Japan Land Values Fall at More Sites Following Earthquake

Japan land values declined at more than two-thirds of the country’s land sites after record earthquake and tsunami slowed a recovery in the property market, according to a quarterly land ministry survey.

Values fell at 98 of 146 locations throughout Japan in the three months ended April 1, according to a survey by the Ministry of Land, Infrastructure, Transport and Tourism today. The survey excluded three sites in Sendai and one in Urayasu that were “directly affected by the quake,” it said.

The latest survey follows a magnitude-9 earthquake on March 11 and after property values declined at fewer land sites in the previous five quarters. The temblor sent office vacancy rates in Tokyo and Osaka to a record high in March and pushed Tokyo apartment supply down by 27.3 percent in April, according to Miki Shoji Co. and the Real Estate Economic Research Institute.

In the preceding quarter, which included the sites in Sendai and Urayasu, values declined at only 80 of 150.

The Topix Real Estate Index fell 0.2 percent following the survey, reversing an earlier gain of as much as 0.6 percent.

To contact the reporters on this story: Kathleen Chu in Tokyo at Kchu2@bloomberg.net; Katsuyo Kuwako in Tokyo at kkuwako@bloomberg.net

To contact the editor responsible for this story: Andreea Papuc at apapuc1@bloomberg.net.

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