(Bloomberg) -- Taiwan Semiconductor Manufacturing Co.’s new chip plants on the southern island of Kyushu have triggered Japan’s fastest rises in land prices for the second straight year, in an indication of the project’s impact on the economy.
Two locations in Ozu, a town in Kumamoto prefecture close to TSMC’s two factories, saw the biggest price hikes as of July 1 compared with a year earlier, according to data released Tuesday by the Ministry of Land, Infrastructure, Transport and Tourism. Both areas saw a 33.3% increase, compared with a national average of 3.4% for land earmarked for industrial use.
Nationally, benchmark prices rose for all types of land for the third consecutive year, as the economy slowly emerges from decades of deflation.
A town on the northern island of Hokkaido next to a chip campus planned by Rapidus also saw land price increases of 19-25%. The biggest increase for residential land was in the village of Onna on the subtropical island of Okinawa, which rose by 29% compared to a nationwide average of 1.4%, as tourists flock to the country.
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