Japan Government Report Land Price Rise in Resort Destinations
Japan's Ministry of Land, Infrastructure, Transport and Tourism (MLIT) have published their annual Standard Land Price summary.
Despite a drop in overall land prices, some resort areas have experienced growth. We bring you some of the highlights below.
Huge Value Increase in Karuizawa
Karuizawa (pictured in the header image above) experienced a significant increase in residential land value, up 10.9% on the previous year. This resort town in Nagano prefecture is high above sea level and has long been popular as a holiday destination for Tokyo residents looking to escape the summer heat, and now, with the shift toward remote working during COVID, is becoming a much more attractive full-time living proposition.
We currently have 15 Karuizawa listings on Uchi Japan.
Miyakojima Leading the Way in Okinawa
As we mentioned in our Okinawa Guide, the island of Miyakojima has seen some legendary value increases over the years. Following a 37.3% value increase in 2020, Miyakojima land has increased in value by 22.9% this year. Huge news for those buyers who invested a few years back and a fairly strong sign that continued value growth is on the horizon for those keen to get in on the action on this island paradise. Tokyu Resort were featuring one Miyakojima Island listing on our site, however it was snapped up in no time!
We will keep our social media followers and newsletter subscribers updated the moment more opportunities in Miyakojima come online.
Niseko Plateaus Slightly, Still Growing
Niseko has set itself incredibly high standards when it comes to land value growth (+66.% in 2019 alone, for example) and despite the impact of COVID on inbound tourism, land prices continue to rise this year. The MLIT report a 6.5% increase in Niseko value in the past year, significantly less than previous years but still on the up and likely to rebound even more strongly once borders reopen. Development has continued on almost unobstructed by COVID and opportunities abound for buyers looking to enter the Niseko market.
Hokkaido as a whole experienced a positive value increase for the first time since 1991, driven by increased demand for suburban properties around the Sapporo area. A decrease in value in rural areas (excluding resort towns) and an increase in value in urban and suburban areas reflects a population shift trend in Hokkaido, and Japan more largely, with many young people migrating away from the country and toward the city as they enter adulthood.
Commercial Land Suffers
The MLIT reports that land value has decreased by 0.4% in Japan across the board. The biggest decreases in value are seen in commercial land in Japan's big cities, particularly in Osaka where shopping precinct Dotonbori suffered an 18% decrease in land value. The reasons for this are obvious with the COVID situation forcing many city-centre-based retail and restaurant businesses to either shut or scale back operations significantly. Working from home arrangements to limit COVID spread, plus a halt on tourism, have created a dearth of foot traffic for these business too and many are falling victim to the increased popularity of online shopping.
Leading property investment advisory Propeterra have recently published their Niseko market report.