Standard land prices increased by 1.7% on average in Shimobetsu, the first increase in 22 years, and the Niseko area is also doing well

Niseko real estate News

As of July 1, the prefectural government announced on the 19th that the standard land prices in Shishi Prefecture, on average for all uses (residential, commercial, and industrial), had increased by 1.7% compared to the previous year, marking the second consecutive year of increase. Kimobetsu Town turned positive for the first time in 22 years, and 10 municipalities within the jurisdiction became positive, an increase of one from the previous year.

In addition to the recovery in tourism demand, the increase in demand related to construction work on the Hokkaido Shinkansen is thought to be a contributing factor. In Otaru City, in addition to increased demand for residential land near Sapporo, demand for commercial land, which had been negative until the previous year, also increased, resulting in an overall increase of 1.1%. Of the 82 locations within the jurisdiction, 32 locations have increased, an increase of 6 locations from the previous year.

For the second year in a row, Kutchan Town was at the top for both residential and commercial areas. “Thanks to the recovery in foreign ski tourists and the impact of the weaker yen, we are seeing more transactions than last year.” Ben Kerr, president of Niseko Real Estate, a real estate company in the town, feels that demand is recovering in the Niseko area. In this area, the trend toward active investment is becoming more pronounced, with some real estate transactions being moved forward to around summer in anticipation of increased demand during the winter. Many people think that the good performance will continue for some time.

The good performance of the Niseko area is also spreading to surrounding towns and villages. Kimobetsu Town is one such town, where the average for all uses turned positive for the first time in 22 years. Makoto Kitahashi, manager of the Niseko/Kutchan branch of Dainichi Capital & Hope (Sapporo), a real estate company based in Kutchan Town, said, “People are avoiding areas with high rents such as Kutchan and Niseko, and choosing surrounding towns and villages where land prices are low and within commuting distance. The number is increasing.The expansion of the area of residence has led to an increase in land prices.”

In addition to tourism demand, continued construction-related demand for the Hokkaido Shinkansen is also a positive factor for the area. Last year, the average for all uses in Iwanai Town turned positive for the first time in 36 years, and this year it increased by 0.3% compared to the previous year, increasing for the second consecutive year. A person in charge of the town’s Planning and Finance Division believes that “the acquisition of land for the construction of worker accommodation for construction work associated with the Shinkansen extension may have had an impact.” As the number of tourists recovers, an increasing number of people are setting up their homes in Iwanai Town, as Kutchan Town is within commuting distance.

In Otaru City, the average for all uses and residential land increased by 1.1% compared to the previous year, commercial land increased by 1.2%, and industrial land increased by 0.7% compared to the previous year. Last year, there was a negative figure for commercial land and no change for industrial land. Among residential areas, Ichi Hoshino-cho 112 200 had the highest rate of change in the area, with an increase of 21.5%. A real estate agent in the city was surprised, saying, “Land in Hoshino-cho was particularly cheap in the city, but a few years ago I would have never imagined that the price would rise to this level just because it’s adjacent to Sapporo.”
　
On the other hand, Ichi Akaiwa 1, 24-10 had the worst decline in the area, down 6.0% from the previous year. Another real estate agent points out, “There is no chance for demand to recover in areas that are far from the city center and less convenient.”

Some are concerned about the future of land prices in the jurisdiction, which have improved overall. Construction of a factory for Lapidus (Tokyo), which is expanding into next-generation semiconductor manufacturing in Chitose City, has begun, but as both materials and engineers are concentrated on building the factory, there is a shortage of human resources in other areas to work on construction of general housing, etc. there is a possibility. Stakeholders have voiced concerns that the construction of housing and commercial facilities will not proceed as planned, and that demand will decline in the future.

Hokkaido News Papar2023.9.20

Niseko real estate company CEO’s perspective

With the construction of the new stadium, land prices around Kitahiroshima will rise. Semiconductor manufacturing company Lapidus’s land prices around Chitose will rise. As the coronavirus subsides and tourists return, sales in the Niseko area will become more active and land prices will rise. Compared to other regions, Hokkaido is rich in nature and has a large amount of land. In the future, as global warming progresses, the number of people who want to live in Hokkaido will increase. The Shinkansen will open in 2030. Investment in Hokkaido is hot right now!