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Land Prices in the Tokyo Metropolitan Area: A Hedonic Analysis of Judicial Auction Prices *1, *2

November 2003
Yumi Saita *3

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  1. *1This working paper is a translation of the original paper in Japanese (Bank of Japan Research and Statistics Department Working Paper Series 03-3)
  2. *2I am grateful to Toshitaka Sekine for his continuous guidance and encouragement. I am also grateful to many staff members at the Bank of Japan for their helpful comments on the earlier draft. The paper has benefitted from the excellent research assistance of Jochi Nakajima, Naoki Murano, Emi Arinaga, and Takashi Nagahata. I am solely responsible for any remaining errors in the paper.
  3. *3Research and Statistics Department, E-mail:


In this paper, hedonic price indices for land in Tokyo sold by auction are estimated for the period 1992-2002, relying upon a newly constructed auction property database. The estimation results show that since the bursting of the bubble, auction prices of land in the Tokyo metropolitan area have continued to decline, although, with the exception of 1997, the pace of their decline has been slowing. It is also found that compared to the Officially Published Land Price index and the Urban Land Price index, which are based on appraisal prices, the estimated hedonic price index has the following characteristics. (i) It has fallen more sharply, (ii) it has been more volatile, and (iii) its turning points have preceded those of the other indices.