In Kutchan, Hokkaido – home of the world-famous Niseko Ski Resort – a massive housing project is moving forward. Once completed, it could house 1,200 people, about one-tenth of the city's current population.
The project is big enough for 1,200 residents
Niseko has become a global resort destination, and Kutchan now ranks first nationwide in terms of growth of foreign residents. That surge has already created tension among locals.
City councilor Hidetoshi Sato escorted the journalists to the planned site.
Kutchan councilor Hidetoshi Sato:
"This entire area is earmarked for housing. Imagine how uneasy the residents will feel knowing that hostels for 1,200 people can suddenly spring up here."
A land approximately the size of four football fields with views of Mount Yotei is being prepared for construction. Plans call for approximately 30 buildings housing 1,200 residents – about 10% of Kachanan's population.
"It's just housing, not just for foreigners," say developers
Niseko's thriving ski industry has attracted many foreign workers in recent years.
A French bartender working locally:
"I've been in Niseko for about two years. I share a house with four other people, and the rent is 30,000 yen a month."
It is now common to see foreigners in Kutchan, just a 10-minute drive from Niseko. Local prices have also increased with their arrival.
“Tourist Price” Burgers
Burgers can cost more than 8,000 yen, and seafood platters can reach 30,000 yen – a classic example of tourist pricing to visitors.
Government data shows that Kutch ranks first nationwide in terms of growth in the number of foreign residents. In 2024 alone, 833 foreigners joined the city, and by January 2025, that number had increased by nearly 2,000 from two years earlier.
The housing scheme is mainly for seasonal workers, including restaurants and bars. The developers insist: "It is not built specifically for foreigners. This is regular housing. Because a lot of people come here to work, naturally, many people will live here."
Sato disagreed: "To say it's not for foreigners is sophistry. I wish they would build in less populated areas and provide shuttle buses."
Nearby residents expressed concern: "Now we can't sleep peacefully at night." Others said that many foreigners only stay for the winter season, leaving after the snow melts. Complaints about garbage, late-night noise, and occasional fights have already surfaced.
Developers have applied to convert agricultural land into residential land, and Hokkaido authorities are reviewing the request.
Some locals say more housing is needed
On December 2, residents submitted 4,315 signatures in opposition to the project. He says the city's bulletin boards already reflect rising crime and disorder.
But not everyone is against it. Some welcome the development: "Foreign visitors help the city develop. We need to keep up with the times." Others point to the housing shortage: "Rent is now 80,000 yen per month. If new apartments are built, more people can have a place to live. This is a good thing."
