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Japan's National Tax Agency released its 2026 roadside land value assessment on July 1, showing that Otaru's highest-value location rose 18.9% year-on-year - a third consecutive annual increase and the second-highest growth rate in Hokkaido. Meanwhile, Kutchan returned to growth for the first time in two years, and Yoichi was flat.

Why Otaru is being re-rated

Otaru's appeal has been strengthening on multiple fronts: recovering inbound tourism, more frequent cruise-ship calls, investment in accommodation and commercial facilities, and renovations that give historic buildings new life. With convenient access from Sapporo, Otaru is drawing attention from investors in Japan and overseas not only as a tourist city but as an area with expected asset-value growth.

Hokkaido investment is no longer just about Niseko

Real estate investment in Hokkaido has traditionally centered on Kutchan and Niseko. Today, capital is spreading to areas with distinct strengths of their own - Otaru, Furano, Yoichi, Muroran, and Noboribetsu. As Hokkaido as a whole gains recognition as an international destination, land values are beginning to move across a wider footprint rather than in isolated pockets.

The potential we see in Furano

We view Otaru's rise not as a one-off event but as part of a broader flow of investment capital into Hokkaido. Within that flow, we focus on Furano: a globally recognized destination with four-season demand, growing accommodation needs on the back of the inbound recovery, and more room for price appreciation than metropolitan Tokyo or Niseko. Through projects such as Furano Crystal Village, we are advancing development in areas with strong long-term prospects.

Land value as a measure of expected future

Roadside land values are more than tax inputs. They reflect the market's assessment of where people gather, where investment flows, where businesses expand, and where future growth is expected. Hokkaido is becoming an investment region watched from around the world. We regard this shift as a medium- to long-term growth opportunity rather than a temporary boom, and will continue to pursue development that raises regional value.

Hotel construction and development plans are multiplying across Otaru, driven by a strong recovery in tourism. Amid this momentum, Nihon Shintatsu is advancing its own hotel project in partnership with Germany's TUI Hotels. Here is a look at the city today and the future we envision.

Tourism recovery is moving the city

Visitor numbers to Otaru have recovered steadily in recent years. In fiscal 2025, annual overnight stays surpassed one million for the first time, and total tourism spending exceeded 100 billion yen, powering the local economy. Accommodation development has accelerated on this momentum: the number of lodging facilities in the city has doubled in four years, adding capacity for roughly 2,000 guests.

Key projects now underway include a 244-room hotel - the largest in the city center - opening next spring in front of JR Otaru Station, a new inn opening shortly in a historic shopping street, and successive market entries by national operators such as Daiwa House Industry and Route Inn. Including planned projects, more than 600 additional rooms are expected over the next several years.

Renewal of port and tourism infrastructure

Remarkable infrastructure upgrades underpin this investment. Improvements to Otaru Port's No. 3 Pier now allow large cruise ships to berth adjacent to the city center, and a new international information center and sightseeing-boat terminal have opened. The vision of Otaru as the gateway to wider regional tourism is taking clear shape.

The kind of hotel we envision for Otaru

Within this trend, Nihon Shintatsu is advancing plans for a new hotel in partnership with TUI Hotels & Resorts, one of the world's leading tourism companies headquartered in Germany. Working with a partner of TUI's depth and track record, we aim to create a place to stay that brings a perspective and quality Otaru has not seen before.

Otaru's appeal goes beyond the bustle of a tourist destination: stone warehouses that speak of past prosperity, the atmosphere of a port town, and a culture alive in everyday life. Our role is to build hotels that preserve - and indeed highlight - these distinctive values, growing together with the city's character rather than riding a passing boom.

Closing

The current wave of hotel development is evidence that Otaru has entered a new stage of growth. At the same time, measures such as an accommodation tax are being introduced to balance vitality with livability. As a company invested in this city's future, we will continue to build our business responsibly.

Nihon Shintatsu CEO Hideyuki Ishii was featured in an interview published for a condominium project operated by Daiwa House Industry. In the article, he speaks from the perspective of an executive doing business in Hokkaido about the appeal of areas including Asahikawa and the region's future potential.

Hokkaido is now attracting significant attention not only from the domestic market but from overseas investors and travelers. Alongside the growth of tourism areas such as Niseko, Furano, and Otaru, the region is entering an era that calls for new value creation drawing on each area's industry, culture, and natural resources.

Through real estate development, hotel and tourism businesses, regional revitalization projects, and partnerships with overseas investors, Nihon Shintatsu has worked to communicate Hokkaido's potential in Japan and abroad. What we value is not development for its own sake, but connecting the background and culture of the land, the history of the region, and the aspirations of the people who live there to new value.

We regard this interview as recognition of the challenges we have taken on in Hokkaido and of our vision. Under the theme of 'From Hokkaido to the world,' we will continue to serve as a bridge between regional resources and global capital.

Nihon Shintatsu's business and investment projects were featured in an Asia-focused investor media outlet covering venture capital, startups, and investment, in a special feature introducing our Hokkaido real estate investment projects.

Overview of the coverage

The feature presents the potential of real estate investment in Hokkaido - particularly the Niseko area - from a global perspective. Against the backdrop of tourism market growth, expanding inbound demand, and an established international resort brand, Hokkaido is positioned as the next global tourism investment destination.

Development projects introduced

The feature also introduces our signature development areas: luxury villa development in Niseko, a world-renowned ski resort; condominium-hotel development in Otaru, Hokkaido's gateway port city; lavender tourism and redevelopment in Furano, one of Japan's fastest-appreciating land markets; and winery and vineyard development in Niki Town under the Hokkaido Wine Valley concept. Through these projects, we are building Hokkaido as a single investment portfolio.

Toward global investment

The article also touches on our strategy going forward: expanding engagement with overseas investors, capital inflows centered on Asia, and business growth with a Nasdaq listing in view - connecting the 'Hokkaido x real estate x tourism' domain with global markets.

Looking ahead

This coverage reflects an assessment of Hokkaido's value from the perspective of overseas investors, who rate its natural resources, tourism brand, and development potential highly. We will continue to communicate value from Hokkaido to the world by unlocking underutilized assets, integrating tourism and real estate, and partnering with global capital.

Nihon Shintatsu was featured in the overseas outlet VC News. Through an interview with CEO Hideyuki Ishii, the article introduces our business philosophy and outlook.

Hokkaido combines a rich natural environment and tourism resources with diverse value in agriculture and food culture. Focusing on this potential, we pursue business development from a perspective broader than conventional real estate. At its foundation is a simple idea: discover the value dormant in a region and connect it to the world.

The article discusses our concept of 'tourism-driven real estate.' Rather than locating value in land and buildings themselves, we first draw out a region's appeal and experiential value, then give it form as accommodation and cultural facilities. By connecting these assets as a surface rather than isolated points, we raise the value of the entire area - building long-term asset value in the process.

Otaru is positioned as a key base. A historic port town with strong appeal as a destination, we are redefining it as the gateway connecting Asia and Hokkaido. Our work extends beyond Otaru: projects in Furano, the TOMAPU farm, and other areas are designed not as stand-alone ventures but as a network that lifts the value of Hokkaido as a whole.

The article also notes that we are looking toward partnerships with international capital and a Nasdaq listing. The phrase that captures this direction is 'Local Roots, Global Reach' - deeply rooted in the region, with our sights always set on the world. This philosophy runs through every project we undertake.

Priority areas going forward include international tourism resort development, initiatives combining healthcare and wellness with tourism, and businesses that fuse agriculture with food culture. We invite you to watch what value emerges from Hokkaido and how it reaches the world.

Newspaper coverage of Hokkaido's official land price survey reported rising values in Otaru and Furano alongside a widening polarization between regions.

Pronounced increases in Otaru and Furano

According to the coverage, the 2026 official land price survey shows notable gains in tourism destinations such as Otaru and Furano. Growth in inbound visitors, recovering and expanding tourism demand, and rising popularity as resort areas are pushing land prices upward, led by tourism-related districts. Furano in particular shows a sustained upward trend on growing domestic and international demand.

A widening gap with depopulating areas

At the same time, the article notes an advancing polarization across Hokkaido between areas where land prices are rising and areas where they are falling or stagnant. Where tourists gather, prices rise; elsewhere, population decline and weaker demand hold prices back. Differences in regional economic activity are being reflected directly in land values.

A fifth consecutive year of gains nationwide

Nationally, land prices have now risen for five consecutive years, with gains concentrated in urban centers and tourism destinations, while parts of regional Japan and some residential areas remain under pressure - the same polarization seen nationwide.

What makes Hokkaido distinctive

Hokkaido's vast land area amplifies regional differences, and its market is strongly influenced by tourism demand. As a result, tourism areas are appreciating rapidly while non-tourism areas change slowly or decline. We expect Hokkaido's real estate market to continue evolving under the influence of tourism demand and regional divergence.

CEO Hideyuki Ishii appeared in a Hokkaido Shimbun feature titled 'Will a second or third Niseko emerge? (Part 1): Furano's surge - the great shift begins,' commenting from an on-the-ground perspective on rising land prices, development activity, and the turning point facing the region.

The feature examines Furano's land price appreciation and urban change through the question of whether a 'second Niseko' is emerging. Centered on the Kitanomine area near the ski slopes, development of foreign-capital condominiums and lodging is advancing, and overlapping domestic and international demand is moving the local property market significantly.

The article discusses the factors behind Furano's rise: expanding stay demand anchored in ski tourism, linkage with wider regional tourism including airport access, and favorable conditions in price, supply, and construction relative to Niseko. It also notes that concentrated development can affect local life and land use, raising questions about the shape of future urban planning.

Reflecting on Furano's trajectory, Ishii commented that the continuation of what was once seen as a temporary rise in land prices has led to a re-rating of the area's investment value - pointing to a medium- to long-term flow of demand and investment rather than short-term heat, based on his experience observing the market first-hand.

Nihon Shintatsu will continue to pursue real estate that raises regional value while broadening sustainable choices for residents, local communities, and businesses alike.

Nihon Shintatsu's CEO appeared on Nippon TV's 'news zero' broadcast on December 23, 2025, discussing changes in real estate and housing conditions in Hokkaido and how to think about regional value, based on first-hand experience in the field.

Nihon Shintatsu has long focused on the potential of housing and regional value in Hokkaido, pursuing a sustainable, long-term approach to real estate. On the program, our CEO commented on the role housing plays amid accelerating social change and on how to protect and grow the inherent appeal of regions.

Real estate is not simply the buying and selling of buildings - it is infrastructure directly connected to daily life, the economy, and the future of communities. We will continue to contribute to Hokkaido's living environment through reliable information and sound proposals grounded in local reality.

In September 2025, Nihon Shintatsu's CEO appeared on TV Asahi's 'Saturday Station' in a feature examining why land prices are surging in Furano, including the role of foreign capital.

As a company with deep knowledge of the Furano market

The feature focused on Furano's nationally watched land price surge and its relationship to foreign investment and tourism demand. Nihon Shintatsu has built its expertise through field research on investment and development, analysis grounded in local characteristics, and forward-looking proposals in Hokkaido's real estate market - particularly Furano - which led to our cooperation with the program.

From the CEO's on-air comments

'In areas surrounded by pastureland where nothing can be built, the protected landscape itself becomes a major source of value.' 'With increasingly severe summer heat across Asia, demand for Hokkaido as a summer retreat will only grow.' The comments addressed the land characteristics and climate factors behind rising prices.

Nihon Shintatsu has officially launched the first project of its hotel business in Otaru in partnership with Germany's TUI Hotels & Resorts, part of one of the world's largest travel groups.

Why TUI chose Otaru for its first hotel in Japan

The TUI Group is a global company operating travel agencies, hotels, and cruises worldwide, with approximately 420 subsidiaries. For its first hotel development in Japan, TUI chose Otaru, Hokkaido - a city rich in history and tourism resources with strong appeal to European visitors.

In June, TUI's Asia development division and Nihon Shintatsu signed a memorandum of understanding aboard a TUI cruise ship berthed at Otaru Port. In July, the partnership advanced further with a formal hotel development agreement signed between TUI Hotels & Resorts CEO Mr. Gerber and Nihon Shintatsu CEO Hideyuki Ishii.

A new TUI-brand hotel within walking distance of Minami-Otaru Station

The development site is located in Sumiyoshi-cho, Otaru, near Minami-Otaru Station, on an approximately 660-square-meter parcel owned by the Company. The hotel is planned at approximately 80 rooms under TUI's popular 'TUI SUNEO' brand - a property for families and younger travelers combining value and design. Opening is targeted within three years, with plans that also encompass local job creation and contribution to urban development.

'From Otaru to the world' - a first step toward new possibilities

TUI's CEO commented that Otaru is an important tourism hub serving as a gateway to Japan and Hokkaido, and that this development marks the first step in TUI's expansion in Japan. CEO Ishii said the partnership with a global hotel brand will help draw out more of Otaru's appeal and deliver accommodation experiences of international standard. With the TUI partnership as an axis, we are considering multiple development plans in Otaru and across Hokkaido, advancing town development that makes the most of tourism resources under our vision: from Hokkaido to the world.