Karuizawa has attracted attention not only as a summer resort and tourist destination, but also in recent years as a relocation destination. This article takes a deep dive into Karuizawa's history, the appeal of relocating there, and its workcation environment, with insights from a real estate investment perspective as well.
What Kind of History Does Karuizawa Have as a Summer Resort?
Here we introduce the historical background of how Karuizawa came to be known as a summer resort.
The Birth of a Summer Resort
It all began in 1886 when Canadian missionary Alexander Croft Shaw was moved by the beautiful nature and climate of Karuizawa, and in 1888 built a villa on Otsukayama in old Karuizawa. In 1893, the first villa owned by a Japanese person was also built. The area developed remarkably alongside the opening of the Usui New Railway.
The Path of Karuizawa's Development
From around 1897, rental villas and hotels began to increase, and during the Taisho era, large-scale capital land subdivisions also began. As the number of Japanese summer visitors grew, the old Karuizawa shopping street became so lively it was called "Karuizawa Ginza," and sports facilities for tennis, golf, horseback riding, and more became well-established.
Postwar Recovery and Internationalization
After the war, its character as an international summer resort was further strengthened by its use as a rest area for the Allied occupation forces. It served as an equestrian venue for the 1964 Tokyo Olympics, and the opening of the Hokuriku Shinkansen in 1997—which cut travel time from Tokyo to approximately one hour—became a major turning point in its development.
What Makes Karuizawa So Appealing?
Karuizawa offers many attractions not only as a summer resort, but also as a place to live.
Rich Natural Environment
You can enjoy sweeping views of Mt. Asama and the beautiful nature of all four seasons. The average summer temperature is around 20.5°C, allowing for a comfortable summer without air conditioning.
Abundant Commercial Facilities
In addition to Karuizawa Prince Shopping Plaza, the old Karuizawa Ginza street is lined with distinctive shops and restaurants. Everyday shopping is no inconvenience.
Easy Access from Tokyo
Approximately 1 hour and 10 minutes from Tokyo Station by Hokuriku Shinkansen. The good access to the city center makes balancing remote work with commuting straightforward.
Educational and Cultural Environment
With international schools and private schools available, it is an attractive environment for families with children as well. Art museums and concert halls are also well-equipped.
Why Are More People Moving to Karuizawa?
Relocation to Karuizawa has been accelerating in recent years. Here we analyze the background.
The Spread of Remote Work
Since the COVID-19 pandemic, the establishment of remote work has reduced the necessity of living in the city center. Karuizawa is within commuting distance of Tokyo by Shinkansen, making it an ideal location for hybrid work combining commuting and remote work.
Balancing Nature and Urban Amenities
Surrounded by rich nature while still having commercial facilities and medical institutions in place, it is a rare area where you can balance everyday convenience with a natural environment.
Rising Real Estate Prices
With increasing relocation demand, real estate prices in Karuizawa are on an upward trend. It is an area drawing growing attention as an investment target as well.
What Is the Workcation Environment in Karuizawa Like?
Karuizawa is also highly regarded as a workcation destination.
Well-Equipped Coworking Spaces
There are multiple coworking spaces around Karuizawa Station and in the Naka-Karuizawa area, with high-speed internet environments in place.
Corporate Training and Retreat Use
As a place that enables creative discussions in nature, use for corporate training programs and retreats is also increasing. A movement to utilize hotels and rental villas as workcation facilities is also spreading.
Municipal Support Measures
Karuizawa Town is implementing support measures to promote relocation and workcation. Development of remote work environments and the establishment of relocation consultation desks are progressing.
What Are the Characteristics of Karuizawa's Real Estate Market?
Characteristics by Area
| Area | Features | Price Range |
|---|---|---|
| Old Karuizawa | Historic high-end villa district. Highest brand value | High price range |
| New Karuizawa | Close to the station with high convenience. Well-equipped with commercial facilities | Mid–high price range |
| Naka-Karuizawa | Rich in nature and popular with permanent residents. Close to the Hoshino area | Mid price range |
| Minami-Karuizawa | Quiet environment. Easy to secure large plots of land | Mid–low price range |
| Oiwake / Nishi-Karuizawa | Relatively affordable price range. Future development expected | Low–mid price range |
Points to Note When Purchasing
Karuizawa has strict building regulations for natural environment conservation, including restrictions on building-to-land ratio, floor area ratio, required green coverage, and building height limits. Be sure to check the municipal ordinances before purchasing.
Frequently Asked Questions (FAQ)
Is it possible to live in Karuizawa year-round?
Yes, it is. Winter minimum temperatures can drop to around minus 10°C, but in recent years heating equipment has become well-developed and the number of year-round residents is increasing. Snow removal systems are also in place.
Can a Karuizawa villa be used as an investment property?
There are options to use it as a rental villa or vacation rental. Demand is particularly high during the summer high season, making it possible to generate income.
How much does a dual-base lifestyle between Tokyo and Karuizawa cost?
A Shinkansen commuter pass (Tokyo–Karuizawa) costs approximately ¥100,000 per month. If remote work is the focus, costs can be kept to around ¥20,000–¥40,000 per month using coupon tickets.
Will Karuizawa real estate prices continue to rise in the future?
Given the spread of remote work and the trend of relocation from urban areas, prices are expected to continue rising over the medium to long term, though there will be differences depending on the area and property type.
