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 March 29th, 2017).
Recent data trend
In the last quarter of 2016, commercial property prices in Japan fell by 1% quarter on quarter (QoQ). The Commercial Property Price Index has not risen in the last three quarters of 2016.
Commercial property prices in Japan were on a sustained upward momentum since late 2012, with a temporary standstill in 2014. However, the rise seems to have lost its steam again in 2016.
Most of the sub-components of the index, such as Retail property price, factory property price show a stagnant trend in 2016. The only exception could be the Office property price where the index has risen in the last quarter of 2016. 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.
For more information, visit the official government page.
Commercial Property Price of three metropolitan Areas (1984-2016)