HOKKAIDO, Nov 08, 2025 (News On Japan) - The Niseko area at the foot of Mount Yotei, about a two-hour drive from Sapporo, is now in the spotlight once again as one of Japan’s top resort destinations prepares for the peak ski season. Fueled by surging inbound demand, construction of hotels and leisure facilities is rapidly expanding across the region—but local residents are increasingly alarmed by the rise in illegal land development and unauthorized building extensions.
A recent investigation revealed that a Sapporo-based company had carried out an unapproved expansion on a single-story building that had passed its inspection in April. When authorities revisited the site last month, they discovered that the structure had been extended without permission. Signs reading “Construction Halted” and “Use Prohibited” are now posted on-site.
With cranes towering above new developments and ski lifts rising behind them, the once-quiet Niseko landscape has transformed into a sprawling construction zone. Residents say that along with the benefits of tourism, the negative side of unregulated development is becoming impossible to ignore. “There are illegal constructions and unauthorized tree cutting—those things are definitely negative,” one resident commented, adding, “I just want them to follow the basic rules.”
Population in the town of Niseko is around 4,500, yet last year the area saw a total of 200,000 visitors—driven by foreign investors and developers buying up land, which has sent real estate prices soaring. Around 20% of the residents are now foreigners. “People come in with carts, buying bundles of goods worth tens of thousands of yen,” said a local store owner. “To outsiders, rent here looks very high. The town has modernized quickly, but that’s not always a good thing.”
In neighboring Kutchan Town, a contractor reportedly hired by a foreign national carried out large-scale deforestation without filing the necessary applications before constructing two houses. When reporters visited the site, it had already been sealed off and declared off-limits. In response, the Hokkaido government opened an online reporting hotline last month to handle growing complaints.
As development accelerates, some residents are being forced out of their homes. One woman who moved to Niseko eight years ago said she was told to leave her rental house three months ago. “The owner said they were either going to sell or convert it into a vacation rental, and that my lease wouldn’t be renewed,” she explained. “When I talked to others, I found out many were in the same situation.”
With rents rising sharply, more people are relocating from Niseko to nearby towns such as Iwanai, about an hour’s drive away. “There are almost no vacant houses anymore,” said a local realtor in Iwanai. “Whenever one opens up, it’s taken immediately.”
Meanwhile, local governments are struggling to keep track of property owners. In Kutchan Town, the names of those who cannot be reached—many believed to be foreigners—have been publicly posted after tax notices went unanswered.
Experts warn that while the “Niseko bubble” is transforming the area into a playground for the wealthy, long-term residents risk being left behind. “The town is turning into a community for affluent outsiders,” said one local commentator. “We need urban planning that allows residents to keep living here.”
Professor Takahashi Jin of the Graduate School of Policy Studies emphasized that despite the negative aspects, there are economic benefits. “Hotels and villas create local employment opportunities,” he said. “If 300 people are hired in the construction sector alone, that’s a positive outcome compared to the previous trend of population decline and falling tax revenues.”
As Niseko continues its rapid transformation, the challenge for local authorities is to ensure that development remains sustainable and that communities remain livable. The government plans to finalize its new basic policy on foreign land ownership and investment by January next year.
Source: FNN
