Half of Sapporo's new apartments remain unsold
For the first time in five years, more than half of the newly completed condominiums in Sapporo City remain unsold. Although sales were strong in 2013, buyers are becoming increasingly priced out of the new apartment market due to rising prices. These prices have been underpinned by higher construction costs, including raw materials and labour, which means that developers are either unable or reluctant to reduce the end prices offered to consumers.
Over 90% of Hokkaido’s new condominiums are located in Sapporo. In 2015, 51% of units in condominiums that had already been completed remained unsold by developers.Read more
Chinese fund developing private golf course and resort in Hokkaido
Beijing-based fund Ittatsu Kokusai are developing an 18-hole private golf course and resort in Kimobetsu, Hokkaido.
Located about 30km east of Niseko, the resort will include 380 vacation home sites designed for wealthy Asian buyers. The project is estimated to cost around 10 billion Yen. The golf course has already been completed and sales will begin on the vacation lots from mid-October.
New apartment prices in Sapporo at record high
The average price of a brand new apartment in Sapporo, Hokkaido, reached 32,082,000 Yen in 2013 - a level not seen since Japan’s bubble economy in the late 1980s. The rising prices have been brought on by the increasing cost of construction, an increase in the consumption tax rate which caused some last minute buying and an expansion in the tax reductions on home loans.
Industry insiders are expecting prices to continue to grow, but some are worried that the market could cool down if prices become unaffordable. Read more
Foreign developers caught by zoning regulations in Niseko
Development in parts of Niseko's ski fields is being stalled due to inconsistencies between national and prefectural government building approvals.
In recent years, a number of hotels in Niseko have been purchased by foreign funds, closed down and in many cases demolished. The foreign developers acquired the hotels with the aim of building condominium-type hotels and resort apartments which would then be sold to wealthy foreigners.
However, a number of these sites have been sitting vacant without any signs of construction.
Why the hold up?Read more
Hokkaido facing difficult task of regulating transactions on forestry
Regulations requiring advance notification of the sale of land containing a water source came into effect on October 1st, but Hokkaido is already facing the difficult task of identifying and contacting land owners.
In Hokkaido, 53 areas were designated for water resource preservation. Correspondence has been sent to the 4,000 affected land owners, but only 60% could be contacted. The whereabouts of the remaining land owners remains unknown.Read more