Land prices in Japan have continued to rise in areas where semiconductor plants, supported by the government, are being established, according to a recent report by the country’s land ministry.
In Ozu, a town in Kumamoto Prefecture, land prices for commercial and industrial plots have seen the sharpest increases in the country. This area, located east of Kikuyo, is near the site where Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chip manufacturer, is building its second plant in Japan. As of July 1, the land ministry's survey revealed these price hikes.
The rising demand for semiconductors—critical components used in products such as automobiles, smartphones, and more—has also driven the demand for land to build large-scale logistics facilities, especially in areas with easy access to airports and expressways.
Ahead of the planned launch of TSMC’s first Japanese plant in Kikuyo by the end of the year, the town has seen a surge in housing construction, particularly for apartments for plant employees. Meanwhile, in Ozu, there is a notable shortage of land plots suitable for stores and other facilities.
A local real estate firm representative noted that “demand for surrounding land and properties for investment is strong."
In Hokkaido’s Chitose city, where Japan’s Rapidus is constructing a facility for next-generation semiconductor production, the demand for land for housing, hotels, and office spaces has also surged. Following the announcement of the plant’s construction, land prices in Chitose saw substantial growth across residential, commercial, and industrial sectors.
"There’s a shortage of all types of housing for rent, including for single households and families," said a representative from a real estate agency in Chitose.
The strong demand for land suitable for logistics operations stems from the impact of the chip plants, the ongoing growth of online shopping, and stricter regulations on truck drivers’ working hours, prompting businesses to rethink their logistics strategies.
Mitsubishi Estate President Atsushi Nakajima emphasized that efficient logistics networks and facilities need to be developed, highlighting the importance of logistical infrastructure.
As a result, land prices have risen significantly in coastal regions of Chiba Prefecture (including Funabashi, Ichikawa, and Narashino) and in Amagasaki city in Hyogo Prefecture, all of which are home to major industrial areas. In Sendai city’s Miyagino Ward and Fukuoka Prefecture’s Umi town, industrial land prices increased by around 20%. Demand is obviously growing in areas where transportation is convenient and it's easier to hire employees for logistics operations.
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