WHILE developers and investors the world over fought to stay afloat this year, Niseko managed to defy the trend.
This year saw new benchmarks in luxury apartments and private residences completed.
Several large, upper-village development sites were acquired, and a number of significant commercial properties changed hands.
The global financial crisis was clearly the single largest factor this year, but while funds may have become harder to access, this had an unexpected positive effect.
The global downturn forced investors to step back from the heady boom mentality that preceded it and re-examine their long-term strategies.
Managing director of Niseko Property Ruskin McLennan said: “The GFC obviously had a profound effect, but it may have saved Niseko from over-development.”
Buyers and financiers alike are now performing more rigorous due diligence before proceeding, and this can only benefit the entire village as an unsuccessful development hurts everyone.
Some owners, perhaps under pressure from investments elsewhere, accepted prices unthinkable just a year or two ago in the knowledge that the strong yen would yield foreign exchange profits even where the property transaction had lost.
For those in a position to purchase, some very good deals were available and a number of significant transactions were completed.
As if to highlight the evolution of Niseko’s investor profile, three large upper village sites sold were purchased by Asian developers. The centrally located Lodge Ronde also changed hands, as did a number of commercial properties including Sansou and Suzuran in the Upper Village and Izumikyo’s Snowgum Lodge.
Hokkaido Tracks completed several commercial and residential sales including two blocks in their Escarpment Estate at the foot of the Lower Village.
Capella Niseko has finished the year strongly, with launches in Singapore and Hong Kong securing a number of sales of both its freestanding residences and apartments.
Although not released to the market yet, Hanazono has revealed its plans for a four-season resort of two luxury hotels and a number of condominiums over the next 10 years.
Looking forward, Nisade’s chairman Jonathan Martin said: “Niseko’s foundation is solid and will only get stronger. Rental numbers are up this year which just shows the strengths of this area, and I know that our product and that of every other developer in the area is contributing to those strengths.”
“We will see more investment in higher-end luxury apartments and houses,” McLennan adds, “with more people moving to Niseko looking for a change of lifestyle.”
There’s no doubt that the market slowed as investors found funds harder to access, but the region’s fundamentals remain sound.
Niseko is still up there with the best snow resorts on this side of the globe, prices are realistic compared with similar high-end international resorts, and Asia continues to be the world’s go-ahead region financially.
In short, Niseko’s continuing inflow of investment and development – especially given the global financial crisis – is a resounding vote of confidence in the area, and looks set to continue.