JR Hokkaido has officially announced significant modifications to their redevelopment plans for the area surrounding Sapporo Station's South Exit. In a press conference on March 19, 2025, President Katsuhiko Tsumekane disclosed an updated approach that will see the project unfold in two distinct phases.
The first phase involves the construction of a low-rise commercial building in the Nishi 2-chome area, which encompasses a route bus terminal and various commercial facilities, with an expected completion in fiscal year 2030. Subsequently, the Nishi 1-chome area will house a high-rise building featuring hotels and office spaces, which is now targeted for completion in fiscal year 2034. Originally, both structures were slated for simultaneous completion by fiscal year 2028.
Tsumekane noted that the plans to construct the high-rise have scaled down from the initial vision of making it the tallest building in Hokkaido. "The height will be reduced from the initial plan," he highlighted, emphasizing how economic factors have forced a reassessment of the project's feasibility and scope.
The redevelopment is intricately linked to the anticipated extension of the Hokkaido Shinkansen to Sapporo, set to be operational by the end of fiscal year 2030. This rail extension aims to enhance connectivity and stimulate further economic growth in the region.
Initially, the estimated cost for the entire project was about 250 billion yen. However, escalating construction costs due to rising material prices and labor shortages have inflated this figure to approximately 370 billion yen. Tsumekane stated, "Currently, given the market conditions, it is unavoidable for the total construction cost to exceed the initial estimate of about 170 billion yen." These rising costs reflect broader economic pressures that are impacting infrastructure projects across the nation.
The low-rise commercial facility will be constructed on the former site of the Esta department store, which operated until 2023. The new facility will have a total floor area of approximately 90,000 square meters, comprising ten above-ground floors and two underground levels, and is poised to foster both retail and community engagement.
Demolition work for the Esta structure is slated to commence in the fall of 2025, with actual construction expected to kick off in fiscal year 2027. In order to enhance the project, a bus terminal will adorn the first floor of the low-rise building, adapting to shifting transportation needs.
JR Hokkaido has also indicated a shift in planning for bus services; initially, the low-rise structure was intended for route buses, while the tower was meant for intercity buses. However, plans are underway to centralize bus operations at the new facility to improve accessibility and convenience.
In a related announcement, JR Hokkaido has postponed the launch of new sightseeing trains set for April and June 2025, namely the 'Red Star' and 'Blue Star', citing delays in vehicle repairs. Meanwhile, the 'Nolocco', which was expected to be discontinued in 2025, will continue its operations into 2026.
The redevelopment plan will see the Sapporo landscape evolve, aiming to create a vibrant hub that caters to residents and visitors alike, revitalizing the area around the station to reflect modern urban living.
JR Hokkaido's commitment to revitalizing Sapporo's central area is not just a construction venture but a significant boost to the local economy. By adapting to changing market conditions and urban needs, JR Hokkaido is striving to create a balanced and sustainable future for Sapporo.
With plans being finalized by fiscal year 2025, the project symbolizes a new chapter in Sapporo's growth as a key hub in Hokkaido, bolstering its position as a prime destination for commerce, hospitality, and transport.
