A 1,200-Person Shared Housing Complex for Foreign Workers Planned in Central Kutchan, Raising Concerns Among Residents

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Massive 1,200-Person Housing Project for Foreign Workers Planned in Central Kutchan, Niseko

[Kutchan, Hokkaido] A large-scale residential complex for foreign resort workers is set to be developed in central Kutchan, the heart of the internationally renowned Niseko resort area. The proposed site, covering approximately 2.7 hectares of farmland in Minami 6 Higashi 2, will accommodate around 1,200 residents—nearly 10% of the town’s population. This development is a response to the severe shortage of housing for resort employees, making it one of the largest foreign-worker housing projects ever planned in Hokkaido.

Project Details: Location & Developer

The project is spearheaded by Nisade Services, a Kutchan-based real estate company. The development site, owned by a Singaporean investment firm, is located about 5 km northeast of the Hirafu ski resort area, where hotels and resorts are concentrated. The site is also within close proximity to key town facilities, just 500 meters from Kutchan Elementary School and 700 meters from the town hall. The company is currently undergoing farmland conversion procedures to move forward with construction.

The plan includes:
31 housing blocks, each 2-3 stories high, built with steel-frame construction
Construction start as early as April, with move-ins planned by the end of the year
Dual-purpose use: Winter housing for resort employees and summer accommodations for hotel construction workers
400 parking spaces to support residents’ needs
Undisclosed project cost

Why This Project? The Urgent Housing Shortage in Niseko

Kutchan has a summer population of about 15,000, but during winter, over 2,000 foreign seasonal workers arrive to support the booming resort industry. However, due to limited housing, many businesses have struggled to accommodate staff, renting apartments in Hirafu and central Kutchan or constructing small-scale dormitories.

A representative from Nisade Services emphasized the advantages of the central location, stating:

“Supermarkets and amenities are within easy reach, improving convenience for workers. Consolidating housing into one location also simplifies staff management.”

Community Concerns: Traffic, Noise & Safety Issues

Despite its practicality, the large-scale development has sparked concerns among local residents. Issues raised include:
Increased traffic congestion
Noise disturbances
Potential safety risks, especially along school routes

A local resident in his 70s expressed his concerns:

“I worry about whether this will remain a safe and livable neighborhood. Does this plan align with the town’s long-term vision?”

At a community briefing held by Nisade Services late last year, concerns were raised over the number of buildings, the sense of overcrowding, and potential accidents near school zones. The company has pledged to continue discussions with residents and is considering modifications to the project timeline.

Town’s Official Stance

While the project complies with Kutchan’s zoning and building regulations, the Town Planning & Development Department has urged the developer to engage in thorough discussions with local residents to prevent conflicts and ensure smoother community integration.

Why This Matters for Niseko’s Real Estate Market

As demand for resort worker housing continues to rise, large-scale projects like this one could significantly impact Niseko’s real estate landscape. Investors, developers, and local authorities will need to balance rapid growth with sustainable community development.

For the latest Niseko real estate market trends, stay updated with our Niseko Property Market View.

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