■ A Quiet Town Caught in a Rapid Shift
Furano, a scenic town in Hokkaido famous for its ski slopes and lavender fields, has recently made national headlines in Japan—but not just for its beauty. In 2025, one of its neighborhoods, Kitanomine, recorded the highest residential land price increase in the entire country—over 31% year-on-year, with some properties doubling in value in just a few years.
This rapid shift is being linked to an influx of foreign investment, sparking anxiety among longtime residents who now fear being priced out of their own hometown.
■ From Local Homes to Luxury Assets
Real estate prices in Furano have reached startling new heights:
- An aging 4-bedroom wooden home priced at ¥68 million (~USD 450,000)
- Newly built resort condos priced between ¥100 million to ¥500 million (USD 700K to 3.5M)
- Bidding interest from over 100 foreign investors for a single luxury development
The demographic behind these purchases is overwhelmingly wealthy individuals from countries like Singapore, Australia, and Hong Kong—many of whom see Furano as the next “Niseko”, Japan’s iconic international ski town.
What’s driving this demand?
- Weakened yen makes Japanese property attractive
- Desire for long-term winter stays
- Use as Airbnb-style rentals or vacation homes
- A perception that “under ¥100 million is cheap” by global standards
■ Local Voices: The Emotional Undercurrent
While these investments might seem like good news economically, the emotional response from residents paints a more complicated picture.
“Homes I could have bought 5 years ago are now double the price.”
“I’ve been contacted by real estate agents asking if I’ll sell—again and again.”
“In off-season, the town feels like a ghost town. It’s just empty houses owned by people we never see.”
“We’ve lived here for generations. Now we’re being slowly pushed out.”
In some neighborhoods, residents report that no new Japanese families have moved in—only foreign investors. While the local economy might benefit in tourist season, the sense of community and continuity is fraying.
■ Japan’s Relationship with Place: Cultural Factors at Play
To understand why this matters so deeply in Japan, we need to look at cultural identity and how Japanese people connect with land.
- “Uchi” vs “Soto” (内 vs 外)
These concepts reflect the psychological divide between “insiders” and “outsiders.” The sudden arrival of foreign property owners, who may not integrate into daily community life, intensifies the feeling of loss of place-based belonging. - Inherited land and multi-generational homes
In rural Japan, homes are often passed down for generations. Selling or losing that home isn’t just an economic decision—it’s a break in family continuity. - Harmony over confrontation
Japanese residents may not openly oppose foreign buyers, but that doesn’t mean they’re comfortable. There’s often silent resentment, or a sense that “it’s inappropriate to speak out.”
These dynamics create a quiet but powerful emotional resistance to the ongoing changes.
■ Is It All Because of Foreign Buyers?
Not entirely.
Foreign capital plays a major role, but it operates within a system that enables and welcomes such investment:
- Tourism policies encourage regional development
- Local governments often promote real estate to outsiders
- Real estate developers profit from high-end market shifts
So while foreigners are the visible face of change, the mechanisms behind it are deeply tied to domestic economic strategies.
■ Can Communities Push Back?
Yes—and some are trying.
Across Japan, several towns have begun introducing local-first property policies, or limits on short-term rentals. Others are experimenting with:
- Preservation zones to protect traditional neighborhoods
- Community-based land use discussions
- Tax incentives for permanent residents or younger buyers
So far, Furano lacks such protective measures—but growing media attention may open the door for policy debates in the near future.
■ Conclusion: Identity vs Investment
Furano’s land price surge is a flashpoint in a larger national question:
How can Japan attract international capital without displacing local life?
This is not just about money.
It’s about place, belonging, and the invisible fabric of daily life.
To outsiders, a house may be a smart investment.
To locals, it’s where grandparents raised their children, and where grandchildren were meant to grow up.
As Japan becomes increasingly globalized, finding a balance between welcoming the world and protecting the home will only become more urgent.
