Kutchan is a charming, rustic town approximately 15 minutes away from the world-renowned Niseko ski resort. Lately, it has become an epicenter of real estate issues as the price of land skyrockets. Residential property prices in Kutchan have almost tripled since 2017. This unaffordable surge in cost is devastating local residents, who are already suffering from the combination of stagnant wages and increasing living costs. Foreign buyers are inundating the market, hoping to find holiday homes here. This increase in demand has driven up prices, forcing many long-time residents out of their own city.
Niseko is known for its world-class powder snow that’s lovingly called “Japow.” This unique weather phenomenon results from cold Siberian winds colliding with the mountains of Hokkaido after picking up moisture from the Sea of Japan. This climatic boon has since attracted persons from all over the world, who are anxious to check out what the region’s skiing and snowboarding options. The increasing competition for real estate has produced profound burdens for people living and working there.
Stagnant Wages and Rising Costs
The Japanese economy has languished for decades, since their colossal crash of the 1990s. Consequently, millions of workers have suffered through decades of wage stagnation. Minimum wage has significantly different values across regions. Consequently, those working in rural areas such as Kutchan take home much lower pay than their counterparts in the major metropolitan hubs. Yet this economic backdrop has pushed local residents to the brink, unable to keep up with the increasing costs of housing and living.
In recent surveys conducted by local government officials, residents expressed mounting concern over the escalating cost of rent and land. Naoya Numata, a local community leader on the ground, emphasized the need to act.
“Even at town council meetings, a lot of people saying that they really want something done to solve the housing difficulties,” – Naoya Numata.
As he pointed out, though many residents want to stay in Kutchan, the financial realities are making that choice harder and harder.
“They really want to live in this town, but it’s hard for them to do so.” – Naoya Numata.
Things get even more dire when local wages don’t keep up with property acquisition. While property prices are still modest compared to other markets such as Australia, this gap imposes substantial hardship on residents. Jun Wakiyama, a resident, remarked on this disparity:
“The salaries have not kept up with the rise of the market.” – Jun Wakiyama.
The Foreign Influence on Property Prices
This one-two punch of consistent, powdery snow and thrilling, tourist-friendly attractions have made Niseko a hot spot for foreign buyers. This trend has exploded most notably in recent years. As an illustration, in 2023, nearly 100% of property development applications in Kutchan originated from foreign nationals. They were intent on developing vacation residences and condos. This trend has further changed the center of gravity for real estate investment away from Niseko proper to its surrounding areas, including Kutchan.
One man who has personally witnessed the immense benefits that tourism development brings to local communities was local business owner, Norihiko Suzuki. He focused on the overlooked issue of increasing property values.
“We can’t stop prices from going up, so we changed our perspective to how we can maintain local livelihoods,” – Norihiko Suzuki.
He had explained the role that international tourists have played in demanding proof of Niseko powder snow’s unique characteristics, thereby increasing global recognition and demand.
“Many tourists from Australia came here, and they realised how valuable this powder snow was,” – Norihiko Suzuki.
As news spreads that Niseko is the next hot destination for international tourists, prices have only further skyrocketed. Jackson Hey, a frequent visitor to Niseko, noted the rapid rise in its popularity:
“Once word gets around Niseko’s pumping, you see it all over the news, it just gets more popular.” – Jackson Hey.
Local Residents Respond
The local residents response has been outrage at the land grabs and disappointment as they have tried to swim upstream in this changing environment. Many individuals like Natsuki Sato have found their dreams of building or buying homes slipping away due to rising costs.
This trend has generated anxiety and resentment among residents who don’t want to see their community’s character and affordability undermined. Now, local officials are caught in the squeeze between growing a healthy tourism economy and quality of life that attracts their residents.
“There is a pattern where foreigners want to buy holiday homes or condominiums.” – Naoya Numata.
As stakeholders search for solutions that could support both economic development and local livelihoods, it remains clear that addressing affordable housing will be crucial for maintaining Kutchan’s unique charm.
As stakeholders search for solutions that could support both economic development and local livelihoods, it remains clear that addressing affordable housing will be crucial for maintaining Kutchan’s unique charm.
Leave a Reply