Why Niseko is Japan’s Prime Real Estate Investment Destination

Japan is steadily progressing as a top tourist destination.

Among its many attractions, Niseko in Hokkaido stands out, drawing numerous international tourists.

Given the demand from both domestic and international markets, real estate investment in Niseko is highly recommended.

Japan’s Blossoming Tourism Market

While Japan is renowned for its automobile industry, tourism is fast becoming a pivotal sector supporting the nation.

Let’s delve into the current state of Japan’s tourism market.

Japan’s Journey to Becoming a Tourist Hub

Japan, with its rapid economic growth, has become one of the world’s leading economies.

Recently, there’s been a significant push towards bolstering the tourism industry.

In fact, with initiatives like visa relaxations and tax-free shopping expansions, the government’s commitment to boosting tourism is evident.

These efforts have borne fruit, with a steady increase in the number of tourists visiting Japan.

From 3,839,661 tourists in 2003, the numbers surged to 10,880,604 by 2014.

By 2016, this number doubled to 21,049,676, and just before the pandemic in 2019, it reached a staggering 28,257,141.

Furthermore, the percentage of tourists among all foreign visitors to Japan has risen from 62% in 2003 to 88% in 2019, indicating Japan’s growing appeal as a travel destination.

China Tops the List of Visitors to Japan

Source: Japan National Tourism Organization (JNTO)

Japan attracts tourists from various countries, but the number of visitors from China is unparalleled.

In 2019, while China’s international travel income stood at 358 billion dollars, its expenditure was a whopping 2546 billion dollars.

This indicates their significant spending power when traveling.

In fact, while the average expenditure per foreign tourist in Japan was 158,531 yen in 2019, Chinese tourists spent an average of 212,810 yen.

Moreover, 90% of Chinese visitors come to Japan for tourism, underscoring the high demand for Japanese tourism in China.

With such high spending Chinese tourists flocking to Japan, it’s an ideal location to start a tourism business.

Hokkaido: The Spotlight of Japan’s Tourism

Hokkaido, with its pristine snowscapes and fresh seafood, is one of Japan’s premier tourist destinations.

Now, the significant development is set to boost Hokkaido’s appeal even further.

Extension of the Hokkaido Shinkansen

Following the 2010 launch of the Tohoku Shinkansen to Shin-Aomori, the Hokkaido Shinkansen was extended in 2016.

By 2030, it’s set to connect Shin-Hakodate-Hokuto to Sapporo.

This will reduce the Tokyo-Sapporo travel time to approximately 4.5 hours.

With improved accessibility, more tourists are expected to visit Hokkaido.

Three Reasons Why Niseko is the Best Real Estate Investment in Japan

Hokkaido, with its untapped potential, has areas that have already garnered international acclaim.

The “Niseko Area,” encompassing Niseko Town and Kutchan Town, is a prime example.

Though it’s a 2-hour drive from Sapporo, Hokkaido’s largest city, and has a small population (about 5,000 in Niseko Town and 15,000 in Kutchan Town), it’s a hotspot for global investors.

The Niseko area is undergoing continuous development.

Here are the reasons why Niseko’s real estate market is so attractive:

1. World-renowned Powder Snow

The unique quality of snow in Niseko has captivated skiers worldwide.

During winter, tourists from countries like China and Australia flock to Niseko, transforming it into a cosmopolitan hub.

The ski resorts, primarily developed by foreign real estate investors, host globally recognized hotels.

The demand for Niseko, especially from overseas, is unparalleled in Hokkaido.

2. Abundant Summer Opportunities

Niseko, eyed by global corporations and investors, is still under development.

However, the heavy snowfall in winter restricts construction activities, leading to a concentration of construction work in summer.

This brings in a large number of construction workers to Niseko during the summer months.

Surrounded by mountains like Mount Yotei and Mount Annupuri and the famous Shiribetsu River, Niseko offers a plethora of summer activities like rafting and zip-lining.

The number of tourists in summer rivals that of winter.

The consistent demand across seasons makes Niseko an attractive real estate investment destination.

3. Development of the Niseko Area with the Extension of the Hokkaido Shinkansen

The Hokkaido Shinkansen, set to operate between Shin-Hakodate-Hokuto and Sapporo by 2030, will include a new station at Kutchan.

Given the existing demand in the Niseko area, a significant number of tourists are expected to use the Kutchan station.

An increase in tourists will naturally boost the demand for accommodations in Niseko and Kutchan.

The Niseko area, with its clear growth trajectory, is an unparalleled real estate investment destination in Japan.

Invest in Niseko: Japan’s Premier Real Estate Destination

As highlighted, Niseko stands out as a prime real estate investment location in Japan.

Its international acclaim due to high-quality snow, consistent demand throughout the year, and the anticipated influx of tourists with the Shinkansen extension make it an unmatched investment opportunity.

However, the reality is that the land prices around the Niseko Annupuri ski resort have skyrocketed since the late 2000s, reminiscent of the bubble economy era.

It’s challenging for individual investors to venture into the foothill areas of Niseko Annupuri, where properties worth billions of yen are not

If you’re considering real estate investment in Niseko Kutchan, please contact us!

Note: All data sourced from the Japan National Tourism Organization (JNTO).