Nagano land prices rise as Hakuba and Karuizawa drive resort demand

On March 17, the Nikkei Shimbun reported on newly released 2026 official land price data from Japan’s Ministry of Land, Infrastructure, Transport and Tourism (MLIT), showing that land values in Nagano Prefecture continued to rise, driven by strong demand in internationally recognized ski destinations such as Hakuba and Nozawa Onsen, alongside sustained migration-led demand in Karuizawa.

Matsumoto Castle in Nagano Prefecture. Photo by Alexander Schimmeck on Unsplash

The trend highlights Nagano as one of the few regional markets in Japan demonstrating consistent growth, even as many rural areas continue to face long-term price declines.

According to Japan’s Ministry of Land, Infrastructure, Transport and Tourism (MLIT), officially assessed land prices (as of January 1, 2026) increased 1.1% across all land-use categories, marking the third consecutive year of gains.

Hakuba and Nozawa Drive Commercial Land Growth

This upward momentum is most visible in commercial land markets, where prices rose 0.7% on average across the prefecture.

Hakuba Village led all municipalities with a sharp 35.2% increase, followed by Karuizawa Town at 13.7%. Miyota Town, which has gained popularity among urban migrants, returned to growth with a 1.1% rise. In core regional cities such as Nagano City (+1.4%) and Matsumoto City (+1.2%), condominium development has added further upward pressure on land values.

A commercial site near Hakuba’s Happo-One ski resort recorded a 35.2% increase, ranking third nationwide among all commercial land price gains. The scale of appreciation underscores the strength of demand in internationally recognized resort zones.

Foreign Investment Accelerates Resort Development

Rising demand for condominiums and hotels continues to drive price acceleration across Nagano’s resort markets, supported in part by increasing foreign capital inflows.

“Demand for condominiums and hotels is pushing up land prices, with overseas investors pursuing large-scale developments,” said real estate appraiser Kazuhiro Imamaki.

Despite several years of strong appreciation, Hakuba and Nozawa Onsen are still widely viewed by international investors as relatively undervalued compared to global resort markets. This perception is sustaining high-value land transactions and reinforcing upward price momentum.

Karuizawa Benefits from Migration and Remote Work Trends

Around Karuizawa, land values are supported not only by hotel development plans but also by sustained inbound migration.

The normalization of remote work has accelerated demand for dual-location living - where urban residents maintain a secondary base in regional areas - particularly among Tokyo-based professionals.

Karuizawa has emerged as a preferred destination for this lifestyle shift, with demand spilling over into neighboring Miyota Town.

This migration-driven demand is adding a structural layer of support to land prices beyond traditional tourism cycles.

Residential Markets Mirror Resort Demand

A similar pattern is emerging in residential land markets. Prices rose 1.2% on average - marking a fourth consecutive year of growth - with Hakuba (+22.8%), Nozawa Onsen (+21.7%), and Karuizawa (+12.1%) leading gains.

The strongest-performing residential site in the prefecture was located in a villa area of Hakuba, where prices surged 33.0%. In Nozawa Onsen, high-ranking sites were concentrated near the ski resort, reflecting continued demand for proximity to core tourism infrastructure.

Nationally, Hakuba recorded the highest residential land price growth in Japan, while Nozawa Onsen secured multiple top-five positions.

Supply Constraints Reinforce Price Growth

In both Hakuba and Nozawa Onsen, limited availability of large land parcels is amplifying upward pressure on prices.

“Nozawa Onsen is a traditional hot spring town where commercial and residential areas are intermingled, leaving very little supply of large sites,” Imamaki noted. “Much of the demand involves acquiring land where businesses have closed.”

This structural supply constraint, combined with sustained inbound demand, is creating a market dynamic where price growth is increasingly resilient.

Myoko’s Growth Adds Momentum to the Northern Nagano Corridor

Beyond Nagano Prefecture, nearby Myoko City in Niigata is emerging as a complementary growth driver, particularly for the northern Nagano corridor.

Located within close proximity to Hakuba and easily accessible from Nagano City, Myoko has seen rising investor interest tied to large-scale resort development initiatives.

Notably, Singapore-based Patience Capital Group (PCG) has announced plans to develop multiple hotels and commercial facilities in the area over the coming decade.

This wave of investment is contributing to a broader regional uplift, as capital targeting Myoko reinforces investor confidence across adjacent markets, including northern Nagano.

The interconnected nature of these resort areas means that growth in one location increasingly supports land value appreciation across the wider alpine tourism zone.

Source:

Nikkei Shimbun (Japanese only; paywalled)