[Japan’s No. 1 Land Price Increase Rate] Are Niseko and Rusutsu in Hokkaido Really Profitable? Part 1

• 2024.03.05
  • Uncategorized

This may be out of the blue, but do you know where real estate prices are rising the most in Japan ?

And it’s not just this year.

It just keeps going up and up.

Well, today I would like to talk about whether real estate in Niseko and Rusutsu, which my fellow investors are actually doing, is really that popular?

What should I do to invest? I’ve been researching about this, so I’ll write about it.

• The increase rate in 2020 before the coronavirus was +57.5%/year . Niseko, Hokkaido, has topped the national land price increase ranking for six consecutive years.
• Although things have calmed down after the coronavirus, the price of land has increased six times in seven years .
• Powder snow , which occurs due to Japan’s climate characteristics, is popular among advanced skiers.
• Hokkaido has been at the top of the World Ski Awards since 2013 .
• The number of ski resorts in China is small compared to the number of skiers, and even across Asia, foreigners come to Japan to ski.
• The top three places in the world for snowfall are all in Japan. Even if global temperatures rise, Hokkaido’s snow will remain.
• Land prices are expected to rise until 2030 when the Hokkaido Shinkansen arrives .

In this article, the author, who was originally a student with a rent of 4,000 yen, joined Goldman Sachs, a major US securities company, to study, and has been investing throughout his life.

We will introduce the knowledge you should know for those who are actually starting to study finance and investment.

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Table of contents [ hide ]

• 1 Where is the fastest rate of increase in land prices in Japan?
• 2 Reasons why Niseko became popular
• 3 Japan’s unique powder snow
• 4 Even if the world’s snow melts…
• 5 World Ski Awards
• 6 Difference between ski population and number of ski resorts
• 7 Will it continue to rise?
• 8 Summary
• 9 Manetre University
• 10 First, register for free LINE and get special benefits

Where is the highest rate of land price increase in Japan?

When looking up the price of land, compare it based on the published price . The Land Appraisal Committee of the Ministry of Land, Infrastructure, Transport and Tourism announces the price of land in square meters every March.

This allows us to see which regions have increased in value each year .

And this is for Reiwa 4.

Where in Japan has the number increased the most in 2021 and 2020? I think most people thought it was Tokyo.

It’s actually Hokkaido.

This is the rate of increase in land prices (housing), but it’s roughly the same when looking at commercial.In fact, the top 10 are all in Hokkaido.

The national average is +0.5%, but you can see that Hokkaido’s increase rate is an incredible 26% .

By the way, Kitahiroshima city has become popular due to the construction of the new Escon Field Hokkaido, which is planned to become the home stadium of the Nippon-Ham Fighters.

Now, do you know about the city that ranked first in land price growth for six consecutive years by 2020, before the coronavirus?

The name of the town is Kutchan Town .

It is a famous town in the Niseko area.

The annual increase rate is an astonishing 57.5%. Now, let’s take a look at the trends in land prices in Kutchan Town.

The land price in 2016 was 50,000 yen, but in 2023 it will be 300,000 yen, an increase of about 6 times.

This is a big deal.

By the way, the increase rate for 2022 is +5.54%.

And this year, the neighboring village of Rusutsu has surpassed Niseko’s rate of increase.

The increase rate in 2021 was +2.80%, but the increase rate in 2022 exploded to +9.29%!

This abnormal rate of increase.

And the rate of increase has fallen since 2020. And land prices in Rusutsu village are starting to rise again.

That’s suspicious

So, I went there to investigate.

• The top 10 in the 2022 published price increase rate ranking are all in Hokkaido
• While the national average rate of increase is +0.5%, Hokkaido’s rate of increase is +26%.
• 2020 before Corona. Increase rate +57.5%/year. Niseko has been at the top of the national land price growth rate ranking for six consecutive years.
• Although things have calmed down after the coronavirus, land prices have increased 6 times in 7 years.
• Niseko’s land prices are also starting to rise, but the neighboring village of Rusutsu has overtaken them.
• The land price increase rate in Rusutsu Village is +9.29% in 2022. An explosive increase from +2.80% in 2021.

Why Niseko became popular

When I went there, I was surprised to see how stylish the buildings were.

There are so many things being built that it seems impossible for a Japanese person to spend money to build something like this.

These are all buildings in Niseko .

I thought you were overseas.

So why are the prices of land in Niseko rising so much?

In the previous chapter, I wrote that the rate of increase in land prices has slowed down a little due to COVID-19, so I’m sure some of you have already guessed it. And these Western-style buildings…

Did you notice?

Yes, it is foreigners who are raising the price of land .

The main reasons why foreigners like Niseko are as follows.

• Japan’s unique powder snow (Japau)
• Japan’s snow that won’t melt even as the world’s average temperature rises
• World Ski Award Winner
• Difference between ski population and number of ski resorts

Japan’s unique powder snow

Niseko, Hokkaido has a famous type of snow called powder snow.

I went skiing myself, so I know that the quality of the snow is completely different.

So fluffy

is.

This powder-like snow quality is unique to Japan, and is popular around the world as Japan’s powder snow, commonly known as Japau.

Now, let me tell you the mechanism by which Japau, which is not found in other countries, is created.

When I was in elementary school, I think I learned why there is so much snow on the Sea of ​​Japan side .

Cold continental winds from the Siberian continent cross the Sea of ​​Japan riding the seasonal winds.

The Sea of ​​Japan is called a warm current, and the cold winds that cross there replenish a lot of water vapor on top of this warm current.

When it hits the Chuo Mountains, it causes heavy snowfall.

This air containing a lot of water vapor is what makes the japau so fluffy.

“Honshu has the Chuo Mountains, but is there such a big mountain in Niseko?”

If you’re a good kid, you’ll probably ask me some questions, so I’d like to introduce you to the mountains of Niseko .

This is a photo I took from the Niseko ski resort.

Real estate prices will vary greatly depending on whether you can see Mt. Yotei , also known as Ezo Fuji .

Doesn’t it look like Mt. Fuji?

That’s no wonder; Mt. Fuji’s inclination angle is 28 degrees, while Mt. Yotei’s inclination angle is 27 degrees, which is almost the same no matter what angle you look at it.

It looks like a tiny Mount Fuji.

By the way, the height of Mt. Yotei is 1898m.

Powder snow is created when moist air collides with Niseko, which is full of mountains .

Even if the world’s snow melts…

Surprisingly, many people do not know this, but in fact, the places north of Aomori are ranked 3rd and above in the world’s top 10 annual ranking for snowfall .

I explained earlier why there are so many of them.

Global warming is now a worldwide problem.

By 2030, the global average temperature is expected to rise by 1.5°C.

If you do that, you won’t be able to enjoy skiing in areas with little snow.

It is precisely because foreign investors have such a global perspective that they find Hokkaido so attractive as a place where you can enjoy skiing to the very end .

world ski awards

There is a famous award called the WORLD SKI AWARDS , which is said to be the Oscar of the world ski tourism industry.

Among the numerous ski resorts around the world that have won this award, Niseko has held the title for many years.

They have won four titles since 2013.

2013?

Yes, this is Conan-kun for the second time today.

Land prices in Niseko began to rise around 2015.

That’s right. After receiving this award at the World Ski Awards, people from overseas started coming to Niseko explosively . By the way, it is said that the real origin of Niseko was when Australians spread the word about Niseko to the local community, which led to foreigners coming to Niseko.

Niseko in particular has a lot of off-road riding.

When you normally ski, you are often only allowed to go on safe ski runs.

However, people who ski want to go through the forest and trees, right?

Surprisingly, it is not possible to enjoy such off-road skiing in Japan, and Niseko is popular among overseas skiers because it is possible to enjoy such off-road skiing.

By the way, who do you think won the ski award in 2017?

It’s Rusutsu .

Moreover, Rusutsu won both the ski resort and ski hotel categories.

You’re starting to see it, aren’t you?

Difference between ski population and number of ski resorts

Finally, there is one more reason why Niseko is preferred by foreign investors.

That is the difference between the number of skiers and the number of ski resorts.

Below is the number of potential skiers in each country.

The number of skiers in the United States is 25.02 million, which is to be expected, but China ranks third with 13.2 million skiers.

On the other hand, what if we looked at the number of ski resorts in the world that have five or more lifts?

The United States has 356 ski resorts, but Japan ranks second.

It’s amazing that this small island nation ranks second in the world.

China, on the other hand, only has 82 ski resorts.

Although China has a large skiing population, there are only a small number of resorts, so they have no choice but to go abroad. In fact, I think you can see that basically Asian people have no choice but to come to Japan .

Particularly in inland areas of China, the winter temperature is extremely cold at -20°C, but on the other hand, there is little natural snowfall due to artificial snowfall.

As I mentioned earlier, moisture is needed to make snow, and it is difficult to absorb moisture in the depths of the continent.

On the other hand, Japan’s Hokkaido is popular because investors expect that its winter temperatures do not reach -10℃ and its abundant snowfall will maintain strong demand from overseas. hey.

Will it continue to rise?

“It’s already gone up that much, will it continue to go up?”

Some of you may have thought so.

As I will explain in Part 2, land prices in Niseko have risen considerably.

To be honest, the prices in Ginza, Tokyo are also surprising.

However, despite the large number of foreign companies that have entered the area, it is also true that the area is being developed to great acclaim.

Currently, to go to Niseko, it takes 2 hours from Tokyo to New Chitose Airport, and from there it takes 2 hours by car.

You will be able to go there with just one Shinkansen .

I also went to see the construction site and it was under construction.

The Shinkansen will be installed at Kutchan Station (near Niseko), and when this line opens, the number of foreigners is expected to increase even further.

Of course, there is also talk that Hokkaido is a candidate for the 2030 Olympics.

It would be nice to have that, but with so much construction work already being done on the Shinkansen, we can’t back down.

Personally, I predict that the rise will continue.

Considering the rate of increase before the coronavirus, there should still be room for growth.

summary

This time, I wrote about the excitement of Hokkaido.

In fact, the rate of increase in land prices was consistently the highest . Why are there so many foreigners? When I looked into the reasons, I found out a lot.

• The increase rate in 2020 before the coronavirus was +57.5%/year . Niseko, Hokkaido, has topped the national land price increase ranking for six consecutive years.
• Although things have calmed down after the coronavirus, the price of land has increased six times in seven years .
• Powder snow , which occurs due to Japan’s climate characteristics, is popular among advanced skiers.
• Hokkaido has been at the top of the World Ski Awards since 2013 .
• The number of ski resorts in China is small compared to the number of skiers, and even across Asia, foreigners come to Japan to ski.
• The top three places in the world for snowfall are all in Japan. Even if global temperatures rise, Hokkaido’s snow will remain.
• Land prices are expected to rise until 2030 when the Hokkaido Shinkansen arrives .

In Part 1, I wrote about why foreigners are paying attention to Hokkaido.

In Part 2, I will write about how much land there actually is in Niseko and Rusutsu, where it is attracting attention, and how to invest.