US$600million+ resort condo development for Niseko

Another week, another multi-billion Yen project announced for Niseko. Singapore-based Shenning Investments is developing a luxury Capella-branded resort in Niseko’s Hanazono district with a planned opening in 2024 ~ 2025. The total cost of the project has not been disclosed but some have estimated it to be over 70 billion Yen (approx. 664 million USD).

There will be two hotels and three condo-hotels, all in 3-story buildings and with a total of around 500 ~ 540 rooms. In addition, 33 detached villas will also be built for sale. Drilling will be done for hot spring water and well water. 

This would be the first Capella resort in Japan, although another developer had planned a Capella condo-hotel in Niseko back in 2008 (it was canned a short while after the global financial crisis).

The tentatively-titled Niseko Hanazono Hills project sits on a 42-hectare site is located approximately 2.5 kilometers west of Kutchan Station in the Hanazono district.

Compared to the more well-known Hirafu district, Hanazono remains largely undeveloped, offering large swathes of nature and idyllic scenery. One of the landmark developments in this area is Pacific Century Premium Developments’ Hanazono Resort, which includes the Park Hyatt Niseko Hanazono Residences. Hong Kong developer Apex Property Limited is developing a 10 billion Yen villa and hotel project just south of the Capella site. Hotel accommodation in Hanazono still remains in relatively low supply compared to Hirafu, while its proximity to Kutchan Station – a station earmarked to be a stop on the Hokkaido Shinkansen by 2030 – has foreign developers keen to secure land. 

Despite the pandemic putting a temporary halt to its foreign tourist market, land in Niseko continues to garner high prices. A government Standard Land Price survey site saw land values increase 32% year-on-year as of July 2020. The same site saw land prices increase by 66.7% in 2019, while the value has almost tripled since 2015.

Location

Asahi, Kutchan, Hokkaido

Sources:
The Hokkaido Shimbun, October 15, 2020.
The Nikkei Shimbun, October 17, 2020.

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