Niseko Wakes Up, Nixes Foreign Housing Project on Safety Concerns

Hokkaido's Niseko region is renowned as one of the world's top ski resorts. In Kutchan Town, one of Niseko's neighborhoods, a proposal to build apartment complexes primarily for foreign workers was brought forward. The town's agricultural committee, however, unanimously rejected the plan, citing concerns over public safety. Such denials are rare for development projects.

Still, Niseko's population swells dramatically in winter, and the housing shortage is already severe. As a result, the fate of future development in the area is being closely watched.

Residents Call for Caution

The proposal called for building 32-33-story apartment blocks on roughly 2.7 hectares (6.7 acres) of farmland, about 700 meters southeast of JR Kutchan Station. This housing was intended for foreign resort workers, with about 1,200 residents expected. That is equivalent to nearly 10% of the town's population. Designated asType 3 agricultural land (located in urban or rapidly urbanizing areas, generally permissible for non-agricultural conversion), the site required a conversion application, which the developer submitted to the town's agricultural committee in July 2025.

According to the town, the project met all the technical conditions for farmland conversion, including feasibility and minimal impact on surrounding farmland. Even so, nearby residents submitted a petition with 262 signatures and a written request citing concerns over public safety. The written request stated, "For the sake of residents' well-being, we ask that you avoid rushing into development and instead make a careful decision that values consensus."

At its regular meeting on July 31, the committee reviewed the plan and took residents' concerns into account. It then voted to submit a recommendation opposing the farmland conversion to the Hokkaido governor, who holds final authority over the decision. Sources say a decision on whether to approve or reject the project is expected sometime after October 2025.

Nisade Services, a Kutchan-based real estate firm owned by a Singaporean investment company, was behind the project. The housing was intended primarily for foreign workers employed at ski resorts and related lodgings about five kilometers away. In addition, the project envisioned including restaurants and bars.

Housing Needs Demand Realism

When asked about the project, Kunihiro Kondo, a senior project manager at the company, said he was taken aback. "This was completely unexpected." He noted that resident briefing sessions had been held in December 2024 and again in May 2025 to explain the project. However, while "there were certainly voices expressing concern about public safety, I never imagined the committee would reject it unanimously," he said.

*Niseko at night with lights of the Hirafu ski area in the background. (©Agnes Tandler)*

Initially, the project had been slated to break ground in September 2025. In fact, contracts were already signed with construction firms. But without approval, it now risks being scrapped entirely. Kondo stressed the urgency of the issue, explaining that, "In the winter high season, securing housing for resort workers is the biggest challenge. With the shortage already overwhelming, how will this be resolved? I hope people can look at the reality calmly, not just emotionally."

Kutchan Town, with a population of about 17,000, now has nearly 20% foreign residents. Over the past year, the foreign population grew by 833, the largest increase of any town or village in Japan.

At the same time, land prices have soared, and rents have followed suit. Rents for some 2LDK apartments have reached ¥250,000 JPY ($1,700 USD) a month, on par with Tokyo. Yet demand remains so high that, as Kondo put it, "whenever a vacancy opens up, it's filled immediately."