Why Invest in Niseko?
2023.03.30
In addition to Niseko offering an incredible lifestyle investment choice for all ages, it has proven itself to be a consistent market performer.
Let’s tackle the big question first.
In addition to Niseko offering an incredible lifestyle investment choice for all ages, it has more importantly proven itself to be an outstanding and consistent market performer over the past decade. Weathering the storms of the ‘07-‘08 GFC and 2011 tsunami that ravaged the Eastern coast of Japan, Niseko emerged from these difficult times not merely unscathed, but with such strength and force that it is now widely regarded as a first-class global ski destination for the world’s elite.
With Niseko now brushing shoulders with the big-boys of Whistler, Vale, Chamonix and Val D’Isere, and with a practically untapped summer season offering a plethora of championship golf courses within easy access, delicious fresh produce, stunning scenery, nutrient-rich onsens, and unmatched air quality in the Asian region. Hokkaido’s Niseko, and surrounding areas, are increasing in popularity each year and are cementing themselves as a truly international force in global tourism.
Demand for high quality accommodation and facilities continues to drive the market, especially in the luxury segment. Winter continues to be strong and the summer season is showing encouraging growth. As Niseko moves from its well-established reputation of Asia’s premier winter-wonderland and into the year-round destination of activities, wellness and culinary delights, the time to enter the Niseko story has never been better.
The benefits of 100% freehold ownership and the lack of restrictions on foreign buyers, elevates Niseko from a mere lifestyle investment to a very sound, financial investment, of which many astute investors in the Asian region and beyond have taken advantage of. Niseko investments are now found in the portfolios of some of the largest and most recognisable property investment firms in the world.
Niseko continues to remain the fastest appreciating real estate market in Japan and the area is showing no signs of slowing down its growth-trajectory as an Asian destination.
What are the expected returns?
Returns differ across property category and vary according to specific location. Historically, bookings in Hirafu Village generally and Nisade Real Estate properties specifically, have consistently experienced 90-120 days of letting per year.
With the summer season growing each year in popularity and with feet on the ground increasing year-on-year, the number of nights booked is set to increase and enhance returns.
Although Niseko has made incredible progress in terms of international reach and reputation, property prices are still well below comparable resorts in both North America and Europe.
Average yearly returns in Niseko have typically ranged between circa 2.5-5.5% and indicators suggest this range remains an accurate forecast for the immediate future.
Major factors affecting returns include specific units’ size (number of beds) and location (access to ski lifts). Higher returns will be realised if the property is available to the rental market over peak periods including Christmas and Chinese New Year