A shortage of housing in Nozawa Onsen is creating headaches for new residents. The bustling hot spring and ski resort village had entered into a decline in the 1990s and 2000s as the domestic ski boom waned, but has seen a recovery since the 2010s as foreigners descended on the mountainous destination, opening up tourism and accommodation businesses.
The Shinano Mainichi Shimbun newspaper reported that the recent post-pandemic boom in foreigners immigrating to Nozawa has led to some extra pressure on demand, with a housing shortage become apparent.
Demand for accommodation facilities and restaurant spaces has risen due to the return of inbound travelers, and foreign investors have been keen to acquire real estate to use for their own business purposes. This has started to push up property prices. Last year, the village’s Standard Land Price for commercial land increased for the first time in four years. A land survey site at the bottom of the ski slopes saw an 8.54% increase in its Standard Land Price in 2023, although the value is still 33% below its 2010 level.
Of the 356 businesses in the local tourism association, 40 lodgings and hotels are operated by foreign residents. Of the village’s population of 3,500 residents, 10% are foreigners, including a number of Australians.
Finding real estate to buy is becoming noticeably challenging, with very few listings making it through the traditional realtor channels. Most properties are traded off-market, between private individuals. Accessing those properties usually requires the right connections. The historically cheap Yen has also meant that some properties are trading at higher and higher prices.
Source: The Shinano Mainichi Shimbun, February 8, 2024.
