Tax institutions indicate that the land values of Hakuba and Kikuyo have the greatest increase; the average land price in Japan has risen by 2.3%, reaching the highest growth rate in history. On Monday, National Tax Agency of Japan released data showing that Hakuba, a scenic spot known for skiing and hiking in the picturesque Japanese Alps, had the largest increase in evaluation land value, rising as much as 32.1% over the past year. Kikuyo, an agricultural town in Kumamoto Prefecture, ranked second with a land price increase of up to 24%, primarily due to the large-scale semiconductor manufacturing factory built by Taiwan Semiconductor (TSM.US) in the area, which brought about a significant increase in employment and economic expansion through supporting construction.
According to Futubull Finance APP, Japan's land prices have reached a record-breaking increase, benefiting from the country's booming tourism industry and the full transfer of global semiconductor supply chains to the region. National Tax Agency of Japan released data on Monday showing that Hakuba, a scenic spot in the picturesque Japanese Alps known for skiing and hiking, had the largest increase in evaluation land value, rising as much as 32.1% over the past year. Kikuyo, an agricultural town in Kumamoto Prefecture, ranked second with a land price increase of up to 24%, primarily due to the large-scale semiconductor manufacturing factory built by Taiwan Semiconductor (TSM.US) in the area, which brought about a significant increase in employment and economic expansion through supporting construction.
Please use your Futubull account to access the feature.
Japan has shaken off decades of deflation and is experiencing a return of inflation rates and the influx of foreign investment into the Japanese market, along with an influx of international tourists, all of which have pushed forward the recovery trend of Japan's real estate market. According to statistics from Japan's Ministry of Land, Infrastructure, Transport and Tourism, rural land prices rose for the first time in 30 years last year due to the inflow of foreign investors.
The National Tax Agency calculates inheritance and gift taxes by analyzing recent sale prices and other data. These values are annual data as of January 1 of this year and are compared annually with the same period in 2023.
The popularity of Japan's powder snow has attracted global investors and international tourists to its ski resorts, significantly pushing up overall land prices in northern island Hokkaido and other regions like Niseko.
Japan's subsidies for the development of the domestic semiconductor manufacturing industry, as well as the promotion of the global semiconductor supply chain to move to Japan under the push of the United States, have helped to attract top-level semiconductor manufacturers such as Taiwan Semiconductor (TSM.US), Micron Technology (MU.US) and Samsung Electronics to Kumamoto, Japan. It is reported that Taiwan Semiconductor, the largest contract chipmaker in the world, plans to build a second large-scale chip manufacturing plant near the existing chip manufacturing plant, which is scheduled to start operation at the end of 2027.
The Japanese government will provide up to 732 billion yen (approximately $6.86 billion) in subsidies for the second TSMC plant in Kumamoto, which is planned to start construction at the end of 2024 and will focus on high-end processes such as 5nm. The existing TSMC factory in Kumamoto has received subsidies of approximately 476 billion yen.
In less than three years, the government led by Japanese Prime Minister Fumio Kishida has invested as much as 4 trillion yen (approximately $36.4 billion) in aggressively developing the domestic semiconductor manufacturing industry. It also aims to help the Japanese economy return to a positive growth cycle sought by the government and the Bank of Japan, and the US government is also constantly promoting the global transfer of the semiconductor supply chain to Japan.
For heavy investment projects in the domestic semiconductor manufacturing sector in Japan, the Japanese government quickly issues construction cost subsidies of up to 50%. This high-efficiency subsidy ratio attracts industry leaders such as Taiwan Semiconductor, Micron Technology and Samsung Electronics to build factories in Japan. Japan is also a global leader in semiconductor equipment and high-end raw materials, with giants such as Tokyo Electron, Tokyo Ohka Kogyo and Shin-Etsu Chemical. Under the support of Japan's complete supply chain, international chip manufacturing giants are more willing to build factories in Japan.
There is evidence in both Japan's northern Hokkaido and southern Kumamoto that newly built semiconductor manufacturing plants are starting to affect the local economy and personnel flow, preventing people from moving to metropolitan areas like Tokyo in search of better job and education opportunities. Fumio Kishida also plans to raise the financial support for the semiconductor industry to 10 trillion yen (approximately $90.9 billion) with the support of the private sector in Japan.