Inbound Demand and the Popularity of Hot Spring Resorts “Atami” and “Hakone”
Atami
Atami, a well-known tourist destination, is located in the eastern part of Shizuoka Prefecture and is a seaside resort town that can be accessed from Tokyo in just 45 minutes. Famous for its hot springs and stunning scenery, it has been loved as a hot spring resort for many years, with numerous relaxing hot spring facilities scattered throughout the area. The region is also known for its abundance of fresh seafood, offering dishes made with the day’s catch. The beautiful seasonal landscapes, surrounded by both sea and mountains, make Atami a highly attractive destination for tourists, including many international visitors.
Hakone
Hakone, situated in the western part of Kanagawa Prefecture, is a popular mountain resort about an hour and a half from Tokyo. It is renowned for its hot springs and natural beauty. The area boasts numerous hot spring inns, where visitors can relax in traditional Japanese baths while enjoying views of Lake Ashi or Mt. Fuji. With its hiking trails offering seasonal landscapes and a variety of museums and galleries that provide rich cultural experiences, Hakone is a favorite spot for both nature and art lovers. Its fusion of hot springs, nature, and culture makes it particularly popular among international tourists seeking to experience the traditions of Japan.
Since the collapse of Japan’s economic bubble in 1991, both areas saw a temporary decline in popularity, but in recent years, they have rebounded and are once again bustling with activity. This article explores the appeal of investing in real estate in Atami and Hakone and provides insights into key considerations. The content will help you understand the potential of the real estate market in these areas, so be sure to check it out.
The Reasons Behind the Revival of Atami and Hakone’s Popularity
During Japan’s rapid economic growth, Atami attracted over 5 million visitors annually. However, after the economic bubble burst, many corporate retreats were closed, and corporate trips gradually declined, leading to a drop in visitors to 2.5 million by 2011. That same year, Atami City launched a city promotion campaign, focusing on attracting women and younger tourists. This strategy led to a remarkable recovery in visitor numbers, which continue to rise.
Similarly, Hakone saw a significant drop in visitors after the economic downturn caused by the bursting of the bubble. In 2003, Seibu Group and Odakyu Group joined forces to revitalize tourism in the Hakone area, successfully halting the decline in visitors. In recent years, the increase in foreign tourists has led to what is now referred to as the “Hakone Boom.” Both Atami and Hakone overcame their popularity declines thanks to the inherent charm of each area. Let’s take a closer look at what makes each area so special.
1. High-Quality Hot Springs
Both Atami and Hakone are top-ranked hot spring resorts in various travel media in Japan, known for their rich spring water and excellent water quality.
2. Convenient Access from Tokyo
Both Atami and Hakone can be reached from central Tokyo in under two hours, making them ideal for short trips or day trips. For foreign visitors who want to explore Japan efficiently, these destinations have become increasingly popular as easily accessible tourist spots near the capital.
3. Stunning Scenery
Atami is known for its breathtaking ocean views. Many resort condominiums and hotels offer spectacular ocean vistas.
Meanwhile, Hakone is famous for its stunning views of Mt. Fuji. Visitors can take in the sights from various spots such as the Hakone Ropeway, Lake Ashi, Owakudani, and Taikanzan. The abundance of scenic spots is one of the reasons for the continued popularity of both destinations.
4. Increase in Foreign Tourists
Both Atami and Hakone are located near Mt. Fuji and offer a wealth of activities including hot springs, scenic views, and various attractions, making them increasingly popular among foreign tourists seeking a taste of traditional Japan.
For many Western tourists, hot springs are an entirely new cultural experience. For those uncomfortable with communal baths, accommodations with private open-air baths are especially popular. Recently, there has been a growing interest in “scenic baths” with views or “snow-viewing baths,” and many tourists have reported that the experience exceeded their expectations.
Exploring Atami and Hakone's Attractions
1. Atami
1-1. Hot Springs
Atami Onsen is one of Japan’s top hot spring areas, with a history stretching back 1,500 years and a total output of 19,000 liters per minute (as of 2024). It boasts over 500 springs, most of which are chloride springs, known for their therapeutic effects on nerve pain, muscle pain, and joint pain.
1-2. Scenic Views
Atami offers a variety of scenic spots. Below are just a few recommendations:
1-3. Culture & Art
Atami is also home to numerous cultural and artistic attractions.
1-4. Power Spots
Atami has several well-known spiritual sites, including:
2. Hakone
2-1. Hot Springs
Hakone Onsen, discovered around 738 AD, is a historic hot spring resort. Its variety of about 20 different spring types has earned it the nickname "Department Store of Hot Springs."
2-2. Scenic Views
Hakone offers too many scenic spots to list them all, but here are a few highlights:
2-3. Culture & Art
Hakone is home to several cultural and artistic attractions:
2-4. Power Spots
Hakone also has several famous spiritual sites:
Current State of Real Estate Investment in Atami and Hakone
Atami and Hakone, two of Japan’s most famous hot spring resorts, have become increasingly attractive for real estate investment in recent years. Both areas have seen significant land price increases, with foreign investments on the rise as well. As of July 1, 2024, the commercial land value in Atami has risen by 9.2%, according to the Shizuoka Prefecture Land Price Index released on September 17, 2024.
The area around Atami Station has seen a resurgence in tourism following the COVID-19 pandemic, driving up demand for real estate and continuing to push land prices higher. In the bustling shopping street near Atami Station, any available properties are quickly snapped up, making it a hotspot for real estate investment.
Meanwhile, the average residential land price in Hakone has risen by 1.5%, according to a report by Japan’s Ministry of Land, Infrastructure, Transport, and Tourism, after being flat the previous year. Notably, Hakone’s land prices are forecasted to rise by 56.3% over the next decade, making it a promising area for future growth, especially compared to nearby regions where prices have declined by 0.3%.
Both Atami and Hakone have seen an increase in foreign companies acquiring accommodation facilities, reflecting the growing demand for resort properties in Japan. In Atami in particular, the price of resort condominiums has surged significantly.
With easy access from Tokyo and rich natural environments, Atami and Hakone are highly attractive resort areas. Combined with the current upward trend in land prices and promising growth forecasts, both areas represent strong potential for long-term real estate investment.
Oct 5, 2024