Land prices have started to rise again after falling due to the novel coronavirus pandemic. The government needs to closely examine the changing trends in the demand for land caused by the pandemic.
According to official land values as of Jan. 1 this year released by the Land, Infrastructure, Transport and Tourism Ministry, the national average value of land for all purposes rose by 0. 6% from a year earlier. Residential land prices increased 0.5% and commercial land prices rose 0.4%. Both figures marked their first rise in two years.
When land prices go up, the value of possessed assets increases, thereby improving household and business sentiment. Higher land prices have a positive impact on the economy as a whole, so it is desirable for prices to rise slowly. The government should make efforts to stabilize land prices.
