March 23, 2022. Hokkaido Newspaper.
Public land prices rise in all six cities in the Ishikari Region of Hokkaido. The Ministry of Land, Infrastructure, Transport and Tourism (MLIT) released its official land prices for Japan. As of January 1, 2022, all six cities in the Ishikari region, including Sapporo, saw increases in both residential and commercial land prices on average. The rise in residential land prices, driven by demand for condominiums in Sapporo, spread to the less expensive suburbs, and the top 10 cities in Japan, which reported an increase in price, were all located in the Ishikari region. The impact of the coronavirus pandemic on commercial land also settled down compared to the previous year, and the property price recovered, with the exception of an area of downtown Susukino in Chuo-ku, Sapporo. The average land price (per square meter) for residential land in Sapporo was 89,700 yen, a 9.3% increase over the previous year. Commercial land increased 5.8% to 346,300 yen (per square meter). Both of these increases were for the ninth consecutive year. Of the 676 locations in Hokkaido where residential and commercial land prices rose, Sapporo City accounted for 65%, or 439 locations. Demand for residential land in Sapporo is expanding to the inexpensive neighborhoods and suburbs, because in the downtown area of Sapporo, Chuo Ward, land prices remain high due to high demand for condominiums. Supply cannot keep up with the demand for land within walking distance of city subway and JR train stations, and thus, more people are seeking residential land in neighboring cities and suburbs, further expanding the scope of the areas reporting an increase in property prices. Mr. Saito, Vice President of the Hokkaido Association of Real Estate Appraisers, based in Sapporo, says,”The government's low interest rate policy and the coronavirus train wreck have created an increase in the number of people thinking about buying a home, and areas that were not popular before are seeing a steady rise in demand and prices. The top 10 cities in Japan in terms of residential land appreciation were Kita Hiroshima City (7 locations), Ishikari City (2 locations), and Ebetsu City (1 location). Kita Hiroshima City, where the Japanese baseball team, Hokkaido Nippon Ham Fighters are building their new stadium, centered around Hokkaido Ball Park Fighters Village, reported an increase in property prices of 18.7%. Eniwa City saw an increase of 17.7%, and Ebetsu City recorded an increase of 16.9%. Mr. Haneda, 53, a real estate agent in Kita Hiroshima City, said, “Inquiries for land for condominium and apartment sites are increasing rapidly, but there isn’t any land available for sale.” Although commercial land prices struggled in the Susukino entertainment district, overall commercial land prices improved from 2021, buoyed by the redevelopment around JR Sapporo Station in anticipation of the extension of the Hokkaido Shinkansen bullet train to Sapporo. The five neighboring cities also saw double-digit gains across the board. Mr. Saito, Vice Chairman of the Board of Directors of the Sapporo Real Estate Association, said, “Although the impact of the coronavirus pandemic has subsided from the previous year, land and property sales for hotels and commercial facilities is not as brisk as that for the market in residential land and condominiums, and the future is still uncertain.”
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March 23, 2002. Hokkaido Newspaper.
Otaru residential land price increases for the first fime in two years and growth slows in Kutchan land prices. Commercial land prices increased for the sixth consecutive year in Otaru. The Ministry of Land, Infrastructure, Transport and Tourism announced on March 22 that the official land price in Otaru City as of January 1, 2022 was 0.3% higher than the previous year for residential land, which is the first increase in two years. Commercial land increased for the sixth consecutive year, up 0.6% year-on-year. In addition to the Otaru City center, residential land rose notably in the Shinko and Zenibako areas on the east side of the city closer to Sapporo. On the other hand, suburban areas such as the Akaiwa district continued to decline, making the polarization in prices and areas in demand even clearer. In the commercial areas, the rate of property price increase shrank from 1.6% the previous year due to the slow down in the construction of hotels and retail facilities in the face of the coronavirus pandemic. Of the official land price in the 32 Otaru residential areas surveyed, 9 rose, 13 remained unchanged, and 10 declined. The highest rate of increase was 9.1% at Hanazono 2-10-23, near Otaru City Hall, compared to a modest 2.3% rise in the previous year. Districts in the eastern part of Otaru City which offer an easy commute to Sapporo also reported an increase in land prices. Shinko 3-14-11, near the expressway bus stop, saw a 6.1% increase. Shintomi-cho 4-6, within walking distance of JR Minami-Otaru Station rose 4.4%, and Zenibako 3-23-6 saw a 3.6% increase. A Century21 real estate agent in the city noted, “With real estate prices in Sapporo remaining high, demand for single-family homes is strengthening in the eastern part of Otaru, including the Shinko district, where land prices are relatively low and commuting to Sapporo is easy.” In 2021, Otaru City accepted 360 building permits, up about 30% from the previous year. Of these, 155 were for Category No. 4 buildings, such as single-family homes, in the four districts including Shinko and Zenibako and the surrounding area, an increase of approximately 70% from the previous year. In contrast, the real estate market on the west side of Otaru City, closer to Yoichi Town, continued to decline. The highest rate of decline was 4.1% at Akaiwa 1-6-5, which also recorded a decline in land value of 4.7% the previous year. Property prices at Ranshima 1-12-2 fell 3.4% in 2021, compounding the fall of 3.3% the previous year. According to a real estate official, “Over the past few years, more and more people have been moving from suburban residential areas to the Otaru city center, where it is more convenient for commuting to work, school, and shopping, and this trend has not changed.” Commercial land in Otaru increased at three of the 12 surveyed sites and remained unchanged at nine locations. The highest rate of increase was 2.9% recorded at Sumiyoshi-cho 9-10, near JR Minami-Otaru Station (prices increased 2.2% in the previous year). Land prices at Shinko 2-21-19 increased by 2.5 percent. A real estate agent in Otaru City commented, “Many companies are taking a wait-and-see’ approach to real estate transactions due to the coronavirus pandemic. There is no movement to buy land zoned for hotels and accommodation facilities at high prices, but property prices remain firm and there aren’t any distressed bargain sales to be had.” Slower Growth in Kutchan and Some See a Post-Coronavirus Pandemic Recovery. For the past four consecutive years, Kutchan Town's official land prices, both residential and commercial, have been the highest in Japan in terms of year-on-year increase due to steady investment by foreign capital. The Ministry of Land, Infrastructure, Transport and Tourism report on national land prices shows that property prices in the ski resort town of Kutchan have slowed down and the top spot in the country is now Kita Hiroshima City, knocking Kutchan from the top spot for the first time five years. This is believed to be because the coronavirus pandemic and Japanese government policies have made it difficult for foreigners to enter Japan, reducing opportunities for business transactions. The view is that the appetite for investment in the Niseko ski resort area itself remains high, and that the pace of real estate transactions will increase once the coronavirus situation is under better control. The highest price (per square meter) for residential property in Kutchan was ¥151,000 yen per square meter for land in Yamada 83-29. The rate of increase was 11.9%, the highest in the Shiribeshi region, but far below the 25.0% rate of increase the previous year, when it ranked first in Japan. This year, it ranked 172nd in Hokkaido. The highest price for commercial land was ¥126,000 yen per square meter for land at Kutchan, South 1 West 1-40-1. The rate of increase plummeted to 4.1% from an increase of 21.0% the previous year. Mr. Hashizume, President of Niseko Alpine Developments, a real estate company in the Hirafu area of Kutchan, pointed out that, “The coronavirus shipwreck has made it difficult for foreign investors to come and look at properties in the resort area, and land sales transactions have slowed.” While he believes that a rapid recovery will likely be difficult even after the coronavirus pandemic is over, he also believes that, “Prices are likely to rise in the Hanazono ski resort area, where development is booming.” Another real estate company commented, “There are many inquiries from Chinese nationals who are interested in private accommodations like AirBnB and shared houses. After the coronavirus situation is resolved, investment will return and we will see a recovery in land price increases.” March 24, 2022. Hokkaido Newspaper.
Kutchan Town, in the Shiribeshi region, will change the name of Aza-Yamada, which is in the Hirafu area, the center of the ski resort, to Niseko Hirafu in October of this year. This is the first time that Niseko has been added to an official place name in Kutchan Town. This will make it clear that the world-renowned names Niseko and Hirafu refer to places within the town of Kutchan, and is expected to help increase the town's name recognition. The change covers approximately 212 hectares of part of the town, located in Aza-Yamada, including the Hirafuzaka main road and the land around the Niseko Tokyu Grand Hirafu ski resort. Land transactions associated with the ski resort development have resulted in irregular lot numbering due to subdivisions and the merging of plots. In order to solve this problem, the name Aza-Yamada will be changed to Niseko Hirafu in line with a revision of the rules for displaying the new address. The new name was decided upon after a survey of town residents and was approved by the regular town council meeting held until March 22. The new name will go into effect on October 1, 2022. The Niseko area, home to several world-class ski resorts, consists of the towns of Kutchan and Niseko, with Hirafu at its center. However, there has long been concern on the Kutchan side that not many tourists recognize the connection between Niseko and Hirafu and Kutchan. There are hopes among local tourism officials and businesses that the name change will improve the name recognition of Kutchan and the area. |
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