REAL ESTATE NEWS
While Kutchan land prices have remained flat for three years, they are expected to rise in 2024, in line with the national trend.
Kutchan land prices enjoyed a long period of pre-Covid strong growth, seeing the highest rate of increase in Japan for six years on end until 2020, buoyed by the area’s increasing global prominence as a resort destination.
With international tourism disappearing from early 2020 until October of last year, Kutchan’s prices remained flat from 2021 through 2023, but notably didn’t depreciate as the fundamentals causing their recent rise remained in place.
Other Shiribeshi areas also remained flat during the Covid era and like Kutchan, are expected to see a restart of price increases as tourists return to the region.
Nationally, Japan has had the second year of increases for key land prices, defined by Japan’s National Tax Agency as land adjacent to major roads.
As overseas visitors are expected to keep coming – perhaps in record-breaking numbers – and the national government has a goal of 60 million annual visitors by 2030, land prices are expected to continue increasing nationally.
Hokkaido’s land prices for 2023 saw a nearly 7% increase, the largest of all the country’s prefectures.
This was propelled by a sharp demand increase in the Sapporo area and commercial land
increases in anticipation of the Hokkaido Shinkansen (bullet train) extension which will connect Sapporo with Hakodate by high-speed rail in fiscal 2030.
Sources:
Hokkaido Shimbun – 3 July 2023
Nikkei Asia – 3 July 2023
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