The Journal of Real Estate Finance and Economics

, Volume 35, Issue 4, pp 475–496

Pricing Structure in Tokyo Metropolitan Land Markets and its Structural Changes: Pre-bubble, Bubble, and Post-bubble Periods


DOI: 10.1007/s11146-007-9052-8

Cite this article as:
Shimizu, C. & Nishimura, K.G. J Real Estate Finan Econ (2007) 35: 475. doi:10.1007/s11146-007-9052-8


In this paper, we estimate hedonic price equations of Japanese commercial and residential land prices for a 25-year period and to investigate possible structural changes in these price equations. Our price equations are based on transaction prices, not appraised land values, of commercial land in Central Business Districts of Tokyo (Chiyoda Ward, Chuo Ward, and Minato Ward), and residential land of its suburb (Setagaya Ward). We find that price structure differs substantially among locations, reflecting differences in supplier pricing and end-user preferences. We also find significant structural changes in price structure, identifying pre-bubble, bubble and post-bubble periods.


Quality-adjusted real estate price indexHedonic approachBubble economyStructure changeSwitching regression model

JEL Classification


Copyright information

© Springer Science+Business Media, LLC 2007

Authors and Affiliations

  1. 1.Department of International Economics and BusinessReitaku UniversityChibaJapan
  2. 2.Policy BoardBank of JapanTokyoJapan