the second quarter.
Commercial property prices in Japan have been on a sustained upward momentum since late 2012, with a temporary standstill in 2014. However, the rise seems to be losing steam since the beginning of 2016. In the third quarter, the pace of year on year rise in commercial property prices slowed down to 0.7%. Sub-components of the index show both the prices of structured and unstructured properties are exhibiting similar slowdown in its year on year inflation. While it is still premature to make a concrete judgement on whether the upward run in property prices are ending, factors that have been fueling the rise in property prices, falling long term interest rates, aggressive monetary policy to promote a reflationary expectation are both coming to its end, in our view.
Brief overview of "Commercial Property Price"
Commercial Property Price Index (CPPI) is a newly developed economic indicator currently under a trial release from the Ministry of Land, Infrastructure, Transport and Tourism. The ministry initiated the quarterly publication in March 2016. The statistics are based on transaction values, rather than appraised values by experts.
Commercial Property Price of three metropolitan Areas (1984-2015)