A thorough explanation of the differences between official land prices, road tax values, and market prices, and how to research them. A summary of methods to independently investigate the fair market value of real estate using public data from the Ministry of Land, Infrastructure, Transport and Tourism and the National Tax Agency.
When trying to research real estate prices, various terms such as "Official Land Price," "Road Tax Value," and "Market Price" appear. In fact, there are 5 types of official price indicators for real estate in Japan, each with a different purpose, calculating body, and base date. To accurately grasp the market price, it is important to understand these differences and make judgments by combining multiple indicators.
| Type of Price | Determining Body | Base Date | Announcement Period | Primary Use |
|---|---|---|---|---|
| Official Land Price | Ministry of Land, Infrastructure, Transport and Tourism | January 1 each year | Late March | General land transaction indicator, calculation of public land acquisition prices |
| Standard Land Price | Prefectural Governments | July 1 each year | Late September | Complements the Official Land Price (reflects trends six months later) |
| Road Tax Value (Inheritance Tax Road Tax Value) | National Tax Agency | January 1 each year | Early July | Tax base for inheritance tax and gift tax |
| Fixed Asset Tax Assessment Value | Municipalities | Once every 3 years (base year) | Around April | Tax base for fixed asset tax, city planning tax, registration and license tax, and real estate acquisition tax |
| Market Price | -- (Determined by the market) | Time of transaction | Ongoing | Actual buying and selling price. Fluctuates based on supply and demand balance |
Official Land Price is the standard price appraised by two or more real estate appraisers for approximately 26,000 points nationwide by the Land Appraisal Committee of the Ministry of Land, Infrastructure, Transport and Tourism. It serves as a "yardstick" for land transactions and is also the basis for the other four prices.
Standard Land Price is a price surveyed by prefectural governments based on the National Land Use Planning Act, calculated using the same method as the Official Land Price. Its characteristic is that, because its base date is July 1, it allows you to check land price fluctuations over the six months since the Official Land Price (base date January 1).
Road Tax Value is a price published by the National Tax Agency as the calculation basis for inheritance tax and gift tax. It is displayed as the price per square meter of land facing a road (route), and is set at a level of approximately 80% of the Official Land Price.
Fixed Asset Tax Assessment Value is a price reassessed once every three years by municipalities as the tax base for fixed asset tax, with a guideline of approximately 70% of the Official Land Price. It is also used for calculating real estate acquisition tax and registration and license tax.
Market Price is the price at which an actual real estate transaction is concluded. Because it is determined by negotiations between the seller and buyer and the market's supply and demand balance, it can deviate from official indicators. Generally, it is considered to be 1.1 to 1.2 times the Official Land Price, but in popular areas, it can be 1.5 times or more.
The five prices are interrelated. Looking at the ratios of each indicator with the Official Land Price as 100, the relationship is approximately as follows. If you remember these ratios, you can estimate other prices from one price.
For example, if the road tax value of a certain piece of land is known to be 240,000 yen/m2, other prices can be estimated as follows.
| Conversion Source | Calculation Method | Calculation Example (If Road Tax Value is 240,000 yen/m2) |
|---|---|---|
| Road Tax Value → Official Land Price | Road Tax Value ÷ 0.8 | 240,000 ÷ 0.8 = 300,000 yen/m2 |
| Road Tax Value → Market Price | Road Tax Value ÷ 0.8 × 1.1 to 1.2 | 240,000 ÷ 0.8 × 1.15 = Approx. 345,000 yen/m2 |
| Road Tax Value → Fixed Asset Tax Assessment Value | Road Tax Value ÷ 0.8 × 0.7 | 240,000 ÷ 0.8 × 0.7 = 210,000 yen/m2 |
| Fixed Asset Tax Assessment Value → Market Price | Assessment Value ÷ 0.7 × 1.1 to 1.2 | 210,000 ÷ 0.7 × 1.15 = Approx. 345,000 yen/m2 |
With the above calculation, for a 100 m2 piece of land with a road tax value of 240,000 yen/m2, the market price can be estimated at approximately 33 to 36 million yen. However, this is only a guideline, and the actual transaction price can vary significantly depending on the land's shape, road frontage conditions, and surrounding environment.
Official Land Prices can be viewed for free on the "Land General Information System" (https://www.land.mlit.go.jp/webland/) provided by the Ministry of Land, Infrastructure, Transport and Tourism. This site allows you to search not only for Official Land Prices but also for actual real estate transaction price information.
| Function | Content | Usage Points |
|---|---|---|
| Land Price Publication / Land Price Survey | Official Land Prices for approx. 26,000 points and Standard Land Prices for approx. 21,000 points nationwide | Refer to the prices of standard points near the target land to grasp the approximate unit price per tsubo |
| Real Estate Transaction Price Information | Contract prices based on surveys of actual transaction parties | Check the level of market prices from nearby transaction cases |
| Land Price Fluctuation Rate | Year-on-year increase/decrease rate | Determine the land price trend (upward or downward) in the target area |
Source: Ministry of Land, Infrastructure, Transport and Tourism "Land General Information System" https://www.land.mlit.go.jp/webland/
Road Tax Values can be researched using the "Road Tax Value Map" freely available on the National Tax Agency's website (https://www.rosenka.nta.go.jp/). The Road Tax Value Map shows the price per square meter in thousands of yen for each road, and is used for calculating inheritance tax and gift tax.
On the Road Tax Value Map, you will see notations like "300D" along the roads. This is read as follows.
| Symbol | Leasehold Right Ratio | Typical Areas |
|---|---|---|
| A | 90% | Prime central locations |
| B | 80% | Central commercial areas |
| C | 70% | Near major stations |
| D | 60% | Residential areas (standard) |
| E | 50% | Suburban residential areas |
| F | 40% | Suburbs / rural areas |
| G | 30% | Rural / mountainous areas |
For a regularly shaped plot (no correction needed) with a front road tax value of 300 thousand yen (300,000 yen/m2) and a land area of 150 m2:
In reality, correction factors such as land shape (irregular plot correction), depth distance (depth price correction), and corner land (side road influence addition) are applied, so the final assessment value will be higher or lower than the above. Detailed correction factors are stipulated in the National Tax Agency's Basic Property Valuation Directive.
Estimating the market price for the above example:
It can be seen that there is a gap of about 1.4 to 1.5 times between the Road Tax Value (45 million yen) and the Market Price (approx. 61.5 to 67.5 million yen). When purchasing real estate, do not judge solely by the Road Tax Value; be sure to also check actual transaction cases.
Source: National Tax Agency "Road Tax Value Map / Assessment Ratio Table" https://www.rosenka.nta.go.jp/
Market Price is the price at which an actual sale is concluded. Unlike official indicators, it is the result of negotiations between the seller and buyer, so it can vary greatly even within the same area. The following tools and services can be used to research market prices.
| Service Name | Operator | Data Characteristics | Cost |
|---|---|---|---|
| REINS Market Information | Real Estate Transaction Network | Actual transaction price data. Searchable for condominiums and detached houses. | Free |
| Land General Information System (Transaction Price Info) | Ministry of Land, Infrastructure, Transport and Tourism | Price information based on surveys of transaction parties | Free |
| Real Estate Information Library | Ministry of Land, Infrastructure, Transport and Tourism | Displays land prices, transaction prices, and disaster prevention info on a single map | Free |
| SUUMO, HOME'S, etc. | Private companies | Current listing prices (note: these are not transaction prices) | Free |
The prices listed on real estate portal sites (SUUMO, HOME'S, etc.) are "listing prices (desired selling prices)", not actual transaction prices. Generally, transaction prices tend to be 5-10% lower than listing prices.
For example, if the listing price of a nearby condominium is 40 million yen, the transaction price could be around 36 to 38 million yen. To accurately grasp the market price, you should refer to transaction data from REINS Market Information or the Land General Information System, rather than listing prices.
Source: Real Estate Transaction Network "REINS Market Information" http://www.contract.reins.or.jp/
Fixed Asset Tax Assessment Value is the price of real estate assessed by municipalities for taxation purposes. It is revised every 3 years in a "reassessment" and is set at approximately 70% of the Official Land Price. It is an important indicator that serves as the calculation basis not only for fixed asset tax but also for registration and license tax, real estate acquisition tax, and city planning tax.
| Item Listed | Content | Points to Note |
|---|---|---|
| Assessment Value | The Fixed Asset Tax Assessment Value itself | Fluctuates with reassessments every 3 years. Next reassessment is fiscal year 2027. |
| Taxable Base Amount | The amount used as the basis for tax calculation | Amount after applying special provisions for residential land (1/6, 1/3) |
| Tax Amount | Taxable Base Amount × Tax Rate | Fixed asset tax is 1.4% (standard rate), city planning tax is up to 0.3% |
For a residential land (small-scale residential land of 200 m2 or less) with a fixed asset tax assessment value of 21 million yen for the land and 8 million yen for the building:
| Item | Assessment Value | Taxable Base Amount | Tax Amount |
|---|---|---|---|
| Land (Fixed Asset Tax) | 21,000,000 yen | 3,500,000 yen (1/6 special provision) | 49,000 yen |
| Land (City Planning Tax) | 21,000,000 yen | 7,000,000 yen (1/3 special provision) | 21,000 yen |
| Building (Fixed Asset Tax) | 8,000,000 yen | 8,000,000 yen | 112,000 yen |
| Building (City Planning Tax) | 8,000,000 yen | 8,000,000 yen | 24,000 yen |
| Total | -- | -- | 206,000 yen/year |
To estimate the market price from the Fixed Asset Tax Assessment Value, divide the assessment value by 0.7. For the land above, 21,000,000 yen ÷ 0.7 = approx. 30,000,000 yen is the estimated Official Land Price, and multiplying by 1.1 to 1.2 gives an estimated market price of approx. 33,000,000 to 36,000,000 yen.
In addition to researching official indicators and portal sites, using AI-powered market analysis tools together enables more accurate price judgments. KeibaiX's Market/Statistics function uses AI to analyze nationwide real estate data and visualize market trends by area.
| Function | Content | How to Use |
|---|---|---|
| Price Range Distribution by Prefecture | Displays property price ranges by area in a graph | Check if your purchase budget matches the price range of the target area |
| Successful Bid Ratio Trends | Displays historical successful bid ratios (ratio of winning bid price to base price) over time | Quantitatively judge the popularity and competition level of an area |
| Yield Analysis | Distribution of gross yields by area | Compare the profitability of target investment areas |
| Property Type Composition Ratio | Proportion of condominiums, detached houses, land, etc. | Understand how much of your desired property type is circulating in the target area |
For example, when researching the market price of a condominium in Setagaya Ward, Tokyo: