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Japanese ski towns like Niseko, Hakuba, and Nozawa Onsen have become hotspots for international property investors seeking rental income opportunities.
International tourist arrivals at Japan's ski resorts have nearly doubled compared to pre-pandemic levels, with foreign visitors making up 80% of all ski travelers and accounting for 90% of spending during peak seasons. Property values in leading ski towns have appreciated dramatically over the past decade, often doubling or tripling as international demand surges.
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Japanese ski towns offer strong rental opportunities with 3-6% annual cash-on-cash returns, driven by international tourism growth and premium nightly rates during peak seasons.
Property prices range from $8,000-15,000 per square meter in prime locations, with 70-90% of rental income concentrated during the December-March ski season.
| Ski Town | Peak Season Nightly Rates (USD) | Property Price per m² (USD) | High Season Occupancy | International Visitor Share |
|---|---|---|---|---|
| Niseko | $70-150 (premium higher) | $8,000-15,000 | 80-90% | 50% of all ski visits |
| Hakuba | $70-150 (premium higher) | $8,000-15,000 | 80-90% | 35% of all ski visits |
| Nozawa Onsen | Under $70 (budget) | $8,000-15,000 | 80-90% | Growing rapidly |
| Off-Season | Significantly lower | Same range | Below 40% | Limited but growing |
| Management Costs | $70-200 per stay | Annual: $4,000-8,000+ | Year-round service | Essential for success |
| Net Returns | Peak dependent | Property dependent | Season dependent | 3-6% annually |
How many international tourists visit Japan's main ski resorts each winter, and how has this changed over the past five years?
International arrivals at Japan's ski resorts have nearly doubled compared to pre-pandemic levels as of September 2025.
Between November 2024 and February 2025, foreign visitors made up around 80% of all ski travelers in Japan's main resort towns. These international tourists accounted for 90% of total spending during peak season, demonstrating their outsized economic impact on local rental markets.
The growth trajectory has been remarkable, with a 50% year-on-year increase recorded for the 2025 peak ski season. Niseko leads the pack, drawing about 50% of all international ski visits to Japan, followed by Hakuba at 35% of the market share.
The primary source markets driving this growth are Australia (30% of international visitors), the United States (20%), and Southeast Asian countries (12-15%). This diverse visitor base provides rental property owners with a stable demand foundation that isn't overly dependent on any single market.
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What are the current average nightly rental rates in the major ski towns during peak season?
Peak season nightly rental rates vary significantly across Japan's main ski destinations, with Niseko and Hakuba commanding premium pricing.
In Niseko and Hakuba, modern apartments and chalets typically list for USD $70-150 per night for shared or private rooms during peak season. Luxury chalets and large apartments command much higher rates, often exceeding $300-500 per night for premium properties with ski-in/ski-out access.
Nozawa Onsen offers more budget-friendly options, with private rooms available for under USD $70 per night, though this represents the lower end of the market. Better quality lodgings in Nozawa Onsen typically range from $100-200 per night during peak periods.
These rates reflect a significant premium over off-season pricing, when nightly rates can drop by 50-70%. The peak season rates are driven by limited supply during the busiest months of December through March, when international demand reaches its highest levels.
What are the average occupancy rates in these ski towns across both high and low seasons?
Occupancy rates in Japanese ski towns show dramatic seasonal variation, with stark differences between peak and off-season periods.
During high season (December-March), occupancy rates in major ski towns like Niseko and Hakuba are very strong, often exceeding 80-90%. This high occupancy is particularly pronounced in foreigner-focused accommodations, where international demand drives consistent bookings throughout the peak months.
In contrast, low season occupancy drops sharply across all ski towns. Outside the peak December-March ski periods, occupancy typically falls below 40%, creating a significant revenue gap that property investors must account for in their calculations.
The seasonal nature of the business means that successful rental properties must generate enough income during the 3-4 month peak season to cover annual expenses and provide returns. Properties with off-season appeal, such as those near hot springs or hiking trails, tend to maintain slightly higher off-season occupancy rates.
How do rental yields in Japanese ski towns compare with other Asian or European ski destinations?
Japanese ski town rental yields remain competitive in the global market, though they face different dynamics compared to established European destinations.
Rental yields in Japanese ski towns are especially attractive when factoring in strong high season occupancy rates and premium nightly rates during peak periods. Niseko's rental yields are particularly robust due to growing off-season tourism and consistently high winter demand from international visitors.
However, Japanese ski towns still lag behind premium European resorts like Chamonix or Verbier, where occupancy and nightly rates consistently remain higher outside winter months. European destinations benefit from more developed summer tourism infrastructure and longer established international reputations.
Compared to other Asian ski destinations, Japan holds a significant advantage due to its established international reputation, reliable snow conditions, and proximity to major Asian population centers. The combination of cultural appeal and world-class skiing creates a unique value proposition that other Asian markets struggle to match.
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What are the current property purchase prices per square meter in the main ski areas?
Property prices in Japan's premier ski destinations reflect the international demand and limited supply in prime locations.
Chalets, apartments, and condos in prime areas of Niseko, Hakuba, and Nozawa typically range from USD $8,000-15,000 per square meter for new and high-end builds. This pricing applies to modern constructions with quality finishes and desirable locations within walking distance of ski lifts or village centers.
Resale and older properties are available for less than the premium new-build pricing, though buyers should factor in potential renovation costs. Properties requiring significant updates may be available for $5,000-8,000 per square meter, depending on condition and location.
Prices spike further for ski-in/ski-out locations with luxury amenities, where premium properties can exceed $20,000 per square meter. These top-tier properties typically offer the highest rental yields due to their convenience and appeal to international visitors willing to pay premium rates.
How have property values in these towns appreciated over the past ten years?
Property values in Japan's leading ski towns have experienced dramatic appreciation over the past decade, driven by surging international demand.
Property values in Niseko, Hakuba, and other leading ski towns have often doubled or tripled as international demand has surged. Niseko has set the pace for growth, becoming the benchmark for ski resort property appreciation in Japan.
Some areas saw brief dips during the COVID years when international travel restrictions limited visitor numbers. However, these markets have since rebounded strongly and surpassed previous highs, with 2024-2025 marking new peak valuations in most major ski destinations.
The appreciation has been particularly pronounced in properties with direct ski access or premium village locations. Secondary locations and older properties have also benefited from the overall market growth, though to a lesser extent than prime real estate.
This dramatic appreciation has created significant wealth for early investors but has also raised questions about future growth sustainability and entry points for new investors.
What government restrictions or foreign ownership rules apply to buying and renting properties in Japanese ski resorts?
Japan maintains relatively open policies toward foreign real estate ownership, with minimal restrictions on property purchases in ski resort areas.
Japan generally permits foreign ownership of real estate without residency restrictions, and buyers can freely rent out properties with proper licenses. This open approach has been a key factor in attracting international investment to ski resort markets.
Certain towns require registration for short-term rentals and compliance with local accommodation and safety laws. These regulations typically involve obtaining proper business licenses, meeting fire safety requirements, and registering with local tourism authorities.
There are no major barriers for foreign buyers looking to purchase and operate rental properties in ski towns. The regulatory environment is generally considered investor-friendly, though owners must ensure compliance with local short-term rental regulations that have been tightened in recent years to address over-tourism concerns.
What is the average cost of property management, cleaning, and maintenance for short-term rentals in these towns?
| Service Type | Cost Range (USD) | Frequency/Details |
|---|---|---|
| Annual Property Management | $4,000-8,000+ | Full-service including guest management, maintenance coordination, key service |
| Cleaning Per Stay | $70-200 | Depends on unit size, occupancy level, and services included |
| Routine Maintenance | $1,000-3,000 annually | Basic upkeep, seasonal preparations, minor repairs |
| Marketing and Booking | 10-20% of revenue | Platform fees, professional photography, listing management |
| Utilities (Peak Season) | $200-500 monthly | Heating, electricity, water during high-occupancy periods |
| Insurance | $800-2,000 annually | Property and liability coverage for short-term rentals |
| Emergency Repairs | $500-2,000 annually | Unexpected issues, equipment replacement, weather damage |
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Japan versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
How seasonal is the rental income—what percentage comes from the ski season versus off-season activities?
Rental income in Japanese ski towns is heavily concentrated during the winter months, creating significant seasonal revenue patterns.
Ski season typically accounts for 70-90% of annual rental income in Niseko, Hakuba, and Nozawa Onsen. This concentration means that the December-March period must generate enough revenue to sustain the property investment throughout the entire year.
Summer activities such as hiking, biking, and hot springs are growing as off-season attractions, but they still represent a minor share of total income. Off-season revenue typically accounts for only 10-30% of annual income, though this varies significantly by property location and amenities.
Properties located near year-round attractions like hot springs or hiking trails tend to perform better during off-season months. Some operators are successfully developing summer programs and activities to extend the revenue season beyond traditional ski months.
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What are the projected infrastructure or tourism developments that could impact rental demand in these ski towns?
Significant infrastructure investments are planned across Japan's ski regions, with potential positive impacts on rental property demand.
Major infrastructure upgrades are projected, including new ski lifts, enhanced transportation links, and expanded resort facilities. These developments are designed to support ongoing growth in tourism and rental demand across the main ski destinations.
Airport expansions in Sapporo and improved high-speed rail options are expected to reduce travel times and costs for international visitors. These transportation improvements could significantly increase accessibility and visitor numbers to ski resorts in Hokkaido and central Japan.
Resort facility expansions include new ski runs, improved snowmaking systems, and enhanced village amenities. These upgrades aim to extend ski seasons and improve the overall visitor experience, potentially supporting higher rental rates and occupancy levels.
The Japanese government's continued focus on tourism promotion through initiatives like extending visa-free travel programs could further boost international visitor numbers to ski destinations.
How competitive is the current rental market in each of the main towns?
The short-term rental market in Japan's ski towns has become highly competitive, with thousands of active listings across major platforms.
The rental market is highly competitive, with Niseko and Hakuba each hosting thousands of active short-term rental listings on platforms like Airbnb and other vacation rental sites. This competition is particularly intense in central village areas and ski-in/ski-out locations where premium properties compete for the same high-end international clientele.
Nozawa Onsen is growing rapidly in terms of rental listings but still trails the two market leaders in total inventory. The smaller scale of Nozawa Onsen means that new listings can have a more significant impact on local market dynamics.
Market saturation is strongest in the most desirable locations, where properties must differentiate themselves through superior amenities, service levels, or unique features. Properties in secondary locations face less direct competition but may also attract lower nightly rates and occupancy levels.
What net cash-on-cash returns can investors realistically expect after factoring in all costs and occupancy rates?
Net cash-on-cash returns for ski town rental properties in Japan typically range from 3-6% annually after accounting for all expenses and occupancy patterns.
Typical net cash-on-cash returns for investors range from 3-6% annually in prime ski towns, after accounting for property taxes, management fees, maintenance costs, and realistic occupancy rates. These returns reflect the high seasonal concentration of income and significant operational expenses.
Higher yields are possible for top-performing, well-managed properties during bumper ski seasons, particularly those with ski-in/ski-out access or unique amenities that command premium rates. Some exceptional properties in prime locations have achieved returns above 8% in particularly strong seasons.
Off-season vacancy risk remains a significant factor in return calculations. Properties that fail to generate sufficient peak-season income or face higher-than-average vacancy periods may see returns fall below 3%, making them less attractive investment opportunities.
Investors should factor in potential capital appreciation when evaluating total returns, as property value growth has historically provided significant additional returns beyond rental income in Japan's ski markets.
It's something we develop in our Japan property pack.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Japanese ski towns continue to offer compelling rental investment opportunities, driven by strong international tourism growth and limited supply in prime locations.
However, the seasonal nature of income and high operational costs require careful property selection and professional management to achieve target returns of 3-6% annually.
Sources
- CNBC - Skiing in Japan: Winter brings record number of international tourists
- TTR Weekly - Visa Japan ski tourism on the rise
- Visa - Japan's snowy slopes deliver tourism boost in ski season
- Tourism Review - More ski travelers head to Japan
- MNK Real Estate - International ski tourism fueling Niseko's year-round growth
- Oz Snow Adventures - Hakuba Apartments
- Reddit - Cost of Japan snowboarding discussion
- Toshihiko Yamamoto - Guide to investing in Japan's ski resort markets