What North Hills’ New Zoning Means for Hanazono Property
North Hills has traditionally been viewed as a low-density residential enclave near Niseko Hanazono Resort—but a recent planning change could materially alter the investment case for qualifying properties in the area.
What changed in North Hills?
Certain sites that were previously restricted to predominantly private residential use may now be eligible to apply for minpaku or hotel-style accommodation approval.
That distinction matters. A property that could previously function primarily as a private holiday home or long-term lifestyle investment may now have the potential to generate short-term rental income.
It does not mean that every North Hills property automatically qualifies for accommodation use. Approval remains dependent on the individual plot, planning designation, proposed building, fire-safety compliance and the licence or registration being pursued.
Kutchan Town advises property owners to confirm the relevant land-use designation and operating requirements before proceeding with a minpaku application. View Kutchan Town’s guidance on private lodging businesses.
Why does this matter for Hanazono property?
North Hills occupies an increasingly valuable position within the wider Hanazono property market.
The neighbourhood offers low-density surroundings and larger land parcels while remaining close to Niseko Hanazono Resort, the Park Hyatt Niseko Hanazono and the area’s expanding hospitality infrastructure.
Historically, buyers had to choose between the privacy and space of North Hills and the income potential available in more commercially orientated Niseko locations.
The possibility of approved short-term accommodation begins to narrow that divide.
For qualifying North Hills properties, the potential combination now includes:
Low-density residential surroundings
Proximity to Niseko Hanazono Resort
Larger landholdings
Mount Yotei and surrounding mountain views
Private-use flexibility
Potential short-term rental income
That could broaden the area’s appeal beyond lifestyle buyers to investors looking for land near Hanazono with an income-producing strategy.
A rare North Hills double lot
One current opportunity illustrates why the zoning change is significant.
This rare North Hills double lot comprises more than 2,100 m² of land, with direct Mount Yotei views. It is approximately 750 metres from the Hanazono lift and less than a ten-minute walk from the Park Hyatt Niseko Hanazono.
The land was already compelling as a low-density lifestyle holding close to the resort. The ability to explore minpaku or hotel-style accommodation approval introduces an entirely different potential use case.
Subject to planning and licensing approval, a future owner could consider a private residence, an income-generating accommodation concept or a project combining personal use with managed rentals.
Is North Hills still undervalued?
North Hills remains less internationally recognised than Hirafu or the immediate Hanazono resort precinct. However, its proximity to Hanazono, larger plots and changing permitted-use potential make it increasingly difficult to overlook.
Zoning and planning changes do not guarantee development approval, operating income or capital appreciation. They can, however, change what a piece of land may be capable of becoming—and therefore how the market values it.
For buyers following Niseko land and Hanazono real estate, that is the real North Hills story.
For further information about this North Hills double lot or other land opportunities near Niseko Hanazono Resort, contact Off-Market Niseko.
Disclaimer: Planning designations and accommodation eligibility must be confirmed for each individual property. Minpaku registration, hotel licensing and development approval remain subject to applicable national, prefectural and municipal requirements. This article does not constitute legal, planning, tax or investment advice.
Image: Aerial view of North Hills by Off-Market Niseko. The photograph is illustrative and does not show the legal boundaries of the property.
