A briefing session regarding the Yamada and Kabayama districts was held on 6th February, with another held the following day for the Asahi, Hanazono, and Iwaobetsu districts with prominent Niseko property, real estate, and development representatives in attendance.

The sudden growth and lightning fast development of Niseko-Hirafu caught the authorities in Kutchan off guard. A non-binding agreement amongst Niseko's real estate development companies had existed, but it was often ignored and was widely considered to be ineffectual. A response in the form of regulations was expected, if not overdue.

The regulations are eagerly anticipated by some looking to protect the village atmosphere, some who side with the pensions getting their views eclipsed by four and five story tall condominiums, and even by some more prominent local players who would simply like to lock in their gains in the Niseko property market.

However, the regulations are maligned by others, some who bought Niseko property before the regulations were imposed and had to rush to get approval before implementation, and others who fear over-regulation will subdue a real estate market that has been running bullish uninterrupted for five years. There have also been murmurs that the regulations are being imposed on local developers without due consultation.

[Proposed Niseko Property Regulations: Kabayama & Yamada]
[Proposed Niseko Property Regulations: Asahi, Hanazono, & Iwaobetsu]

Here is an outline of the briefing:

1. Kutchan Now
   1. Kutchan town, in particular Niseko's Grand Hirafu, is experiencing rapid growth in the tourism sector and there are a large number of hotels and condominiums under construction.
   2. Area surrounding the resort if frequently purchased and sold.
   3. Number of foreign hotel guests increased 370% from 2003 to 2006 (from 4,000 to 15,000)
   4. Number of total stays of foreign guests increased 330% from 2003 to 2006 (from 27,000 to 90,000)
   5. Editor's note: All indication are that the numbers have at least doubled since 2006 as well.
2. The Effects
   1. Positive effect on local economy (hotel stays, dining, shopping).
   2. Branding of Niseko-Hirafu
   3. Editor's note: Left unstated were the effects on what is at heart an agricultural town in rural Japan suddenly being swamped by foreign tourists that they were ill-equipped to accommodate culturally or linguistically. Perhaps not relevant in a Niseko property development sense, but necessary for these regulations and their implementation to be considered in context.
3. Challenges
   1. Losing beautiful natural environment.
   2. Disposal of snow is a problem.
      1. Editor's note: This is a serious concern in a place where 15+ meters of snow fall each year. In an average Niseko winter the amount of land needed to pile fallen snow can exceed a building's footprint. This means half your land. A huge percentage of Kutchan's budget is devoted to snow removal, and convoys of trucks hired from all over Hokkaido are often seen hauling it away.
   3. Anticipation of inappropriate construction that would not fit in with the resort such as Pachinko parlors, factories, and adult-entertainment facilities.
4. Applicable Law
   1. Quasi-Urban Planning District
   2. Article 5-2 in Urban Planning Law
   3. "Prefectural and city governments can designate certain areas, in which considerable construction and land development are progressing or will be expected in the future, located outside the Urban Planning Districts as Quasi-Urban Planning Districts, when there are threats to future development and maintenance of the environment in the area unless land use is ordered and the environment is protected, in view of improvement of agricultural developing areas with natural and social conditions, regulations on land use stipulated by law, other regulations stipulated by Ministry of Land, Infrastructure and Transport regarding the current and past state of the areas.
5. Districts Included:
   1. Asahi, Hanazono, Iwaobetsu, Kabayama, & Yamada
   2. Niseko-Hirafu lies within the district of Yamada (Aza-Yamada).
6. Areas Excluded
   1. Conservation-zoned Forest Areas
   2. National Parks and Quasi-National Parks
7. Types of Regulations
   1. Building-to-Land Ratio: the proportion of the site taken up by the building.
   2. Floor-Area Ratio: the proportion of the site that is floor area.
   3. Connection to Road: sites must have a road connection.
   4. Angle Between Building and Road: building height regulated for environmental reasons such as lighting and ventilation.
   5. Angle Between Building and Neighboring Site: building height regulated for environmental reasons such as lighting and ventilation.
8. Grandfather Clause
   1. There will be no effect on living in or using buildings that exist before regulation implementation.
9. Desired Effect of Regulations
   1. Prevent various land use problems.
   2. Brand Niseko-Hirafu as an international resort.
   3. Make Niseko a well regulated area with high property values.

Although these regulations are currently for Kutchan only, Niseko is keeping a close eye on their implementation and is likely to follow up with similar regulation of their own for Niseko-Moiwa, Niseko-Annupuri, and Niseko-Higashiyama areas.

If you have any questions about Kutchan's proposed property regulations that neither PDF 1 nor PDF 2 answer, please let NisekoProperty.net know and we'll look into it for you.