Luxury residential growth accelerates in Niseko as tourism fuels demand

Domestic and international demand prop up opulent homes across the increasingly connected Japanese resort hub

The Niseko region of Hokkaido is experiencing a surge in luxury residential development, driven by robust tourism and increasing international investment.

According to the newly released C9 Hotelworks – Niseko Tourism & Property Market Review 2025/2026, the entry of global brands and long-term capital is reshaping the region’s property landscape, with emerging submarkets such as Hanazono and Niseko Village leading the expansion.

Tourism continues to be the key driver of residential demand. Visitor arrivals reached 3.2 million in FY2024/25, supported by expanding air connectivity through New Chitose Airport, now serving 44 airlines to 20 destinations. Infrastructure investments, including the airport’s business jet terminal and the planned Hokkaido Shinkansen extension, are enhancing accessibility and attracting international buyers seeking both lifestyle and investment opportunities.

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Residential supply in Hanazono and Niseko Village has grown significantly over the past five years, reflecting the strong appeal of these submarkets. Hanazono, in particular, has seen its share of Niseko’s residential inventory rise from 22% in 2020 to 31% in 2025. Developers are responding to both domestic and international demand, delivering high-end condominiums and villas that combine ski-in/ski-out convenience with premium amenities and long-term investment potential.

Seasonality remains a defining factor in Niseko’s market. The December–March ski period generates the majority of room revenue and residential rental yields, with peak winter rates two to five times higher than off-season months. This reliance on snow tourism continues to influence development strategies in both established and emerging submarkets.

At the same time, initiatives are underway to broaden Niseko’s appeal beyond winter. Government and private sector investments in wellness facilities, cycling infrastructure, and nature-based experiences aim to attract summer visitors, extending the destination’s operational calendar. The August 2025 spike in visitors, driven by Japan’s Obon holidays, demonstrates the potential for non-ski tourism to support residential rental performance year-round.

Looking ahead, the Hokkaido Shinkansen, though delayed to 2039 due to geological challenges, will connect Tokyo to Niseko in about 4.5 hours. Once completed, it will offer a faster alternative to domestic flights and buses, further enhancing the region’s attractiveness for investors and second-home buyers.

Luxury real estate in Niseko is increasingly defined by lifestyle, accessibility, and tourism potential. From high-end condominiums in Hanazono to villa developments in Niseko Village, buyers are seeking properties that deliver both investment returns and premium living experiences. With international capital inflows and a resilient tourism sector, these submarkets are set to play a central role in Niseko’s ongoing residential growth.

The C9 Hotelworks – Niseko Tourism & Property Market Review 2025/2026 provides a detailed analysis of these trends, highlighting how tourism continues to underpin demand for luxury residential properties in the region. For developers and investors, Niseko offers a compelling combination of seasonal tourism appeal, infrastructure improvements, and premium residential opportunities.

About Bill Barnett

Bill Barnett — a globally recognised hospitality, tourism, and real estate advisor — is the founder and managing director of Asia-based C9 Hotelworks and esteemed member of the PropertyGuru Asia Property Awards (Greater Niseko) Judging Panel.

In addition to being a leading consultant, he is a frequent speaker at industry events and conferences.  With over 30 years’ experience in the Asia Pacific region, he has an extensive background in hotel operations, development, and asset management. His past employment highlights include Senior Corporate roles at international hotel chains and publically listed companies. Bill is considered to be one of the foremost industry experts in the hotel residences sector.  To date, Bill is the author of four books on travel, property, and hospitality under the titles of Slave to the Bean, Collective Swag, It Might Get Weird and Last Call.