Furano's Tourism Boom Sends Property Prices Soaring as Residents Face Rapid Change

A Growing Resort Town Faces the Costs of Success

Land prices in Furano's Kitanomine district have risen fivefold in five years, while the Hokkaido town now receives about 250,000 foreign overnight guests annually. Near its ski slopes, government assessed land values rose 27.1% in 2025, outpacing the famed Niseko region and putting Furano at the centre of a growing tourism and property boom.

As of August 31, 2025, developers are building and planning hotels, condominiums and vacation homes for a destination known for both winter powder snow and summer lavender fields. Furano's hotel bed capacity is expected to increase from 5,400 in 2023 to 6,400 by 2026.

The expansion is happening in a community whose population has fallen from 23,000 to 19,000 over the past decade. Foreign resident numbers have quintupled during that period, and hospitality and construction businesses face severe labour shortages despite the flow of investment.

Furano's appeal rests partly on what distinguishes it from more internationalised resorts: a working agricultural town, local restaurants, festivals and a traditional Japanese atmosphere. Those same qualities are under pressure as rising property costs and new buildings change neighbourhoods.

Niseko's rise into a globally recognised ski destination has given developers a model for what Furano might become. For residents, the immediate issue is more practical: whether the growing visitor economy can provide jobs and support local businesses while keeping the town affordable and preserving the places that draw visitors.

Winter Snow and Summer Flowers Bring Visitors

Furano, in central Hokkaido, has long attracted travellers with its lavender fields, rolling hills and powder snow. Its growth now extends beyond traditional seasonal peaks, with domestic and international visitors coming for skiing, flower fields, outdoor activities and cultural events throughout the year.

Government data puts annual foreign overnight guests at about 250,000, a 4.2-fold increase over the past decade and 1.7 times the level before the pandemic. In 2023, total tourist numbers, including domestic and international visitors, reached 1.89 million, nearly matching the highs recorded before the pandemic.

Summer is particularly important to Furano's tourism economy. More than 1.5 million visitors come to see its famous flower fields, making the summer season busier than winter. Many ski destinations struggle to draw customers during the green season, the months when snow gives way to vegetation. Furano's flowers and countryside give visitors a separate reason to come.

That combination attracts investors seeking rental income across the year. Accommodation can serve people visiting for winter sports and those travelling for summer scenery, rather than depending on a single season.

Access also helps. Furano is about two hours from Sapporo and within reach of major airports, making it accessible to both Japanese and overseas travellers. Its central town offers access to everyday amenities alongside the resort experience.

Kitanomine Leads the Property Surge

Kitanomine, at the base of Furano's ski resort, has become the focus of the property boom. Land prices there have increased fivefold in five years, with some plots selling for as much as 2.5 million yen per square metre.

In 2023, the district recorded a 20.1% annual increase in standard land prices. That was the third highest rise in Hokkaido and among the highest nationwide. In 2025, government assessed values near the ski slopes increased 27.1%, exceeding growth in the Niseko region.

Government assessed values provide a benchmark for land prices, while a sale price is the amount paid for an individual plot. Furano's figures show strong growth in those benchmarks alongside very high prices for some transactions near the resort.

The demand comes from developers and investors seeking sites for hotels, condominiums and vacation homes. Rising visitor numbers, combined with a limited supply of accommodation of the quality those buyers seek, have encouraged new projects.

Furano is part of a wider rise in tourism related property values across Japan. National average land prices increased 2.7% in 2025, the fastest pace in more than a decade, with destinations such as Hakuba and Furano leading the growth.

The principal dates and targets in Furano's expansion show how quickly the change has gathered pace:

• 2019: About 50 lots in Kitanomine were reported to be owned by foreign buyers.
• 2023: Furano recorded 1.89 million tourists, while Kitanomine's standard land prices rose 20.1% and the town had 5,400 hotel beds.
• 2025: Government assessed land values near Furano's ski slopes rose 27.1%, while national average land prices increased 2.7%.
• 2026: Furano's hotel bed capacity is expected to reach 6,400.

Developers Move Closer to the Slopes

Meiwa Jisho, a developer based in Tokyo, has acquired a plot of 1,500 square metres near the Kitanomine ski slopes. The site is just 400 metres from the gondola, placing it close to the lift that carries visitors towards the skiing area.

The company is planning either a hotel or a hotel condominium. A hotel condominium combines individually owned accommodation units with hotel use. The site's zoning permits hotels, restaurants and retail, giving the developer several possible uses for the land. The choice between a hotel and a hotel condominium has not yet been settled.

Zekkei Properties has developed Fenix Furano, a luxury condominium property in Kitanomine with direct access to the ski slopes. It has 33 units and 62 keys, the accommodation industry's term for separately rentable rooms or spaces, and targets both winter and summer visitors.

Flint Furano, a local company, has introduced Furano Lofts and Chalet, accommodation at the upper end of the market with private onsens and five star amenities. Onsens are Japanese hot spring baths, a feature that adds to the appeal of a resort stay.

Kuukan Inc.'s Shikauchi Furano offers boutique private homes between Farm Tomita and the ski resort. Its combination of comfort and access to adventure reflects the wider effort to serve visitors interested in both the countryside and outdoor recreation.

Hokkaido Tracks Resort Properties, which played a major role in Niseko's rise, is also present in Furano. Its involvement is a sign of investor confidence in the town's prospects as a resort property market.

More Beds and More International Investment

Furano's accommodation expansion includes new hotels, condominiums and boutique lodgings under construction. Local and international brands are seeking a foothold as the town prepares to increase hotel bed capacity from 5,400 in 2023 to 6,400 by 2026.

For visitors, that expansion means a wider choice of places to stay. For operators, it creates a need for people to staff and maintain the properties, alongside the demand for construction workers to build them.

Foreign investment is another part of the changing market. A 2019 report put the number of lots owned by foreign buyers in Kitanomine at around 50. That number was considered likely to have grown by August 2025, although no updated count was given.

Signs reading "FOR SALE" and signage in foreign languages have become increasingly visible throughout the district. They reflect an area drawing interest from buyers and visitors beyond Japan, alongside domestic developers and local accommodation businesses.

Rising Prices Change Life for Residents

Furano's property boom has brought investment and new opportunities, but rising land prices have made it harder for some residents to afford property or remain in their neighbourhoods. The replacement of traditional structures with stylish new buildings has also changed the appearance of familiar streets.

Some longtime residents worry about losing the town's old charm. Their concerns sit alongside a population decline from 23,000 to 19,000 over the past decade, even as foreign resident numbers have increased fivefold.

Mrs. Sato, a longtime resident and local business owner, described how the changes feel to someone who knew Furano before the latest wave of development:

Furano used to be a quiet place where everyone knew each other. Now, it feels like a different town. The new hotels are beautiful, but I hope we don't lose what makes Furano special.

Her concern centres on the relationship between new investment and the existing community. Attractive hotels bring visitors, but residents also value the familiar businesses, buildings and personal connections that make Furano a place to live.

Furano's traditional Japanese atmosphere is itself part of its tourism appeal. Local restaurants, festivals and cultural sites help distinguish it from resorts that have become more internationalised. Preserving that character is therefore closely connected to the town's appeal to visitors as well as the daily lives of residents.

Farms, Roads and Mountain Rescues Face Pressure

Local farmers face a particular problem when visitors enter farmland to take scenic photographs. The fields and rural views are among Furano's attractions, but trespassing brings tourism directly into land used for agriculture.

Some visitors are unfamiliar with local customs, including garbage sorting and safe conduct on public roads. Those misunderstandings have contributed to friction between the community and the growing international visitor population.

Mountain safety is another concern. The number of foreign tourists involved in backcountry skiing accidents is rising, leading to costly rescues that are often covered by taxpayers. Backcountry skiing takes place outside the usual managed ski runs, where an accident can require a substantial rescue response.

Furano's efforts to encourage responsible tourism include educating visitors about local customs. Respect for farmland, correct waste disposal and safe behaviour on roads and in the mountains all matter to the people whose homes and workplaces form part of the destination.

Businesses Need Workers as Young People Leave

Furano's hospitality and construction sectors face severe labour shortages. Some hotels cannot operate at full capacity because they lack staff, leaving a practical constraint on the benefits of growing visitor demand.

More accommodation creates more places to stay, but hotels also need workers to receive guests, clean rooms and keep services running. The planned expansion in bed capacity therefore comes alongside pressure on the workforce.

Many local high school students plan to leave Furano after graduation. The city has organised job fairs and practical work experiences to encourage them to stay and consider local employment.

Those initiatives connect the tourism boom to the town's population challenge. Investment is bringing new buildings and business activity, while Furano is trying to retain young people who could work in its expanding economy.

Construction faces the same shortage of workers during a period of increased development. For the community, the question of who will build and operate the new properties is already part of everyday economic life.

Furano's Niseko Comparison Has Limits and Lessons

Niseko's transformation into an international ski destination has set a precedent for Furano. Developers see the possibility of entering a growing resort market before it reaches the same level of international recognition.

Furano offers a different mix of attractions: more sunshine, a central town with convenient amenities, a less internationalised Japanese atmosphere and a summer season that is even busier than winter. Its flower fields and countryside give the investment case a second seasonal foundation.

Investors are also drawn by Furano's accessibility, infrastructure and proactive approach to tourism development. For property owners, the combination of winter and summer demand offers opportunities for rental income throughout the year, alongside the prospect of further growth in land values.

Local authorities, developers and community groups are increasingly aware of the need to balance that growth with the preservation of cultural and natural heritage. Efforts include supporting local businesses, encouraging responsible tourism, promoting jobs for young residents and using zoning and development regulations to manage growth.

Ishii, a major investor in Furano, described both the town's appeal and the need to share the benefits:

Furano's potential lies in its ability to offer something for everyone, nature, culture, adventure, and relaxation. But we must work together to ensure that growth benefits everyone, not just a few.

Furano's transformation is still unfolding, with more hotel projects in the pipeline, growing international interest and a stronger reputation as a destination across the seasons. The next stated accommodation target is 6,400 hotel beds by 2026.

Longtime residents and the experience of Niseko will help shape how Furano manages that expansion. The concrete tasks are already visible: staffing hotels, keeping opportunities open to local people, protecting farmland and maintaining the character that visitors come to experience.

Key Points

• Furano receives about 250,000 foreign overnight guests annually, 4.2 times the level a decade earlier and 1.7 times the level before the pandemic.
• Total tourist numbers reached 1.89 million in 2023, while summer flower tourism attracts more than 1.5 million visitors.
• Kitanomine land prices have risen fivefold in five years, with some plots selling for up to 2.5 million yen per square metre.
• Government assessed land values near Furano's ski slopes increased 27.1% in 2025, outpacing the Niseko region.
• New accommodation projects include investment by Meiwa Jisho, Zekkei Properties, Flint Furano and Kuukan Inc.
• Hotel bed capacity is expected to increase from 5,400 in 2023 to 6,400 by 2026.
• Furano's population has fallen from 23,000 to 19,000 over a decade, while foreign resident numbers have quintupled.
• Rising housing costs, labour shortages, farmland trespassing and mountain rescue costs are putting pressure on the community.
• Local efforts focus on responsible tourism, jobs for young people, support for local businesses and management of development.