Buy a ski property in Niseko, Japan.
What is Niseko?
Niseko is one of Japan’s top international ski resorts. It is comprised of several villages which are located around the Annupuri mountain. These villages are: – Hirafu: this is for now the largest Niseko development area with eclectic buildings, restaurants and bars.
– Hanazono: Pacific Century Property Development (Richard Lee) bought part of the mountain area and has announced it will develop a village-style resort, including a five-star hotel and residences like the Park Hyatt;
– Niseko Village: The Hilton Hotel (purchased from Citibank by the YTL Group from Malaysia during the last GFC). This is currently the best emerging play in Niseko. While Hirafu is now getting overbuilt, Niseko Village is still green, while the mountain owner YTL is investing heavily in its infrastructure with a new commercial centre, new lifts and Gondolas. The Ritz Carlton has chosen this village to open a luxury hotel by 2020.
– Annupuri: Is still largely undeveloped, with individual luxury houses.
– Moiwa: a small resort which is not yet connected to the other resorts.
Why invest in Niseko?
First, it’s a lifestyle investment:
With over 15 meters of snow per year, Niseko is the 2nd snowiest ski resort on the planet (Forbes 2007). Often called the Whistler or Aspen of Asia, the area has experienced a continuous, strong increase in the number of visitors over the past ten years. With a pristine and exceptional natural environment, Niseko is growing into a year-round holiday retreat with activities for both winter (ski/snowboard) and summer (golf, hiking, rafting, fly fishing, ocean kayaking, mountain biking, tennis, paintball). Its geographical location (a mere 2 hours’ drive away from Sapporo’s Chitose international airport), facilities and infrastructure makes it an ideal destination for families with children and bachelors alike. Many festivals and events are now organized to attract visitors all year long: e.g. Kutchan Jazz festival, Niseko golf week, Niseko bicycle Week.
It’s also a financial investment:
Niseko has grown to become a prime international ski destination with visitors from Hong Kong, Singapore, Thailand, but also France, the UK and the USA, and the demand for high quality accommodation and facilities is strong. Japan’s stable financial and legal environment (freehold ownership) remains top-rated among fund managers and institutional investors. Niseko is also the fastest appreciating real estate market in Japan. In the next few years, the area is projected to grow further as an Asian destination with some analysts predicting it will become the equivalent of Phuket or Bali for the winter. The fast Shinkansen bullet train is scheduled to link Tokyo to Niseko by the next decade. This will consolidate Niseko’s position as the top ski resort in Japan.
What returns can I expect?
Capital gains aside, and based on historical data as well as current level of bookings in the village, a ski property should be able to expect 80-90 days of letting per year. The number of rental days is widely expected to rise with the increase of summer activities and visitors.
– Reasonable prices: Property prices are still well below comparable resorts in North America or Europe.
– Scarcity: It is an investment opportunity, as prime land with high-quality properties in Niseko is very scarce.
SnowDog Niseko:
Perfectly located minutes from the Niseko Village ski lift, and with rentals managed by SkiJapan, Snow Dog is a 26 apartment complex, well situated to take advantage of Niseko’s continuously growing popularity.