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No, these are not hobbit homes but modular kit homes made from 7 inch thick styrofoam. The Japan Dome House Co. Ltd makes these homes with a cluster of them already at the Aso Farm Land resort village in Kyushu. The 480 domes there are used there as lodging, recreational facilities and shops.
These modern igloos are assembled from sections of expanded polystyrene foam and as such will not rot, rust and will be termite free. The dome house will also be well insulated and with flame retardant treated walls, fireproof too. It is earthquake proof and gale resistant as its shape reduces wind resistance.
As you can see from the video, set-up of the 175 lb or 80 kg house is easy and quick. Just like regular houses, the exterior can then be customed design like the Mushroom Karaoke Room at Suijin-no-mori hot spring (Oita prefecture). The most attractive feature of these houses is the price - starting from under $30,000 for just the shell.
Some other suggested uses for the styrofoam domes include guest houses, hotel rooms, restaurants, freezer rooms, or even as hog farms. Shown here are pictures of a styrofoam dome bar and two ladies enjoying a steam room. Two or more of the houses can also be linked together.