Greater Niseko welcomes a new property cycle as demand for condos drops
C9 Hotelworks also uncovered “the emergence of a growing number of international hotel brands” in the area
According to the latest Niseko, Japan Property Market Review by C9 Hotelworks, Greater Niseko is gearing up to welcome a new property cycle as the demand for condominiums has started to decline.
For the past five years, the industry’s gold standard revolved in Hirafu, but the rapidly appreciating prices, shortage of sites and rising amount of incoming supply have prompted developers to consider neighbouring ski destinations, including Annupuri, Hanazono, Higashiyama – Niseko Village and Moiwa, particularly because of the low land values that come with these areas.
Meanwhile, the transactions for residential land, as well as land and house projects have started to flourish in Hanacreek, Hanaridge and Odin Hills.
The report also discovered that a growing number of international hotel brands have begun to pop up, including Residences Hanazono and Park Hyatt Hotel, as well as upcoming developments by Ritz-Carlton and Aman.
As for the market outlook, C9 Hotelworks expects the tourism fundamentals to play a crucial role as the sector grows, considering the broader market focus on resort-grade projects and escalating shift in rental yields.
More: Global real estate investors seek safe havens amid pandemic, rediscovers Japan
The increase in regional direct flights to Sapporo’s New Chitose airport before the pandemic is an essential measure to gauge the future of real estate there, but the possible route disruptions to Hong Kong, Thailand and other Asian gateways could have a huge impact since these destinations have generated most of the demand for Niseko’s property sector in the past.
The consultancy service explained that “a retraction in the region’s airline industry will mute many leisure-driven destinations.”
Nevertheless, they foresee a positive future for Niseko’s real estate market, seeing as the minimal amount of buyer debt and “discretionary nature of property holdings” will help maintain the market values.
Still, the expensive cost of developing projects there could prevent these investors from building year-round resorts and massive integrated developments, which is what the sector needs to evolve.
In conclusion, “Niseko has to create a more balanced support infrastructure and the time to do that is now.” To download the full report, visit c9hotelworks.com/
Know of any award-worthy real estate projects in the Greater Niseko area? Nominate them for the Asia Property Awards (Greater Niseko) on or before 13 September 2020! Simply visit asiapropertyawards.com/en/award/asia-property-awards-greater-niseko/ for more details.
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