Hokkaido is one of Japan’s premier resort destinations, known for its vast natural landscapes, stunning scenery through all four seasons, and rich food culture featuring fresh seafood and produce. Just a 90-minute flight from Tokyo, the region offers excellent accessibility. In summer, visitors are drawn to its cool highlands and expansive flower fields, while in winter, world-renowned powder snow makes its ski resorts especially popular. In recent years, with the rapid growth of inbound tourism and the impact of a weaker yen, Hokkaido has also gained attention from wealthy global investors as a promising destination for real estate investment.
Backed by its vast natural landscapes and unique cultural assets, Hokkaido has established itself as a prominent international tourist destination.
The tourism and hospitality sector in Hokkaido is experiencing an impressive resurgence driven by a strong rebound in inbound demand. After a pandemic-induced slump that saw international visitors drop by nearly 97% in 2021, Hokkaido has rapidly recovered to welcome 7.62 million foreign visitors from January to October 2024 alone. This marks a significant rebound compared to the 6.1 million visitors recorded in 2023 and approaches the pre-pandemic peak of 7.9 million in 2019. (1).
In response to this growing demand, investment in hotel development sites, vacation rental properties, and resort condominiums has been expanding, along with an increase in transactions involving hospitality-related real estate. The shift toward a year-round tourism market—no longer limited to just the summer and winter seasons—also indicates the underlying strength and stability of the region’s real estate market.
In Sapporo, residential land prices rose by 8.4% and commercial land prices by over 10.3% year-on-year (2), both outpacing the national average. This growth is driven by major infrastructure developments, including large-scale redevelopment around Sapporo Station, the planned extension of the Hokkaido Shinkansen to Sapporo by fiscal year 2030, and the expansion of international flight capacity at New Chitose Airport.
In particular, the prices of newly built condominiums in central Sapporo have surged. While price increases in the suburbs have been more moderate, these areas offer higher rental yields than the city center, making them an attractive option for portfolio diversification.
In Niseko, high-end condominiums and vacation homes are being sold for several hundred million yen, with some properties selling out to overseas investors even before completion.
With tourism demand and redevelopment efforts working in tandem, there remains significant potential for capital gains after property acquisition.
Amid the current weak yen, overseas funds and high-net-worth individuals are increasingly turning their attention to real estate in Hokkaido. In Niseko, ultra-luxury condominiums led by investors from Singapore and Hong Kong are being launched one after another.
In Chitose City, an international hotel brand is leading a large-scale resort development project, contributing to rising commercial land prices in the surrounding area. On the infrastructure side, the expansion of the international terminal at New Chitose Airport and the planned extension of the Hokkaido Shinkansen are expected to significantly reduce travel time from major Asian cities.
The development of world-class transportation infrastructure has enhanced the region’s ability to accommodate long-term stays by foreign visitors, contributing to the overall appreciation of local property values. Overall, the combination of foreign-led development and infrastructure upgrades is mutually reinforcing, highlighting the strong investment appeal of Hokkaido’s real estate market.
With its ever-changing natural beauty across the seasons, distinctive food culture, and crisp, clean air, Hokkaido has long been a destination of charm. Today, the recovery of inbound tourism combined with the effects of a weak yen is further energizing the local real estate market.
Another factor contributing to market stability is Hokkaido’s diversified industrial base, which spans tourism, agriculture and fisheries, manufacturing, and IT. Foreign capital inflows continue to grow year by year. That said, population trends and economic structures vary significantly by area, so it’s essential to assess each location based on your intended use—whether for residence or investment.
Across Hokkaido, many regions are facing challenges such as an aging population and population decline, meaning that demand is not growing uniformly. When selecting a property, it is important to evaluate the following factors from multiple perspectives.
For the latest data and specific yield estimates, it’s best to consult real estate media sources or trusted local and international brokerage firms. Make informed decisions by carefully weighing both risks and returns.
Sapporo is home to about one-third of Hokkaido’s population—approximately 2 million people—and is one of the few regional major cities in Japan that continues to see a net population increase. Redevelopment projects are underway in areas such as “Kita 8 Nishi 1” and “Sosei East,” and the planned extension of the Hokkaido Shinkansen to Sapporo by fiscal 2030, along with the expansion of New Chitose Airport’s international terminal, are expected to further boost land values.
Niseko has established itself as a premier long-term stay destination for wealthy foreign visitors, thanks to its world-class powder snow and the presence of international hotel brands. Condominiums and villas typically sell for several hundred million to over one billion yen per unit, and some properties operate under highly profitable models—achieving winter occupancy rates of over 80% and average nightly rates exceeding ¥100,000.
Despite its remarkable success, several factors could potentially challenge Niseko's continued growth and investment appeal.
Demand is heavily skewed toward the winter ski season (December-March), leaving properties largely vacant for eight months yearly. While summer activities like golf and trekking exist, their appeal to international luxury visitors remains uncertain. This seasonality creates operational challenges with year-round costs but compressed revenue periods, requiring careful financial planning and higher peak-season rates.
Luxury condominiums are proliferating rapidly, with multiple large-scale developments adding hundreds of units over the next several years. This raises concerns about future oversupply, potentially making it difficult for owners to maintain premium rates and high occupancy, extending payback periods significantly.
Property prices ranging from hundreds of millions to over one billion yen create extremely high barriers, limiting the buyer pool. Dramatic price increases over the past decade raise questions about future appreciation potential and whether the market "has already peaked."
The two-hour journey from New Chitose Airport limits accessibility compared to urban destinations. While planned infrastructure improvements like extending the Hokkaido Shinkansen are positive, their realization remains years away and depends on significant government investment.
In regional cities, property prices have not surged as much as in Sapporo, and gross yields in the 5–7% range are still attainable. However, investors should factor in the risks of population decline and aging demographics. It’s important to assess whether there are medium- to long-term initiatives in place to support demand, such as municipal tourism strategies and the progress of private redevelopment projects.
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| Area | Key Investment Considerations | Key Risks |
|---|---|---|
| Hakodate | Growth in International Charter Flights and Cruise Ship Calls; Redevelopment of the Bay Area Driving Demand for Hotels and Commercial Facilities | Declining Housing Demand Due to Population Decrease |
| Otaru | Historic Canal-Side Scenery and Growing Inbound Popularity; Ongoing Efforts to Repurpose Traditional Houses into Boutique Hotels | Risk of Low Visitor Numbers During the Winter Off-Season |
| Asahikawa | Asahiyama Zoo Brand and Role as a Logistics Hub; Station Area Redevelopment Driving Increased Rental Demand | Inland Location Results in Shorter Stays by Tourists |
| Kushiro | Experiential Tourism Expanding Around Kushiro Shitsugen National Park; Urban Revitalization Driving Demand for Redevelopment of Aging Buildings | Harsh Climate and High Winter Costs, with a Trend of Population Outflow |
With the boost in purchasing power brought by the weak yen and the rapid recovery of international tourism, resort properties in Hokkaido are gaining increasing prominence.
Among these, Niseko stands out as one of the world’s leading global resort markets. Its primary clientele consists of affluent families and long-stay repeat visitors. In addition to the strong winter season, demand for summer activities is also growing, which is helping to stabilize seasonal fluctuations in cash flow—a noteworthy trend for investors.
In Sapporo, redevelopment and population concentration have led to stable residential and rental demand, making it well-suited for long-term income-focused investments with lower vacancy risk. However, it has less appeal as a vacation destination. While cities like Hakodate and Otaru are gaining attention for their historical scenery and cruise tourism, available data is limited, and liquidity is not as high as in Niseko.
When selecting a property, it’s essential to define your balance between personal use and investment, the expected holding period, and your exit strategy. This should be complemented by cross-checking tourism statistics, infrastructure plans, and official land price data, along with conducting on-site due diligence and seeking professional advice.
In Hokkaido, real estate conditions vary significantly by area—from urban markets like Sapporo to luxury resorts in Niseko and regional cities such as Hakodate and Otaru. Each location presents different price ranges, yield expectations, and supply-demand dynamics. While the recovery of inbound tourism and the weaker yen are enhancing investment appeal, factors such as rising land prices, increasing construction costs, and diverging demographic trends add complexity. As a result, it can be difficult for investors to determine the optimal strategy on their own.
Finding a trusted local real estate company is essential. Local firms have access to up-to-date data such as official land prices, transaction records, and occupancy rates, allowing them to present detailed investment metrics. Based on the investor’s goals—whether stable income, capital gains, or resort use—and budget, they can compare and propose multiple options, such as redevelopment condominiums in central Sapporo, villas in Niseko, or hotel development sites in Hakodate. They also offer significant added value by estimating construction and operational costs, identifying tax and legal risks, and helping to design mid- to long-term cash flow plans.
The key to successful investing lies in having access to high-quality information and choosing the right partners. There’s no need to rush into a purchase, but engaging with experts will give you a clearer picture of the market and help you identify specific risks. As a first step toward entering the promising Hokkaido real estate market, we strongly recommend reaching out to a trusted real estate company to gather insights and refine your investment strategy.
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Major metropolitan areas across Japan
(Tokyo 23 wards, Nagoya, Osaka, Kyoto, Kobe, Sapporo, Fukuoka, etc.)
The first and only partner in Japan (*1) of Forbes Global Properties, an international luxury platform that only allows membership to top real estate companies from each country.
They selectively introduce penthouses, resorts, and condominiums priced over USD 2 million.
Tokyo’s prime districts, top resort areas like Hakuba, Furano, and Niseko.
Real Estate Japan is one of the largest portal sites in Japan with property listings for foreigners (*2), where you can research desired real estate properties by preferred area, requirements, and features.
With diverse affordable housing options available, you can easily find a home that matches your needs.
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(*1) Source: TonTon Forbes Global Properties (https://tonton-inc.com/news/notice/3865)
(*2) Source: realestatejapan (https://realestate.co.jp/en), as of May 29, 2025