Niseko Tourism and Property Market Review 2023

Overview

In the wake of Niseko’s official border reopening in October 2022, Niseko tourism sector has witnessed a substantial influx of visitors, reaching 2.6 million in YTD2023. This represents an impressive year-on-year growth rate of 64%, highlighting a sustained tourism demand for the Niseko area.

NISEKO TOURISM MARKET PERFORMANCE

Among the total number of overnight visitors, international arrivals surged to 59% in YTD2023, compared to just 34% in 2019 This upward trajectory is expected to continue with the revival of more direct international flights. The analysis by C9 Hotelworks indicates that the tourism market is on track to return to pre-COVID levels by 2024.

Shifting our focus to Niseko’s real estate sector, land prices in 2023 exhibited an uptick, according to The Ministry of Land, Infrastructure, Transport, and Tourism Residential land prices saw a modest 1% increase this year. Meanwhile, commercial and retail land prices have accelerated by 8%.

Across the market, the average sales price per square meter for condominiums in Hirafu stood at USD14,644. These projects have experienced a slowdown in absorption rates due to a surge in available units . Nevertheless, the absorption rates for houses and land plots remain notably high, particularly those in the Hanazono area.

Turning to property, the majority of upcoming projects are concentrated in Hirafu and Outer Hirafu, constituting 48% of the total, followed by Hanazono at 34%, and Higashiyama & Niseko Village with 8% Notable projects in the pipeline include New World La Plume Niseko Resort (2024), Cassia Hotel and Residences Hirafu (2026), and Six Senses Niseko (2026).

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