REAL ESTATE NEWS
By Thomas Shomaker
In Upper Hirafu, just minutes from the slopes, two adjacent properties happen to be on the market at the same time; a rare chance for commercial and/or residential development.
Jess Ripper, Niseko Real Estate sales director, said “there is an opportunity for an investor to do something very special”.
”Land, typically in Upper Hirafu doesn’t stay on the market for too long
Jess RipperNiseko Real Estate Sales Director
Pension Koropokkuru with red boundary marker, Pension Create right
Both sites are available for immediate lodge operation or staff accommodation while redevelopment plans evolve. And their premium locations near Hirafu’s main intersection affords a range of options.
From Pension Accommodations to Something New
The properties, which face each other across Sasayaki Avenue, are pensions, which Ripper said were the predominant type of accomodation for much of Niseko’s winter destination history.
“I guess you can just call them a Japanese BNB”, said Ripper. “They have the large communal bathing areas and they offer a meal.”
The Niseko market started to move away from pensions in the early 2000s when Australians began arriving and noticing opportunities to purchase land and redevelop properties.
“And it’s just obviously snowballed, no pun intended, since then”, said Ripper. “Things just kept getting more advanced with more facilities and amenities.”
The Properties in Upper Hirafu
The larger of the two properties is Lodge Koropokkuru, which has existed on its current location since 1973. Across the street is Pension Create, built in the late 1980s. Pension Create’s land also includes a popular Izakaya (a Japanese-style tapas and pub restaurant).
This is the heart of Upper Hirafu, with the A-Bu-Cha 2 Izakaya and Kamimura (a Michelin star French restaurant) within a couple blocks. A few-minutes walk away are the Hirafutei Prince Hotel onsen (a hot spring communal bathhouse), the Grand Hirafu ski runs and NAC Adventure Park, a forest obstacle course for the warmer months.
“They are completely separate circumstances and now are on the market by coincidence,” said Ripper. “I do see real potential as a combined residential condo hotel / commercial development”.
Pointing out that one of Koropokkuru’s three buildings was built in 2015, Ripper said that both properties are fine for immediate use. But he believes such use will be fleeting.
”Longer term play anybody who is looking to purchase one or both of these will be looking to redevelop the sites
Owners Understand the Value
Ripper’s opinion is that a developer would probably want to focus on an apartments and hotel component on the Koropokkuru side and commercial aspects on the Create side, “maybe with some beautiful penthouses on the upper floors.”
“The owners are holding quite firm on their pricing expectations,” said Ripper, who then referred to the anticipation – felt by many in Niseko – that once the borders finally fully reopen there will be a surge in interest.
“There’s really good potential for both properties to be redeveloped and operate as one,” said Ripper. “But it is quite a large project for somebody to take on so I think it will be a case of a little bit of patience while the market finds itself again.”
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