Otaru Update - Japan's best ski town investment?

We are tapped into to Otaru. We own two homes. We’ve sold forty-plus in the last year. And every morning and every night I go through EVERY Japanese listing site there is. So when I tell you what’s happening in Otaru, I’m not reading a press release. I’m on it daily.

Which also means I might be biased. And I’ll tell you exactly where.

So lets dive into Otaru.

It’s been the top-clicked city on our site. Month after month for a year straight.

And not by a little. It’s consistently buried every other city we list.

Now remember, Nipponhomes grows every day, but it’s still a small sample size and there just clicks. Clicks are not sold homes.

So let’s see what the government says.

Has there been any appreciation in Otaru? Yeah. A lot, actually.

In one very specific spot.

The top commercial street in Otaru, Sakaimachi, the canal tourist strip, is up eighteen point nine percent in one year.

And remember, Otaru land prices fell for twenty-seven years straight, it wasn’t until just before covid things started turning around for this little coastal city.

It’s the third straight year it’s gone up (for this specific MLIT plot, the city itself has had 10 straight years of commercial land value increases), and it’s the biggest jump since nineteen ninety-three AND the second fastest in all of Hokkaido, only Furano beat it…

But this is focused just on commercial land. Residential land is down zero point eight this last year

This graph shows a residential market that hit bottom around 2018, with some positive growth years sprinkled in since then and a sustained floor for the last seven years.

So Otaru has been holding this floor for seven straight years now and that’s positive. If you buying now it looks like your buying at the floor.

With commercial land essentially booming again, ten consecutive years up, and the second fastest plot in Hokkaido, we can hope it starts to spread into the residential areas. And my business alone has seen a massive shift in focus toward Otaru.

It’s not just me either. Everyone I talk to, agents in Sapporo, our competitors, Otaru is HOT in the foreigner market right now.

And remember, MLIT’s residential survey points are ordinary local housing plots in ordinary neighborhoods.

So the citywide residential average may genuinely not be picking up what’s actually happening on the ground yet, it often lags. Add on top, the fact that these numbers are valued January first and published in March, so they’re already looking backwards.

Which is why I’m casually optimistic we could see some positive growth in residential land ahead.

But I could be completely wrong. Maybe I’m too tapped in to see past my own bias.

If you want even more information about Otaru. Buy our Investment Guide. We worked really hard it on guys. Its full of really detailed data.

Ready to buy a house?: Book a call here

Browse opportunities yourself: Check out current listings at Nipponhomes.com

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This content is for informational and educational purposes only and reflects my personal opinions and experience. I am not a licensed financial advisor, tax advisor, or attorney. Readers should conduct their own due diligence and consult qualified professionals before making any investment decisions.