The new August 2021 Niseko property and hotel market review has just been released by C9 Hotelworks.
Niseko remains in demand
The alpine resort of Niseko in the northern region of Japan, Hokkaido, has been hit hard by its reliance on international tourists however it has remained in demand with real-estate developers and international hotel operators who see the bigger, long term picture , looking past this pandemic.
Increased brand investment
There has been strong overseas investment from the likes of Six Senses / Wealth Management Group, Moxy Hotel / YTL Corporation and Capella / Shenning Investments along with new developments such as New World La Plume Niseko Resort (Rosewood Group) and Matie Niseko both recently launched this summer with the Niseko property market hitting a new high with project/off plan transactions hitting USD2.69 billion.
Demand for land acquisitions
C9 Hotelworks research showed that although the worldwide economy remains uncertain they are seeing strong demand for land acquisitions of residential plots from domestic and international developers in Niseko although many have reported cancellations of inspection visits from offshore holiday home buyers, and speculative investors, they have seen that the high-end luxury penthouse and top of the market villa/chalet are being scooped up by bargain hunters from buyers/investors who are very familiar with the Niseko ski market.
Land prices continue to rise
Commercial and retail rentals have been hit hard from the decrease in international tourists, although the domestic market has increased. However, based on the Ministry of Land, Infrastructure, Transport and Tourism in 2021 the average land price in Kutchan has continued to rise 25% year-on-year, making it the highest growth rate in Japan.
TRENDS
11% growth rate of apartments compared to 2020 to USD17,056 per m2
USD2.69 billion in real estate transactions for 2021, a new high!
25% y-o-y land price increase - highest in Japan
Building costs increasing y-o-y causes holiday homes to increase by 5% per year - USD1-2 million price range per chalet/house
Some choice discounts of 5-10% from completed projects - links in with the cost of land and build increases
FORWARD OUTLOOK
Strong confidence in Niseko's mid to long term future from branded hotel operators and investors with continued oversea investment.
COVID-19 pandemic has delayed the New Chitose Airports privatisation
Hospitality sector set for an influx of hotel brands such as Six Senses, Moxy, Aman, Capella and New World (Rosewood Group)
Sapporo City is in line as a possible candidate for the Olympic Winter Games in 2030 with Niseko Village (where SnowDog Village is located) as the venue for the alpine event.
Japanese tourism white paper dedicated to hitting 60m tourists by 2030.
To download and read C9 Hotelworks Niseko Property Review 2021 click below.
Buying his first house at the age of 18 while a successful professional jockey in Europe, Jo developed an enduring passion for property that has blossomed over the last 18 years that he has been based in Hong Kong. From there he has worked on the concept, positioning and sales for some of the region’s most iconic and highly rated developments and resorts.
Jo Lodder
Founding Partner
Join our newsletter here to get the latest offers and information!