Rosenka (Roadside Land Values) vs Jissei Kakaku (Actual Market Prices)

Roadside Land Values vs. Actual Market Prices in Japan: What Property Buyers Need to Know

If you are planning to buy or sell property in Japan, you may come across the term Rosenka (路線価), or roadside land value.

But what does it mean? And how does it compare with the actual market price of a property?

Understanding the difference can help you make more informed decisions when investing in Japanese real estate.

1. What Is a Roadside Land Value (Rosenka)?

A roadside land value is an official benchmark used primarily to calculate inheritance tax and gift tax in Japan.

The National Tax Agency publishes roadside land values annually. Each value represents the assessed value per square meter of land facing a particular road.

For example, if a road is marked “270D” on a roadside land value map, the roadside land value is ¥270,000 per square meter. The letter “D” indicates the applicable land leasehold valuation ratio.

Roadside land values are generally set at approximately 80% of the official land price benchmark.

*Official Land Price (Kōji Chika):

The Official Land Price (Kōji Chika) is the normal price per square meter of designated standard land across Japan as of January 1 each year. It is determined by the Land Appraisal Committee of the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) under the Land Price Publication Act and announced in late March each year.

Key Features of the Official Land Price:

Reference Date: January 1 each year (announced in late March)

How the Price Is Determined: At least two licensed real estate appraisers evaluate each designated standard plot of land. The committee then reviews the appraisals and determines the official price.

Main Purposes:

・A benchmark for general land transactions

・A basis for calculating prices when land is acquired for public projects

・A reference for inheritance tax and fixed asset tax assessments

・A standard for real estate appraisals

Important: The roadside land value is a tax valuation benchmark. It is not necessarily the price at which the property can be bought or sold.

2. What Is the Actual Market Price (Jissei Kakaku)?

The actual market price refers to the price at which a property is bought and sold in the market.

Unlike roadside land values, actual market prices are not determined by a fixed formula. They depend on various factors, including:

・　Location and accessibility

・　Land size and shape

・　Building condition and age

・　Road access and legal restrictions

・　Local demand and market conditions

・　Negotiations between the buyer and seller

For example, a property may have a roadside land value of ¥27 million, an asking price of ¥33 million, and a final sale price of ¥29 million.

In this case, the actual market price is ¥29 million.

The asking price is simply the amount the seller hopes to receive. It does not guarantee the final sale price.

3. Can You Estimate Market Value Using the Roadside Land Value?

Yes. Roadside land values can provide a useful starting point when researching property prices.

A commonly used rough estimate is:

Estimated market price = Roadside land valuation ÷ 0.8 × 1.1–1.2

For example, imagine a 100 m² plot of land with a roadside land value of ¥270,000 per square meter.

・　Roadside land valuation: ¥27,000,000

・　Estimated value using a multiplier of 1.1: approximately ¥37,125,000

・　Estimated value using a multiplier of 1.2: ¥40,500,000

However, this is only a simplified estimation method. The actual market price may be significantly higher or lower.

The relationship between roadside land values and market prices varies depending on the location and characteristics of the property. This calculation should not be treated as a formal property valuation.

4. Why Can Two Properties Have Different Market Prices?

Even if two plots of land have similar roadside land values, their actual market prices can differ considerably.

For example, a property with convenient road access, a desirable location, and a regular-shaped plot may attract more buyers than a property with narrow access, an irregular shape, or significant building restrictions.

When purchasing property in Kyoto, it is particularly important to check the following:

・　Road access and rebuilding restrictions

Does the property meet the legal requirements for rebuilding? Some older properties may be difficult or impossible to rebuild under current regulations.

・　Private roads

Does the property face a public road or a private road? Private road ownership, access rights, and consent requirements can affect the property’s usability and value.

・Building condition and renovation potential

An older house may appear affordable, but renovation costs and legal restrictions can significantly affect the total investment.

・Intended use

Are you planning to live in the property, rent it out, or operate a guesthouse? Zoning regulations, building requirements, and accommodation licensing rules may affect whether your plans are feasible.

These factors are especially important when buying traditional Japanese houses or older properties in Kyoto.

5. How Can You Find a Property’s Roadside Land Value?

You can search for roadside land values through the National Tax Agency’s official website.

1.Visit the National Tax Agency’s Roadside Land Value Maps and Valuation Rate Tables.

2.Select the relevant prefecture and municipality.

3.Find the map covering the property’s location.

4.Locate the road adjacent to the property and check the value shown on the map.

Official website: https://www.rosenka.nta.go.jp/

Keep in mind that calculating the official tax value of a specific plot may require additional adjustments for its shape, depth, and other characteristics.

6. How Can You Determine a Property’s Actual Market Price?

If you are considering buying or selling property in Japan, do not rely on the roadside land value alone.

A more reliable assessment should consider comparable property transactions, current market conditions, the property’s physical characteristics, and any legal restrictions.

You may also wish to obtain appraisals from multiple real estate professionals and compare their assessments.

For overseas buyers, understanding these details before making an offer can help you avoid unexpected costs and make better-informed investment decisions.

Final Thoughts

Roadside land values and actual market prices serve different purposes.

• Roadside land value (Rosenka): Primarily used for inheritance tax and gift tax calculations.


• Actual market price (Jissei Kakaku): The price agreed upon by the buyer and seller in a real estate transaction.

Roadside land values are a useful reference, but they do not tell the whole story.

When buying property in Japan, especially older houses in Kyoto, it is essential to look beyond the numbers and understand the property’s legal status, physical condition, and potential uses.

Thinking about buying property in Kyoto or elsewhere in Japan?

I support international clients with property purchases, sales, and guesthouse-related procedures. If you are considering investing in Japanese real estate, feel free to get in touch.

Misaki Terada

RE/MAX BASE

Real Estate Agent | Administrative Scrivener

Kyoto, Japan