The continued growth of visitors to Niseko is also fueling the demand for land. What started out as Australians looking for a affordable summer ski holiday in an exotic location with great snow and no jet lag has now spread to every expat and powder junkie in Asia. While Australians still make up the bulk of skiers and snowboarders (indeed, their numbers doubled this season as compared to last) they can no longer claim dominance, as alpine enthusiasts from Hong Kong, Singapore, Taiwan, and a sizable expat community in Tokyo, have all followed suit.

This increase in tourism has placed huge demands on local infrastructure, in particular accommodation. This has ignited a building frenzy, with nearly every corner of every block in Niseko-Hirafu under construction from spring all the way until the following season starts.

Combined with very attractive land prices, in particular compared to Australia, New Zealand, the US, or Canada, many foreign owned real estate and property management companies have rushed into Niseko to help manage the process of buying, selling, and owning Niseko property so that now foreigners can easily purchase and maintain their Niseko investment.

What started out as an “upper-middle-class” phenomenon for “those-in-the-know” has now attracted the corporate titans who usually only invest sizable sums based on thorough research and an expectation of a reasonable ROI.

Some recent acquisitions and development activity serves to back this up: Hilton Hotels, the international resort chain, will be managing the Higashiyama Prince Hotel for American Citigroup Principal Investments. Hanazono Ski Resort was acquired by Pacific Century Premium Developments, a Hong Kong company owned by billionaire Richard Li. Not to be outdone, Australian-based Citimark has thrown their hat into the ring by committing to the development of Niseko-Moiwa, a 15 to 20 minute drive from Niseko-Hirafu where they look to be planning a private western-style resort.

Now that we’ve provided a little background, here’s the kicker: The collapse of the property bubble in the 80’s caused Japan’s real estate market to drop by between 60-90%, and most areas of Japan, including believe it or not most of Niseko, have not recovered their former value. The shrinking population also contributes to depressed and undervalued property. For example, in Kutchan, the town that hosts Hanazono and Grand-Hirafu, a 4-bedroom home can still be had for USD 60,000. Also, at the risk of stereo-typing, the Japanese tend to be more risk averse, and many remember being burned by the bubble, which has kept more than few locals from jumping into what must to foreigners seem like a sure thing. When it comes to the world’s finest powder snow, the discrepancies in value placed on it by the locals and by the influx of foreigners cannot be understated, even now. Now that it is easier for foreigners to borrow in Japanese yen (thanks to Japanese bank loosening up their requirements) at laughably low Japanese interest rates, the obstacles to investing in Niseko real estate all seem to have crumbled away, and owning a piece of Niseko property has never been easier.

NisekoProperty.net’s educated guess of an October 15th snow sighting turned out to be too conservative. On the morning of the 10th day of the 10th month, the clouds that often shroud majestic Makkarinupuri (the Ainu name for Mt. Youtei), gave way to reveal a light dusting of crystal white. It is only a matter of time before snow descends on Niseko, marking the beginning of another crazy season.

The POW Gods are smiling this year. We’ll see you on the slopes!

Original Article: Bloomberg

Tours complete with 360 degree navigable interface and floor plans. People will be able to see every corner of the property from every corner of the property.

Buying property in Niseko or booking a ski holiday in Niseko can be very frustrating, people can’t just stop by Japan on their way home from work, check a place out, and be home in time for dinner. People often have to rely on word-of-mouth or the internet. The net also proves to be more of a jungle to be haphazardly explored than an able assistant that helps you select a property.

NisekoVirtualTours.com has the potential to be an extraordinarily powerful and informative guide that walks you through the village and lets you explore at a leisurely pace.

Richard Li’s PCCW (Pacific Century CyberWorks Limited) has apparently purchased a substantial stake of and most likely a controlling interest in the Hanazono ski area neighboring Niseko-Hirafu. Harmony was probably left with a small equity interest so that PCCW can get help developing the resort.

Richard Li is the youngest son of Hong Kong billionaire Li Ka Shing, and his PCCW has recently made some very profitable real estate sales on the back of some controversial purchases in the Tokyo area and is awash with cash… and it seems like he’s found a really good place to put some of it.

A recent drive through the Hanazono area revealed real estate signs by the dozen tacked to trees on the undeveloped land that hugs every curve and corner. As a planned resort on a grand scale, Hanazono has a clean slate, and it is less likely to be burdened by the lack of foresight and infrastructure that many of the investors and developers in Niseko-Hirafu have to deal with.

An announcement verifying the content of this article is scheduled to be made over the next month.

The entrance to Izumi-Kyo II is marked by the area management center, Restaurant Maru, and the Swiss-German styled Graubunden (well known for its sandwiches and cake).

Dotted with cabins and cottages, Izumi-Kyo is a managed community, complete with an organization that requires property owners to pay dues, keep their yards neat, and take turns making sure people observe some of the world’s strictest trash separation rules (there are literally scores of categories to divide your garbage into).

Izumi-Kyo has long been more popular in summer with domestic tourists looking for a slice of nature faw away from the big city, and there is no escaping the large groups from Sapporo and elsewhere sitting around a BBQ and lighting off small, safe, and mildly entertaining fireworks. Other popular summer activities in Izumi-Kyo include Fishing, Archery, and Tennis.

Until recently Imuzi-Kyo had missed out on the large-scale development and constant construction occurring in Hirafu, closer to the lifts. But Izumi-kyo is but a 3 minute drive from the lifts, and the boom has finally spilled from Hirafu into Izumi-Kyo in a big way. Construction surrounds this correspondent, waking him daily at 7:55am.

One large project is the two 3-floor townhouse buildings taking shape across from Okanda Rental Cottages: Shiki and Koyuki. Each building will have 2 townhouses. The developer states that, “Shiki and Koyuki Townhouses offer luxuries and space in harmony with japanese design sensitivities”. Maybe so, however they tower over Okanda, across the street (pictured below).

These signs are omnipresent throughout Niseko-Hirafu and indicate that the project underway complies with all relevant local laws and has been checked by the proper authorities.

This is Shiki: progressing nicely. Interior work well under way.

This is Koyuki: Foundation laid, scaffolding erected, all systems “Go”.

The area to the right of the Shiki & Koyuki project. It has been cleared as well, presumably for more development.

You won’t find any information online about “Stolt Holdings Pty Ltd”, as on the sign, but rumor has it some well-to-do Australian accountants with experience in Niseko-development are behind this project… best of luck to them.

The question on everybody’s minds is: are properties in Izumi-kyo II viable as luxury rental properties? It is a 30-minute walk in the snow from the lifts, along a road with a curved section with no sidewalks, menacingly referred to as “Death Alley” by last year’s winter staff, who had the fortune of traversing that section of road daily on their ways to and from work.

Certainly Shiki & Koyuki would be amazing for long stays, provided a car rental was included in the package (again: Shiki & Koyuki are but a 3-minute drive from the lifts). An extraordinarily convenient shuttle bus runs through Izumi-kyo II, but skiers paying upwards of $500 nightly for quality accommodation can be very difficult to please, and foreign tourists have higher expectations of the transportation infrastructure than the local foreign community or Japanese visitors in general. The jury is out on rental income, but there is no doubt that these properties would be amazing year-round dwellings or vacation homes.

Increased Foreign Presence in Kutchan

冬のスキー客を中心に豪州など海外からの観光客の伸びが続く後志管内倶知安町で、外国人の存在感が一段と増している。昨年度に同町に建築の届け出があった建 物のオーナーのうち3分の1はスキー場周辺地区に投資する外国人。観光・飲食関連の雇用も拡大。倶知安地区の有効求人倍率は道内の他地区を尻目に、 14年ぶりに1倍を超えた。

The presence of winter ski tourists from Australia and other countries continues to increase. Fully 1/3 of the new building permit applications were filed by foreigners, concentrated primarily in the ski district on the outskirts of town (Hirafu). Employment also continues to grow in the food & drink and tourism-related sectors. The number of jobs in Kutchan has increased for the first time in 14 years.

倶知安町が昨年度に受け付けた建築確認申請122件の中でスキー場周辺は61件。うち豪州資本など外国人によるコンドミニアム（分譲マンション）などが41件を占めた（前年度は11件）。

Of the 122 new building applications in Kutchan last year, 61 were for properties in or near the ski areas. Of that number 41 were condominiums and like developments primarily funded by Australian investors, compared to 11 the previous year.

これらの建物が2007年度に入って次々と完成。昨年12月時点で町内のコンドミニアム数は41棟だったが、商工観光課では「今年度に80棟にはなる」とみている。

Those 41 should be completed in 2007, but according to Kutchan’s Business, Industry, and Sightseeing Department that number may be closer to 80 by the end of the year.

昨年度のスキー場周辺地区における外国人の延べ宿泊客数は約9万1400人と前年度より20％増。こうした”特需”が周辺地域を含め新たな雇用も生み出している。

The total number of “bed-nights” (a one-week stay for one person would be 7 bed-nights) last season numbered 91,400, an increase of 20% over the previous year. This has fueled explosive demand for accommodation and has helped bring about the attendant increase in employment.

The Setsumon is slated to have 10 fully furnished luxury apartments. With this village location you can’t really go wrong. On the main road leading up from the Seico Mart. You could probably ski right down the hill to your apartment if you were of a mind to ignore all of the mammoth signs lining the main street instructing you not to do so.

Like with all upper village properties close on this side of the village, each morning you’ll walk downhill to the Ace Family Pair Lift which whisks you up to the Ace Quad Lift near the Alpen Hotel. Then when you’re done skiing you just ski down to the Ace Quad again and walk down to your accommodation. No uphill trekking.

Here’s some raw data we came across on the NakayamaGumi website: Plottage 599.4 m² (181.319 Tsubo), Building Area 233.87 m² (72.258 Tsubo), Deferred floor space 1523.1 m² (460.738 Tsubo). Project will be 6 stories with a basement. First floor to include commercial space. Nakayama is also the head contractor for the Freshwater project taking shape near the base of the road that leads to the Niseko-Hirafu Gondola.

There are several schools of thought, that generally coalesce around an optimistic: “The profit-taking has occurred, development is underway. It is no longer a high-return investment, but a lifestyle choice that will retain its value while providing respectable returns.” So says the man on the street.

Time will tell. 80% of the property in central Niseko-Hirafu has been sold at least once in the last few years. We forget exactly how many blocks did not have title changes during that time, but they were the exception, not the norm.

Land prices have indeed stopped appreciating, so the emphasis has moved onto developing the acquired properties. This continues unabated. Condominiums and homes throughout Niseko are generally selling at AUD $400,000 and up, with some high profile properties in the “upper village” fetching up to and over $1,000,000.

Most of the local Japanese are skeptical as they have seen this before, during the bubble era. People flocked to Niseko with bubble cash to play golf and tennis in the summer and ski in the winter. Once the bubble popped, so did Niseko’s property market. Some claim that prices now have not even reached the peak bubble prices, and there is some concern that another “bubble”, be it Aussie or otherwise, could jeopardize the gains made here.

Well, we don’t think what we’ve witnessed here is a bubble so to speak. What we witnessed is something amazing that only happens when different groups (in this case Japanese people and Australian skiers) value things differently. The Aussies who arrived here realized that marketed appropriately, to the right customers (Aussie, Kiwi, and Asia-Expat ski bums) they were sitting on a gold mine.

Although prices have rocketed through the roof, an amazing thing in a country that has been in an economic funk for the better part of two decades, there is still the possibility that prices will go higher. Considering what it costs to buy a place in Vail, you could even call it likely, particularly if the infrastructure in Niseko catches up with the snow.

Our advice is still… BUY. Maybe you shouldn’t expect to double your money… but you definitely should expect to experience the world’s deepest, finest, most consistent powder snow. See you on the slopes!

That is Miharashi (Me-Hah-Rah-She). We’ve heard it pronounced comically by the winter influx of powder junkies… “We’re staying at the Maharaji, mate!” Miharashi means “A Beautiful View” in Japanese, and is also the name of one of the most popular tree runs on the mountain.

Miharashi is located in the center of the village next to Mina Mina. It is a short walk from shops, bars, and restaurants. There are three 2 bedroom apartments on the first floor, and three two floor 3 bedroom apartments on the upper floors. There is also a shared basement with a laundry room and drying facilities.

It was developed by the same firm that developed First Tracks, Powder Tracks, and Youtei Tracks. Completed in 2005 with occpancy rates in winter hovering around 90%. The return on investment has been substantial, as these were completed while the Hirafu property market was still on its rapid 3 year surge.