Niseko in Hokkaido Prefecture is experiencing a surge in luxury residential development, driven by robust tourism and increasing international investment, according to a leading industry consultant.
The Niseko Tourism & Property Market Review 2025/2026 says 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.
Bill Barnett, founder and managing director of Thailand-based consultancy C9 Hotelworks, said, “Tourism continues to be the key driver of residential demand. Visitor arrivals reached 3.2 million in FY 2024/25, 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.”
The Review added that 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.”
As a member of the PropertyGuru Asia Property Awards (Greater Niseko) Judging Panel, Barnett says that seasonality remains a defining factor in Niseko’s market, with the Dec–March ski period generating the majority of room revenue and residential rental yields when peak winter rates are 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.”
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.
The Hokkaido Shinkansen, delayed to 2039 due to geological challenges, will connect Tokyo to Niseko in about 4.5 hours to 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 Review 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. Barnett—a globally recognised hospitality, tourism and real estate advisor—is the founder and managing director of Asia-based C9 Hotelworks and member of the PropertyGuru Asia Property Awards (Greater Niseko) Judging Panel. He is also a frequent speaker at industry events and conferences. With more than 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 publicly listed companies. Barnett is considered to be one of the foremost industry experts in the hotel residences sector and is the author of four books on travel, property and hospitality: Slave to the Bean, Collective Swag, It Might Get Weird and Last Call.
