The coastal city of Omaezaki in Shizuoka Prefecture suffered a big fall in land prices and is seeing vacancy rates soar as property transactions and prices plummet.

The tsunami in northern Japan and the Fukushima nuclear disaster have had a big effect on this coastal town which is also home to the controversial Hamaoka Nuclear Power Plant. Vacancy rates are climbing and property transactions are down.

3km away from the Hamaoka Plant, there are signs all over the place saying “Vacancies available”, “Land for Sale” and “Room for Let”. The Hamaoka Plant has been temporarily suspended while its operators, the Chubu Electric Power Company, work on building a tsunami wall to protect the plant from the next Tokai earthquake. The plant sits in one of the Tokai earthquake’s projected epicenter zones. Local residents have been moving out of the area, leading to high vacancy rates and a worsening property market.

Between 2005 and 2010, land prices in Omaezaki City fell between 0.8 ~ 2.9% annually, but in 2011 the land prices fell by as much as 6.7%. Shortly after the March 11 disaster, real estate agents reported a flood of phonecalls from tenants who wanted to move out as soon as possible. Many of the reasons given were that the tenants’ family members were concerned about radiation and wanted them to return to their home towns.

Typical rent for a 56asqm 3-bedroom apartment fell by half from 60,000 Yen/month to 30,000 Yen/month. Rents continue to fall as landlords try to attract tenants.

In the past, the long coastline and sand dunes made the area popular for its ocean view properties. You can still see billboards along the coastal highway which read “Pacific Ocean Views. Welcome to Omaezaki City”. However, the “Ocean View” sales pitch is now being avoided. One agent reported that he had an interested buyer from outside the prefecture who was looking to buy property with ocean views in which to spend his retirement. After the March 11 disaster, the client said he was no longer interested. The average of 1 to 2 inquiries a month from outside the prefecture had suddenly stopped.

Neighbour from hell: The Hamaoka Nuclear Power Plant located in the middle of Omaezaki City

The only positive aspect to the property market in Omaezaki City is that demand is high for land in elevated positions high above sea level. The city has a designated evacuation site that is 30 meters above sea level. Land around that area was typically difficult to sell prior to March 11 but agents are now reporting an increase in inquiries from residents who want to move closer to safe evacuation sites, some even saying they would be happy to camp on the land, as long as they were at a safe distance above sea level.

There is an 87% chance of the Tokai earthquake occurring within the next 30 years. A tsunami following the earthquake would reach the shore in only 5 to 10 minutes. The estimated magnitude 8 earthquake is expected to have an epicenter in southern Shizuoka, Suruga Bay or the Enshu-Nada Sea. The predicted death toll is 7,900 ~ 9,200, most of which will be in Shizuoka Prefecture. The risk of damage to the Hamaoka Nuclear Plant and the threat of a scenario similar to what is happening in Fukushima has local residents very concerned.

For Sale

Any buyers? This house along the 357 coastal highway in Omaezaki is priced at 80,000,000 Yen. It was used as the setting in the 2005 movie “House of Himiko” (Mezon do Himiko). It is in a prime location less than 50 meters from the pacific ocean and 3km East of the Hamaoka Plant. It was listed in 2011 and is still on the market in 2014.

Source:
The Asahi Shimbun, September 21, 2011.

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