Japan land price deflation eases, Tokyo recovers

Nationwide land prices fell for the 14th straight year, but more moderately than in the previous year, suggesting an end to a downturn that has plagued the Japan's real estate market and worried land owners since an asset-inflated "bubble economy" burst in the early 1990s.

Nationwide prices fell an average 4.2 per cent in the 12-month period compared with a fall of 5.2 percent in the previous year, the government survey showed.

Residential prices fell 3.8 per cent after the previous year's fall of 4.6 per cent, and commercial prices fell 5.0 per cent compared with the previous year's 6.5 per cent drop.

Prices in the capital recovered more strongly. Residential prices in Tokyo's 23 main districts rose 0.5 per cent on average after falling 0.8 per cent in the previous year. Commercial property rose 0.6 per cent after a fall of 1.3 per cent the previous year. Both rose for the first time since 1991.

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