January 12, 2023. Hokkaido Newspaper.
Niseko's ski resort visitors recover to more than double last winter. Foreigners have returned to Niseko. However a decrease in tourism industry staff and the lack of passenger transportation are issues for the ski resort. The number of visitors to ski resorts in the Niseko area of Kutchan Town, which has continued to be sluggish due to the Coronavirus pandemic, has greatly recovered this winter. This is because the Japanese Government relaxed immigration restrictions in October 2022 and foreign visitors from Australia and Southeast Asia, which had been the mainstay of the ski resorts, have returned to almost 80% of the pre-pandemic numbers. On the other hand, amid the Coronavirus pandemic, the number of tourism industry personnel has decreased and passenger transportation is struggling to handle the influx of tourists. There are not enough people to service the requirements of those visitors that are now arriving and it is necessary to rebuild the tourist infrastructure system. At Niseko Village Ski Resort on January 7. there were many foreign skiers lined up at the gondola platform. Peter Stoort (42) and Christina Katsimberdis (41), a married couple from Australia who visited the Niseko area for the first time in five years, said with a smile, “Niseko has the best snow quality in the world. We are enjoying the hot springs every day. We hope to come back next winter.” In December 2022, the total number of people transported by lifts and gondolas at the four major ski resorts in the Niseko area reached approximately 1,399,900. This figure represents a 230% increase than in the same month of the previous year. This winter, the relaxation of immigration restrictions and the depreciation of the yen have been a tailwind, and the number of visitors and riders has returned to 78% of the approximately 1,784,600 recorded in December 2019, before the coronavirus pandemic began. Mr. Tanaka, Manager of the Niseko Village management company, said, “I'm very happy with the recovery in customer traffic and I'm looking forward to the second half of the season.” However, there are many challenges to a complete recovery for the ski resort. The tourism industry is facing a serious workforce shortage to cater for the influx of tourists and stiff competition from other markets and countries. The competition to acquire human resources has intensified as a reaction to the reduction in staffing levels at accommodation and dining facilities due to the Covid19 trainwreck. Foreign seasonal staff and the backpacker workforce, which many companies had previously relied on, who stay for a long period of time on working holidays and are responsible for English language support have had a short preparation period after the relaxation of immigration restrictions last fall to organize work visas and the Japanese yen's depreciation has affected the wages earned in foreign currency conversion. As of the end of December 2022, Kutchan had 1,663 registered foreign residents, about 30% less than before the pandemic. A condominium and vacation home management company has only 60% of the staff needed for cleaning guest rooms and food and beverage service this winter season compared to before the pandemic. A company executive revealed, “Due to a shortage of staff, we have had to reduce our operating hours and room availability and are currently accepting reservations at 10 to 20% less than our capacity.” In the Niseko area, the decline in transport capacity is very serious, with some taxi companies reducing their number of vehicles in service by more than 20% due to the Coronavirus pandemic. Osmar Kardin (52), and Shafina Akbar (50) who came to ski from Malaysia, tried to return to their hotel in Niseko Town from JR Kutchan Station on January 4, but there were no taxis in front of the train station, and they were forced to wait about 50 minutes for a public bus. “When we leave the hotel, the taxis are already fully booked, so we have to rely on the bus. It takes a long time to get around the resort,” he said. Due to the shortage of buses and taxis operating between New Chitose Airport and the Niseko area, many foreigners are forced to take the train and travel from the airport to Niseko via Sapporo Station. Niseko Ground Service, a travel agency in the town of Kutchan, reports that they have received a total of 400 taxi reservations for this same route this winter, but had to turn down about 100 clients. In order to avoid this mess, the company said, “It is necessary for the accommodation facilities to inform their overseas guests to book as early as possible for taxis and transportation services.” Under these circumstances, local tourism officials are calling for drastic measures such as long-term training of tourism human resources and the expansion of taxi transportation beyond the company's service area.
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January 10, 2023. Hokkaido Newspaper.
A series of fatal snow accidents in Hokkaido have claimed seven lives, more than twice as many as last winter. Authorities are urging people to be aware of rising temperatures after snowfall. In Hokkaido, this winter, there have been a series of fatal accidents caused by people falling from roofs while removing snow. On January 8, the death of a man who apparently fell of his roof while clearing snow in Sunagawa City was confirmed, and by January 9, at least seven people had died. Last winter saw 29 deaths, the highest number in five years, but this winter the number of deaths has more than doubled compared to the same period last winter. This winter, after a large amount of snowfall, the temperature rose suddenly, and there have been many cases where people were caught in snow falling off roofs. According to the Sapporo District Meteorological Observatory, heavy snowfall is expected mainly in the Ishikari district on January 10, and high temperatures are expected throughout Hokkaido from January 11, leading the SDMO to call for caution in the next few days. In Sunagawa City, around 2:40 pm on January 8, local residents found Mr. Horikawa, aged 72, collapsed in front of his house at East 5-South 19, Sunagawa. He was later confirmed dead. According to the Takikawa Police Station, Mr. Horikawa lived alone and there was a shovel left on the roof of the first floor when he was found. Police suspect that Mr. Horikawa accidentally fell while clearing snow from the roof. The snow depth in Takikawa City, the closest observation point to Sunagawa City, as of 7:00 pm on January 9, was 79 centimeters, which is 1.2 times that of an average year. Mr. Sako, aged 82, who lives in Mr. Horikawa’s neighborhood, said, “It's snowing a lot at once this season. I'm afraid that the roof will break because of the weight of the snow, so I have no choice but to remove the snow frequently.” According to Hokkaido Police reports, there were at least six fatal accidents in Hokkaido between mid-December of last year and January 9 of this year, in which people fell from roofs while removing snow or were caught in falling snow from roofs. Seven people died. They were all between the ages of 50 to 80, and four were aged 65 or older. According to Hokkaido Government statistics, as of January 9, there were 3 deaths last winter. Last winter, Hokkaido recorded the highest number of deaths for the entire season in the last five years, but this winter already Hokkaido has already recorded four more deaths than the same period last winter. Last winter, localized heavy snowfall began in mid-January, causing a sharp increase in the number of deaths. Over the past five years, the average number of fatalities for the entire season was 17.6 people. According to the Japan Meteorological Observatory, this winter's snowfall is on par with the average year across Hokkaido, but it is characterized by localized heavy snowfall in some areas such as eastern, northern, and central Hokkaido. Most of the fatal accidents occurred when the temperature rose after a large amount of snowfall. On December 27 last year, two men who were removing snow from the roof of a recycling plant in Otoineppu Village in the Kamikawa district, were caught in falling snow and fell to their deaths. On December 23, four days before the accident, 76 centimeters of snow fell in the village. After that, the maximum temperature on December 27, the day of the accident, was 1.9 degrees Celsius, 4.5 degrees higher than the average year. In Hokkaido, the temperature is expected to rise after heavy snowfall events. According to the Japan Meteorological Observatory, on January 10, 50cm of snow is expected in the Ishikari region due to a significant winter atmospheric pressure pattern. Furthermore, the temperature will rise significantly after January 11, and the maximum temperature is expected to be similar to that of late March to early April across all of Hokkaido. The Hokkaido Police and the Hokkaido Prefectural Government are urging the public that more than one person should be engaged in snow removal from roofs and other locations at all times and that people should wear non-slip shoes and take other measures to prevent falls. January 7, 2023. Hokkaido Newspaper.
Hong Kong Real Estate Giant to build resort villas in Kutchan to expand the scale of the ski resort. Pacific Century Premium Developments, a major real estate developer in Hong Kong, announced on January 6, that it is planning to develop resort villas on about 25 hectares of land around Niseko Hanazono Ski Resort in Kutchan Town. The Park Hyatt Niseko Hanazono and the Niseko Hanazono Ski Resort are owned and operated by the group. The company has already announced plans to develop approximately 70 hectares in the surrounding area. PCPD is aiming to expand the scale of the resort in anticipation of the conclusion of the Coronavirus pandemic, and to strengthen its function as a destination for wealthy overseas people. The vacation homes will be located along a 1km stretch of the Kutchan-Niseko Route 58 from east to west. The number of villas to be built has not been disclosed, but it is expected to be in the dozens. Site preparation work is scheduled to begin at the end of April and be completed by the end of November next year. Construction of the villas will begin in 2024. The completion date for the project has not yet been determined. Drilling for hot springs is also underway. On the development site already announced by Pacific Century Premium Developments, the Park Hyatt Niseko Hanazono luxury hotel opened in 2020. The Nikko Style Niseko Hanazono Hotel is currently under construction on an adjacent site. PCPD also plans to build 14 villas on 6.4 hectares in the area. January 7, 2023. Hokkaido Newspaper.
Kutchan Town Drafts New Rules for Resort Development, Limits Total Floor Area of Accommodations Facilities and Considers Ordinances for Forest Landscape. On January 6, Kutchan Town, in the Shiribeshi district of Hokkaido, presented a draft of new rules for resort development in harmony with the environment and landscape at Kutchan Town’s study committee. In the areas surrounding existing hotels and condominiums, the new rules stipulate that the total floor area of accommodation facilities should be 10,000 square meters or less, and Kutchan Town will also guide the layout and structure of these new facilities to blend in with the forest and natural environment. Regulations on development areas will also be strengthened to prevent building over-crowding. After amending related ordinances, Kutchan Town is scheduled to implement these new rules from the autumn of 2023. In Kutchan Town, active investment by foreign capital continues in anticipation of the aftermath of the Coronavirus pandemic. The new rules are aimed at preventing overdevelopment and the uncontrolled expansion of development areas. However, due to difficulties in drafting the proposal, the implementation target date of the new rules has been extended by one year. Even after the new regulations become enforced, there will be a grace period of three years for the implementation of the regulations regarding the total floor area of accommodation facilities. It is likely to take even more time for the new rules to come into effect. Kutchan Town’s new regulations on the allowable total floor space of accommodation facilities cover a wide area of the ski resort, including the popular Hirafu area and the Hanazono ski resort area. Kutchan Town’s initial proposal on the allowable total floor space of future accommodation facilities was set at 1,000 square meters or less, with some exceptions granted for developments of accommodation facilities to be limited to under 3,000 square meters or less. Kutchan Town’s original proposal on the allowable total floor space of future accommodation facilities has been eased considerably in response to comments that it was not enough to give the facilities a luxurious feel. In the central Hirafu area, construction on the same scale in terms of total floor space as existing major condominiums in the area will be possible. On the other hand, a spokesperson for Kutchan Town said that, “Kutchan Town has decided to keep the ratio of the total floor area to the site area (floor area ratio) below 50% so that the buildings will be buried in greenery.” In addition, in all districts of the ski resort, except the existing development area in the Hirafu area, Kutchan Town’s new regulations on the land site size area of a single building will be set at 1,000 square meters or more, to prevent the overcrowding of villas. New rules for the Green Coverage Rate will be established for each district. Henceforth, Kutchan Town will solicit public opinion from local residents and submit revisions to related ordinances to the town council in preparation for the enforcement of the new rules. December 13, 2022. Hokkaido Newspaper.
Tokyu Land Corporation acquires the Hotel Niseko Alpen site for 3.5 billion yen from Kutchan Town, which is 36% of Kutchan Town’s budget. Tokyu Land Corporation, based in Tokyo, has decided to purchase for 3.553 billion yen approximately 9,800 square meters of land owned by the town in the Hirafu ski resort area, which had been leased as the site of the Hotel Niseko Alpen. Kutchan Town will soon sign a contract with Tokyu Land Corporation and the company will begin a large-scale renovation of the hotel, which is scheduled to start by spring 2023. Kutchan Town will submit a related bill to the regular town assembly on December 15, and it is expected to be approved. In October, Tokyu Land Corporation announced that it will build a new gondola in 2024 at the Niseko Tokyu Grand Hirafu Ski Resort, which is adjacent to the Hotel Niseko Alpen. The acquisition of the hotel property site, which the company had approached Kutchan Town about a few years ago, and the planned large-scale renovations of the hotel underscore the company's strategy to improve and strengthen the ski resort. The current hotel, which opened in 1986, has 125 rooms and covers four floors above ground and two floors below ground. In anticipation of the resolution of the Coronavirus pandemic, the Hotel Niseko Alpen will be closed for a year from April 2023. Tokyu Land Corporation will focus on improving the hotel’s facilities. The planned construction period may change depending on the details of the renovation plans for the hotel. Several years ago, Tokyu Land Corporation considered acquiring the approximately 8,800 square meters of town-owned land on the hotel site. Kutchan Town had indicated an appraisal value of approximately 2.8 billion yen, but Tokyu Land Corporation abandoned the plan due to the outbreak of the Covid19 train wreck. This time, the purchase price exceeded the expected acquisition price due to the increase in land prices around the ski resort and an increase in the area to be acquired in anticipation of the ski resort's growth. For Kutchan Town, this is a large amount of extraordinary income, equivalent to 36% of the initial general account budget of 9.864 billion yen for the current fiscal year. Kutchan Town plans to set aside this nonrecurring income amount in a special fund. December 11, 2022. Hokkaido Newspaper.
Ski resorts in Hokkaido are raising lift ticket prices one after another due to soaring fuel costs. A number of ski resorts in Hokkaido are raising lift ticket prices in response to soaring utility and fuel costs. Some ski resorts are making the difficult decision to raise ticket prices to cover costs fully aware that some skiers will turn away from skiing as the price rises, but other ski resorts are strategically raising lift ticket prices in anticipation of a recovery in the number of overseas visitors, which has declined in the wake of the Covid19 pandemic. Will the price hikes support profits or have a negative impact on the number of visitors? With the start of the full-fledged ski season approaching, those in the industry are keeping a close eye on the trends among skiers. Rusutsu Resort raised the price of lift tickets by 35% to 8,800 yen, becoming the highest price ski resort in Japan. Sapporo Kokusai Ski Resort, based in Sapporo, set the price of a one-day adult ski pass at 4,800 yen, about 4% higher than the previous year. A company spokesperson said that, “Electricity, oil, labor costs, everything is expensive this winter. Management efforts alone are not enough to cover the cost increase and a minimum lift ticket price increase was unavoidable.” Sapporo Teine Ski Resort also raised its lift ticket prices by about 4%. Moiwa Yama Ski Resort, also based in Sapporo, raised the price of 7-hour tickets by about 8% compared to the previous year. Mr. Ueda, President of Rinyu Kanko, which operates the ski resort, said, “Ski resorts need to keep the lifts running and the lights on, and it is difficult to cut fixed costs in this type of business. This year, the electricity bill alone is expected to cost 30-40% more than the previous year, so the impact will be significant.” People in the ski industry are concerned that the price hike will accelerate the shift of guests away from skiing. According to the Hokkaido Cableway Association, the number of skiers in Hokkaido has been declining year by year since the economic bubble peaked around 1987. During the 2020-2021 season, which was affected by the coronavirus pandemic, the number of lift passengers decreased by about 40% compared to before the pandemic. Although a recovery is expected this season, Mr. Ueda is worried saying. “I hope the hike in lift ticket prices won't act as a brake on the recovery of guests to Hokkaido ski resorts.” On the other hand, ski resorts that expect an increase in overseas skiers due to the easing of Japanese Immigration restrictions have taken the bold step of raising prices. Rusutsu Resort, based in the Shiribeshi area, set the price of a one-day pass at 8,800 yen, 35% higher than the previous year and making it the highest price among all ski resorts in Japan. “Hotel reservations are back to 95% of what they were before the pandemic. The lift ticket price increase is a strategy focused on overseas customers, and our price range still seems low compared to European and American ski resorts,” a spokesperson for Rusutsu Resort revealed. For local customers and long-stay visitors, Rusutsu Resort will offer discounted hourly tickets, which can be used in one-hour increments, to reduce the financial burden on these guests. The aim is to raise the price per customer, especially for overseas customers, and use the revenue to invest in facilities and equipment. One of the factors behind the successive price hikes is that many ski resorts made large capital investments during the 1980’s bubble period and need to renew aging lifts and other equipment. A ski resort manager in Hokkaido predicts that, “Large ski resorts that can attract skiers from overseas will continue to raise prices due to the renewal of facilities and new construction. The Hokkaido ski resort customer base will probably become clearly divided between small and medium-sized ski resorts that cater mainly to local customers and large ski resorts that cater to overseas guests.” The reaction of skiers to the series of price hikes is divided. Mr. Nitta, 35, who returned home from Tokyo and visited Sapporo Teine Ski Resort with his family of four on December 9, said, “It feels a little expensive compared to ski resorts in the Kanto region. I would like it to be as cheap as possible.” Mr. Okubo, 32, who lives in Sapporo, expressed his understanding, saying, “While the prices of most things are going up, it is to be expected that prices at ski resorts are going up too.” October 13, 2022. Hokkaido Newspaper.
Hoshino Resorts to open their first luxury condominium hotel in Hokkaido, in the Hirafu ski resort area in 2026, to be called Hoshinoya. Hoshino Resorts, based in Karuizawa, Nagano Prefecture, announced on October 12 that it will open its first luxury condominium hotel called Hoshinoya Lodge Niseko (tentative name) in the Hirafu ski resort area of Kutchan Town in the fall of 2026. The hotel will be located adjacent to the Niseko Tokyu Grand Hirafu ski resort, just above the Skye Hotel and the under-construction Matie Resort Hotel. The hotel will feature ski-in and ski-out access. Each guest room will be sold individually and operated as a hotel guest room for the general public during the period when the owner is not staying. They are called "residence hotels" and are increasing in resort areas both in Japan and overseas. This will be the first foray into the Hokkaido market for Hoshinoya, the luxury accommodation brand developed by Hoshino Resorts. The plan is to build an accommodation facility with 5 floors above ground and 1 floor below ground. There will be 62 guest rooms, each of 69 square meters or more, all of which will be equipped with a kitchen. In addition to a restaurant and lounge, a hot spring pool with a view of Mt. Yotei will be built on the top floor terrace. Hoshino Resorts will start selling units this winter. The sale price and the hotel fee for general guests has not been disclosed. Hoshinoya hopes to attract skiers from Japan and abroad, especially the wealthy. At an online press conference, Hoshino Resorts CEO, Yoshimichi Hoshino, said, “The target for condominium sales is not limited to just foreigners. We also welcome Japanese investors and guests.” Hoshino Resorts also announced that it will begin operating the company’s first overseas accommodation facility in Guam. Hoshino Resorts’ resort hotel brand is called Risonare. The company will be taking over managing operations of the existing Onward Beach Resort Guam from April 2023. The beach resort has 428 guest rooms and is currently being renovated. Hoshino Resorts also announced that the company will take over operations of the Hotel Nikko Kochi Asahi Royal, in Kochi City. The hotel will be renamed OMO7 Kochi, and will reopen in 2024 after renovations have been completed. Hoshino Resorts also announced that the company is expanding in to the Shikoku region again, announcing that it had acquired the operator of the Tanigawa-Dake ropeway in Minakami Town, Gunma Prefecture, and indicated that it would work to operate the ropeway and revitalize the local community. Video Link Below: https://www.hbc.co.jp/news/7c11a3d09a8690f19f79e455b6c32531.html September 19, 2022. Hokkaido Newspaper.
Real estate in Hokkaido is attracting attention overseas. The Japanese Yen’s depreciation makes real estate a real bargain and the ultra-low interest rates are spurring investments in tourism and office use building. Real estate in Hokkaido is attracting the attention of foreign investors. Against the backdrop of the rapidly weakening yen, individual investors are purchasing houses and land in Sapporo and the Shiribeshi area due to the sense of affordability resulting from exchange rate differences. Institutional investors are also investing in Sapporo, where high yields can be expected, driven by strong office demand and Japan's low interest rate environment. As countries around the world raise interest rates to curb inflation, the inflow of foreign money into Hokkaido is likely to accelerate. Anticipating demand from foreign visitors to Japan "This is a once-in-a-lifetime opportunity now that property prices have actually fallen due to the weaker yen, making it easier to invest." Hu Mijia (56), an investor from Changhua County in central western Taiwan, said so. Hu, who visited Japan in July, is looking for real estate in Hokkaido to invest in, and has already decided to purchase an old house in Otaru. The old house has received approval for a private lodging business, and it is said that demand from tourists visiting Japan can be expected once the Covid19 pandemic border measures are eased. The exchange rate of the yen against the U.S. dollar was around 115 yen per dollar at the beginning of this year, but it plummeted to 139 yen per dollar in July. The decline accelerated again in late August, and on September 7, the exchange rate hit 144 yen to the dollar for the first time since August 1998, 24 years ago. The real effective exchange rate index, which shows the value of the Japanese yen against a wide range of foreign currencies, also fell in July to its lowest level in fifty-one years. A real estate company in Otaru, has received a series of inquiries from investors in the United States, Hong Kong, and other countries, and the number of inquiries since August has increased by about 40% compared to the same period last year. Business sites in tourist areas such as Otaru, Niseko, and Furano, as well as detached houses, are popular, and the number of sales, including appointments, has tripled from the previous year. Inquiries from overseas are also increasing in Sapporo and there are strong inquiries for high-rise apartments for sale in central Sapporo. Investor, Pauline Suzuki (52) from Los Angeles, USA, purchased land in the Niseko ski resort area on September 7. "We can expect land prices to rise in the future, and if the yen appreciates in the future, we can also expect foreign exchange gains.” Suzuki said. The yen exchange rate, which was around 109 yen to the dollar in September last year, plummeted by about 35 yen in one year. The price of a detached house worth 10 million yen went from $92,000USD to $69,000USD. Properties in Japan look about 30% cheaper than last year and real estate transactions will increase if the yen continues to depreciate. Hokkaido offers higher yields than Tokyo Behind the rapid depreciation of the yen is the widening interest rate gap between Japan and Europe. While the Federal Reserve Board (FRB), which is the central bank of the United States, and the European Central Bank (ECB) have raised interest rates one after another, the Bank of Japan has not changed its policy of continuing its ultra-low interest rate policy. Mr. Toyonaga, Director of CBRE's Sapporo branch, a major real estate service company, points out that, “The widening interest rate gap is causing overseas funds to turn their attention to Japanese real estate. This is because interest rates are lower than in other countries when borrowing the funds necessary to acquire real estate, and more profits can be expected after deducting the repayments from the income earned from rentals.” In June, an office building developed by a special-purpose company affiliated with a Hong Kong investment company opened in Chuo-ku, Sapporo. Compared to the Tokyo metropolitan area, where land prices are soaring, Sapporo is attracting attention as an investment destination with high demand for residences and offices, where investment costs are lower and yields are higher than in the Tokyo metropolitan area. However, it is unclear how long the ultra-low interest rate policy will continue, and some foreign investors believe that now is the time to sell, as they are wary of an interest rate hike. The Bank of Japan's monetary policy is likely to have a significant impact on the real estate market in Hokkaido. August 6, 2022. Hokkaido Newspaper.
Niseko Alpen Hotel to undergo large-scale renovations from spring 2023. Tourism demand is expected to recover to pre-pandemic levels. Tokyu Land Corporation, based in Tokyo, has decided to begin large-scale renovations of their Niseko Alpen Hotel in the Hirafu district of Kutchan Town, next spring. Tokyu Land Corporation has been considering renewing the facility for quite some time and in anticipation of a recovery in tourism demand, it was decided that it was necessary to proceed with the project as soon as possible. The Niseko Alpen Hotel will be closed for one year from April next year due to construction. The Niseko Alpen Hotel is a reinforced concrete structure with 125 rooms with 4 floors above ground and 2 floors below ground. Directly adjacent to Niseko Tokyu Grand Hirafu Ski Resort, it is known as the main accommodation facility in the Hirafu ski resort area. In order to strengthen the resort business in the area, Tokyu Land Corporation will renew the dilapidated facilities that first opened in 1986. Tokyu Land Corporation is expecting an end of the coronavirus pandemic and an increase in domestic and foreign tourists and as such, have decided to start large-scale renovations of the hotel next spring. The construction period is scheduled to be one year, and is subject to change depending on the construction situation. A company spokesman said, “We are still considering the details of the construction plans.” In addition to the hotel, the restaurant, shop, large public bath, and swimming pool will also be closed. Other affiliated facilities such as the Grand Hirafu Ski Resort and Aya Niseko, a condominium in the Hirafu area, will continue to operate as usual. 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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