Until recently, most of the local real estate focus has been on the small area of Hirafu. However, big plans are in the wings and many buyers are still unaware of the huge investment potential that lies in surrounding areas.
Individual investors and development companies alike are actively searching outside Hirafu in an effort to get more value for their yen. The reason for this digression can largely be attributed to the soaring value of Hirafu real estate over the past few years. Certain land areas in the village have enjoyed upwards of a 600% increase over the last five years* – great for early investors, not-so-great for those wishing to obtain their slice of Niseko in 2008.
Promising future growth areas can best be identified by acquisitions in the nearby ski resorts this year: Niseko Moiwa Resort by Zephyr; Nihon Harmony Resorts and subsequently the Hanazono resort area by Pacific Century Premium Developments (PCPD); and the Higashiyama Prince Hotel management being taken on by the Hilton Hotel chain.
In what is a first for the region, Niseko Moiwa will be a master-planned ski resort community. Australian property group Citimark, together with Japanese development company Fox, plan to develop a ski-in, ski-out neighbourhood over the next three to five years. It will include holiday apartments, premium homes, forest condominiums and a retail precinct, with plans for access and connection to the nearby Annupuri ski runs. The first stages of this extensive development are currently a fraction of the price of comparable Hirafu developments.
The essence of this master-planned concept is in contrast to the eclectic style of the Hirafu area. While the boom that the village has experienced in recent years has been fantastic for both investors and local businesses, the lack of design guidelines in the Kutchan building code has resulted in an eclectic mix of styles. Although this certainly adds to the charm of Hirafu, the long term plans being brought to the table by developers starting from ground zero, offer the opportunity for buyers to invest with knowledge of the future direction of the area.
At the other end of the property spectrum, Annupuri Village Chalets represent a totally different development style to that of Hirafu, Moiwa and Higashiyama. This emerging community currently consists of half a dozen luxuriously expansive alpine-style houses. Cafes, pensions and restaurants are also within minutes from the Annupuri gondola in this developing region. To give a comparative indication of cost, for the price of a new condominium/apartment or townhouse in Hirafu, a buyer could purchase a fully-furnished alpine home on a sizeable chunk of land in Annupuri Village – which is only ten minutes drive from Hirafu.
In the Hanazono area, speculation and anticipation for future development plans continue since its acquisition earlier this year. This region is already showing the same promising investment potential as Hirafu, with the value of land in certain areas nearly doubling within this year alone*. At the time of the acquisition, PCPD informed the public that their specific plans for development would be revealed in early 2008.
While the investment potential in the busy streets of Hirafu is obviously still plentiful, this is just the beginning for Niseko. Take the opportunity to investigate the investment potential in nearby areas before prices reflect that of their Hirafu neighbour.
*Figures Niseko Real Estate.
– Prue Tilley
Marketing manager for Niseko Real Estate