Discover Niseko: The Heart of Hokkaido’s Real Estate Goldmine
2023.10.14
Located in Hokkaido, Niseko has emerged as a globally renowned tourist destination representing Japan.
With an impressive 6.53 million foreign overnight stays, it’s no wonder that high-end international hotel brands are making their mark here.
In this article, we’ll delve deep into the allure that captivates foreign tourists in Niseko throughout the seasons.
Moreover, we’ll share insights on how to leverage Niseko’s inbound demand for a successful property investment.
While many associate Niseko and Kutchan with skiing, it might surprise many to know the potential they hold beyond the slopes.
Especially for individual investors or those considering diving into the investment world, vacation rental investments in the Kutchan urban area come highly recommended.
Niseko, Hokkaido: The Investment Goldmine Foreign Investors Can’t Ignore
Niseko, home to the Hilton Niseko Village and Ritz-Carlton Reserve, is a beacon for high-end international hotels.
With a staggering 6.53 million foreign overnight stays (as of 2017), it stands as Japan’s premier global resort.
There are three primary reasons why Niseko is a magnet for foreign tourists:
Reference: NISEKO, My Extreme – Niseko Tourism Area Development Plan – 2019 – 2023
①Year-Round Attractions: From Lush Summers to Snowy Winters
Niseko’s allure is undeniably tied to winter sports.
Its world-renowned “powder snow” and majestic mountain vistas draw countless international visitors annually.
With diverse ski courses catering to all levels and the presence of four major ski resorts, including the famed “Niseko Annupuri International Ski Area,” visitors are guaranteed a fresh experience every time.
The snowy landscapes of the ski resort
But Niseko isn’t just a winter wonderland.
Come summer, the region transforms, offering hiking, cycling, and fishing amidst its rich natural beauty.
The family-friendly Niseko Annupuri hike offers breathtaking views, while golf courses and rafting trips ensure there’s never a dull moment.
The summer view from Mount Niseko Annupuri
②A Global Village: Multilingual Services for a Seamless Experience
In Niseko, one might mistake English for the official language given its widespread use.
Leading hotels like the Hilton Niseko Village prioritize English, ensuring foreign tourists feel right at home.
This English-centric approach is evident in restaurants and other establishments too.
Furthermore, the number of guests from Hong Kong, totaling 60,000, and Singapore, with 30,000 visitors, has increased, leading to a growing presence of travelers from non-English-speaking regions.
As a result, many facilities and shops that accommodate multiple languages have become more prevalent.
③Targeting the Affluent: A Strategy That Paid Off
Niseko’s strategy of targeting “foreign affluent tourists” has been a resounding success.
For the global elite, Niseko is the go-to destination for winter vacations and extended stays.
The region has responded by developing sophisticated resorts that cater to the high standards of these affluent tourists.
Luxury condominiums, offering a “home away from home” experience, are a prime example.
“The Vale Niseko” stands out, having clinched the “World Ski Award” for boutique hotels with fewer than 50 rooms, a rare accolade for Japanese establishments.
Luxury Condominium Image”
Niseko Property Investment: The Untapped Potential
Niseko’s property investment landscape is rebounding, especially in luxury condominiums and high-end apartments.
This resurgence is due to the post-pandemic return of inbound tourism.
Furthermore, foreign capital continues to pour into Niseko.
New openings like the Singapore-backed “Yuki Niseko” hotel, “Park Hyatt Niseko HANAZONO”, and the “Ritz-Carlton” are testaments to this ongoing foreign investment fervor.
Most investments are driven by Asian capitals, notably from Hong Kong and Singapore.
The primary strategy is to sell properties, capitalizing on the appreciation in value.
Land prices in Niseko are also witnessing a significant surge.
For six consecutive years, Niseko has maintained the top spot in land price appreciation, with a notable 50.0% increase in the central “Hirafu Slope”.
However, for individual investors, initiating an investment near Niseko’s ski resorts can be challenging.
The reasons are:
⑴Most lands near the ski resorts have already been acquired by foreign capital.
⑵Due to fierce competition from foreign investors, property prices near the ski resorts are as high as those in Tokyo’s Minato Ward.
⑶The high initial investment often means a longer time to recoup profits.
For individual investors, vacation rental investments in Kutchan town are highly recommended.
Choose Vacation Rental Investment in Niseko!
For those looking to start investing in Niseko, vacation rentals in Kutchan town are the way to go.
Three main reasons support this:
①Affordable Land with High Appreciation Potential
Compared to areas like Hirafu Slope, Kutchan offers significantly lower land prices.
Some spots in Kutchan are priced at nearly one-fifth of those near ski resorts.
This affordability means lower initial investments and the potential for substantial profits even without building high-end properties.
Moreover,the rise in land prices is truly remarkable
According to the Ministry of Land, Infrastructure, Transport, and Tourism, Kutchan’s residential land prices have increased by 25% year-on-year, topping the national list for three consecutive years.
②Excellent Accessibility
Kutchan is conveniently located, allowing for quick bus rides from Kutchan Station to the ski resorts.
Moreover, you can reach Kutchan Station from Sapporo in just 2 hours, making it easily accessible from major cities in Hokkaido.
Additionally, being in the city center, securing daily necessities like groceries from supermarkets is a breeze.
Moreover, the upcoming Hokkaido Shinkansen in 2030 will further boost its accessibility, making it even more attractive for tourists.
③High Demand for Vacation Rentals
Several factors contribute to the high demand for vacation rentals in Kutchan:
⑴There’s a shortage of accommodation facilities.
⑵The upcoming Hokkaido Shinkansen in 2030 is expected to further boost tourism.
⑶Vacation rentals cater to both domestic tourists and foreign visitors, as well as construction workers.
⑴Shortage of Accommodation
Kutchan, due to its proximity to tourist attractions and ongoing development projects, has an incredibly high demand for lodgings.
In fact, with business hotel occupancy rates exceeding 80% for over 10 months (as of 2012)¹, it’s evident there’s a shortage of accommodation facilities.
⑵Anticipated Growth in Tourism
With the subsiding effects of the pandemic and the expected introduction of the Hokkaido bullet train to Kutchan by 2030, tourism is set to skyrocket.
This new train link means tourists can reach Kutchan from Sapporo in just 25 minutes and Otaru in 15 minutes, making visits to Niseko and Kutchan remarkably easier.
⑶High Demand for Vacation Rentals from Various Groups
Vacation rentals appeal to a broad audience: domestic tourists, foreign tourists, and development project workers.
Primarily, with most vacation rentals priced around 10,000 yen per night, they’re often more affordable than hotels, drawing in domestic tourists.
Furthermore, vacation rentals are suited for long-term stays, appealing to foreign visitors² and development workers.
With amenities like kitchens and living areas, they offer a homely experience.
Especially among foreign tourists, the sentiment is: “Eating out every meal for two weeks is exhausting. Vacation rentals feel just like home” and “You can experience a different culture while living normally”³.
¹Accommodation Capacity Survey
²Kutchan Town Tourist Arrival Status
Unlocking Niseko’s Investment Potential: The Vacation Rental Goldmine
Niseko, with its pristine summer outdoors and world-class winter powder snow, has become a top tourist destination for foreign visitors.
With the pandemic subsiding and the upcoming Shinkansen extension to Niseko, even greater tourism demand is anticipated.
To capitalize on this surge, we highly recommend vacation rental investments in Kutchan town!
With its affordable land prices and high appreciation rates, Kutchan promises high profitability. Its proximity to tourist spots and significant accommodation demand from visitors further accentuates its allure for property investment.
If Niseko has piqued your investment interest, don’t miss our insights on investing in “Furano”, another iconic Hokkaido tourist spot. Dive in to explore more!
If you’re interested in vacation rental management or seeking consultation on vacation rental investment, please don’t hesitate to contact us!
