Niseko Market Update, What's New? Niseko Market Update, What's New?

Niseko Market Update, What's New?

LIFESTYLE

Niseko Market Update, What's New?

Emilia Lopez - writing for The Pavilions Ginto
Emilia Lopez
09 May 2018

Paul Yutaka Morris, Real Estate Sales Consultant at Hokkaido Tracks Resort Properties, gives his views on the property market in Niseko, with additional contributions from Bill Barnett, Managing Director of C9 Hotelworks.

 

Niseko is a destination with a huge amount of potential. It is already recognised as the best ski resort in Asia, but this is only the beginning. As levels of affluence continue to rise across Asia, demand for world-class destinations will also increase, and Niseko is in a prime position to cater for this market. Other established ski resorts took decades to develop so Niseko is playing catch-up.

The top three buyer markets are, in order, Hong Kong, Singapore and Australia. However we expect that mainland China will emerge strongly in the next few years, and will likely leapfrog the Australian market. Buyers from across Southeast Asia are also active, including Thailand, Malaysia, Indonesia and the Philippines.

Prime plots of land in desirable destinations are always in strong demand, and for many Asian city-dwellers the ability to retreat to nature is very appealing. New buyers looking for a rental return should expect a three percent net yield. The increase in land values is where most investors make money, and it is expected that these will double again within the next couple of years.

The summer in Niseko also appeals to up-market Asians seeking fresh air and space to relax. The spring and fall will are usually shoulder seasons, but Niseko will eventually become a year-round destination. Most private investors only want a personal lifestyle investment, but hotel developers need to ensure strong financial returns work so they will develop strategies to attract tourists throughout the green season.

The destination probably won’t reach its full potential until the mid-to-late 2020s. Sapporo is bidding to host the Winter Olympics in 2026 or 2030, and it has already been decided that the Niseko Village area will host the alpine events, so this will provide a major boost for the area.

Looking forward, many opportunities lie ahead for Niseko. Accessibility will become better still with the launch of the new Shinkansen bullet train between Tokyo and Sapporo. This is expected to be ready by 2030, or even earlier if Sapporo wins the Winter Olympics. A new highway with an interchange near Niseko is also being developed, which will significantly reduce the driving time from Sapporo’s New Chitose Airport.

Bill Barnett of C9 Hotelworks has lots more data on the Niseko property market.

CLICK HERE to the latest market research report.

Niseko Market Update

RECENT POSTS
All Villa Resort Announcement - The Pavilions Ginto
ART
LIFESTYLE
All Villa Resort Announcement
The Pavilions Niseko announces final plans for the all-villa resort & enhanced resort facilities to break ground this autumn.
Emilia Lopez - writing for The Pavilions Ginto
Emilia Lopez
2019-07-18
Ginto Community Growing - The Pavilions Ginto
ART
LIFESTYLE
Ginto Community Growing
Three new Ginto Villas have broken ground this summer, including a stunning three-storey nine-bedroom en-suite 800m² residence.  Read why this Owner selected The Ginto Residences.  
Emilia Lopez - writing for The Pavilions Ginto
Emilia Lopez
2019-07-18