August 29, 2018

Japan House Price

House price inflation continues at a moderate pace in November

Published monthly by Ministry of Land, Infrastructure, Transport and Tourism, and Japan Real Estate Institute. Updated to the month of May 2018 (published on August 29th, 2018).

Recent data trend

The residential property price index (RPPI) in Japan continues to rise at a mild pace. In November 2017, RPPI was up by 2.9% year on year (YoY). In terms of the level of RPPI, it has stagnated since the sharp rise in January 2017, but there seems to be a seasonal jump in January, and we will see if a similar jump happens in January 2018. Among the sub-categories of residential properties, prices of condominium properties continue to lead the property prices, but the pace of year on year rise ...

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Brief overview of “House Price”

In Japan, the annually-published Land Market Value survey (Ko-ji Chika) has been the representative statistics for real estate prices. For 2013, it surveyed the prices of 26,000 land locations in Japan. However, the statistics suffer a number of shortcomings. The “price” in this survey is an evaluated price, rather than the actual transaction price. It is also a statistics of land price and it does not include price information for the condominium. It is also an annual survey, lacking in timeliness.   

The Japanese government developed a new statistics on house prices to fill the gap. The statistics, officially known as “Residential Property Price Index (RPPI)”, is published monthly and it is based on actual transaction data. In order to capture the trend in the market value of houses, the raw data are processed through Hedonic regression to control for the difference in factors such as location. The compiled statistics starting in April 2008 were initially released in August 2012 and currently in a fully operational phase starting from March 2015. The RPPI consists of 3 sub-indices, one price index for residential land, the second price index for the detached house, and the third price index for condominiums. National, as well as a number of regional indices, are available. In the last 5 years, RPPI has fallen sharply through 2008-09 but started improving after 2013. On the other hand, one of its sub-components, the price index for condominiums, started to rebound as early in late 2009 and the index is currently renewing the highest level since the index started in 2008.

For more information visit the official government page.

The Next Release Date: September 28th, 2018)  

House Price by Regions 1 (Hokkaido, Tohoku, Kanto)  

House Price by Regions 2 (Hokuriku, Chubu, Kinki)  

House Price by Regions 3 (Chugoku, Shikoku, Kyushu-Okinawa)  

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