Japan’s Alpine Real Estate Capital Niseko Tops Land Appreciation Table

In a broader sense, the highly tourist-reliant alpine resort area of Niseko has remained attractive to real-estate developers and international hotel operators during the pandemic. Overseas investment sentiment has been positive, highlighted by projects such as Six Senses/Wealth Management Group (100 keys), Moxy/YTL Corporation Berhad (310 keys), and Capella/Shenning Investments (219 keys).

According to C9 Hotelworks new Niseko Property Market Update 2021, two new developments, namely New World La Plume Niseko Resort and Matie Niseko recently launched in the 2021 summer season. Hence, the 2021 Niseko property market has hit a high in new project/off-plan transactions of USD2.69 billion.

Although the current worldwide economic remains uncertain, domestic and foreign developers in Niseko are receiving strong demand for land acquisitions of residential plots.

A number of projects are reporting inspection cancellations from offshore buyers, however, there are luxury real estate sales that are completing. Speaking to the Niseko Real Estate market trend, residential development plots are the hot ticket this year. A strong demonstrated trend of appreciation and favorable long-term outlook is fueling investment demand.

One fallout from the pandemic has been commercial and retail rental rates have retreated, due to a lower number of tourists. However, based on the Ministry of Land, Infrastructure, Transport, and Tourism in 2021, the average land appraisal in Kutchan has continued to rise by 25% y-o-y, making it the highest growth rate in Japan

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