niseko alpine review >> dec 08

Welcome to Winter 2008. The team at NISADE wishes you and every one of your family all the best for the Christmas and New Year Period.

With the festive season upon us this months Niseko Alpine Review steers away from Nisade's typical analytical outlook with a special Chairman's edition.

That is the question right now. Investors today have an array of investment choices like never before. Opportunities abound for those with cash and as the global slow-down imbeds further into the hip pockets, assets will continue to be released at discount...so much choice!
..........................................................................
Limited Supply
The market is small, despite the rapid increase in building, volume is miniscule in relative terms. Within the market there is supply limitation on product, for example there is only 32 ski-in ski-out apartments in The Vale Niseko. With most sold, investors seeking prime Niseko locations do not have a lot of choice.
............................................................................
Long Term: the fundamental
Niseko’s long term fundamentals remain unchanged, it’s still the best & most consistent powder snow in the world. The mountain terrain is friendly to first time skiers yet challenging year after year to the pros. Also, the Japanese experience will always be a fascinating one.
............................................................................
Niseko “brand” Establishing Globally
We are seeing cars (Mazda MX-5), shoes (Lacoste) and international tourists (Guardian media in UK rating Niseko as top 10 destination) using and recognising Niseko as a brand. Familiarity will drive demand, word of mouth is still the key driver. Families will continue to travel in larger groups enjoying familiarity and social catch ups.
............................................................................
Scale of On-Ground Operators
Unless another ski resort attracts the scale and commitment of on-ground operators and developers such as Hokkaido Tracks, West Canada Homes and other early pioneers of development they will never achieve the market penetration. Remember these pioneers have been working hard here in Niseko for the last 6 years, they are not overnight success'.

back to top

NISADE is offering complimentary breakfasts for all subscribers to the Niseko Alpine Review this winter in Niseko. Fresh coffee and croissants will be available every Monday and Thursday morning from 7.30 – 9am at The Setsumon on Hirafu’s main street.

Construction Update

Niseko’s largest construction site The Vale Niseko powers on 8 days ahead of schedule.

Next week sees concrete pours on the outdoor heated pool, onsen, après terrace, restaurants and lobby areas.

With the last concrete pour scheduled for the 16th December the site will close down around the 24th December. That will bring the construction of the site up to level one and cap the site until recommencement in mid March 2009.

With the hardest part of the site now complete as we head into the typical floor cycles and out of the lower ground works, 2009 will see a consistent and concentrated effort to open the building on the 6th December 2009.

For photo gallery of site works and Niseko snow life see the The Vale Niseko Photo Gallery

............................................................................

Sales Update

The Resort Rooms are attracting a great deal of interest as people understand the quality, access to Niseko’s best in-house amenities and ski in ski out location of these properties.

With pricing from 19,500,000 they have a wide market appeal, especially with anticipated yields of over 5%.

For more information speak with Jonathan Martin on jonathan@nisade.com

back to top

Niseko’s best buy.

5% down, final payment not till 2010 in what could be Niseko’s most promising location.

See Niseko Taisetsu website or speak directly with Chris Chan on chris@nisade.com information.

back to top

Whilst recently in Hong Kong I could not help but marvel at the concentration of aspiration retailing, I have never seen so many branded hand-bag shops in the one city. Perhaps I only noticed as I, like so many, am trying to foresee the long term impact of the financial crisis. I have a strong belief that the end result for many will be a withdrawal back to the very core fundamentals of health and family.

It is my belief that globally we as individuals will be torn backwards and those great many aspirational wants, not needs, will be passed by. Do we really need that new watch, another handbag or the latest phone? 

However, what will not be compromised will be the family holiday, the chance to spend time together. Ask any adult/child and the single most dominant memory will be family holidays and those that are the strongest will be destinations to which the family returned year after year to the point where it almost became a second home. My memory was a beach paradise, Forster on the east coast of Australia. As kids the excitement and anticipation grew all year as we would leave the farm and spend two glorious weeks getting up to mischief in this seaside town. That later transposed to winter holidays in Thredbo.

To that end, I believe Niseko will be a long term beneficiary, we offer a compelling year round destination in one of the last few remaining safe havens globally. Mumbai, unfortunately, brings that home to roost on an even higher scale. With two young children it’s refreshing and invigorating to be somewhere where they can roam freely without the unspeakable worries inherent elsewhere. A child can easily holiday in winter outside of Mum and Dad’s controls, the village is safe and secure, and the kids will cherish the freedom and responsibility.

Interestingly the demographics of our winter guests warrant investigation. Surprising, the market is dominated by non-skiing or new-to-skiing guests. These people have either skied as a youth then focused on careers and family or they have never skied before. Niseko for these people is an amazing package; the terrain coupled with the phenomenal snow quality allows a rapid transgression to the ultimate winter experience, skiing powder snow. Every year we have new guests coming to experience that one facet of a ski holiday. 

That said, just being here in the falling snow captures the mystique and solitude we associate with a white Christmas, its an almost sublime experience of tranquility and beauty. 

Niseko is offering ever increasing options to the non-skiers with Japanese cooking classes, pottery, calligraphy, glass blowing not to mention snow mobiling, winter hiking and the ubiquitous onsens. As a family package it rates on every front.

The ocean focused seaside resorts that abound for example throughout Thailand, Bali, Seychelles and Vietnam will suffer as the supply options are 100’s of times of what is on offer in ski destinations in Asia. With too many options you almost lose the identity of the area.

Niseko is in its infancy, it will grow to be all things to all people. Come in winter for all the winter activities, come in summer and the offerings are various, pack the kids off rafting, play golf, enjoy a thrilling day out at the Rusutsu theme park, the wealth of lifestyle choices here just keeps growing stronger.

back to top

NISADE is proud to announce our partnership with Ironmonger Events Ltd, a Hong Kong based events management company, to host the first international corporate ski team challenge from March 4-7 in 2009.

Thanks to Niseko’s clockwork snowfall, we will be hosting the event with confidence in March during the spring skiing period.

For bookings email lisa@nisade.com  

back to top

The Hifaru Market

Likening the current market to jumping into arctic water when blood rushes from the extremities to the heart we see the wider Niseko market in the same situation with investment rapidly pulling back to the heart of the region. Today Niseko has only one heart, Hifaru. The slow-down is pulling investment back around the ski portals and infrastructure such as restaurants, bars, ski-shops etc. The core fundamental of location is back.

We at NISADE are already evidencing this as enquiry for The Vale is markedly up as people focus on location. The house and land package is, whilst a robust lifestyle investment, will now not be such a strong investment asset unless the house is centrally located so we do expect these sales to slow especially outside of key locations.

Niseko and in particular Hifaru are somewhat insulated for the following reasons:

1. Unleveraged market
Tthe bulk of transactions in the market are not geared. Some obviously have geared up using assets outside of Japan but this is a relatively small component. The effect is that there are few if any distressed sales. Had this market rupture occurred 12 months later the story would have been dramatically different due to higher levels of local gearing.

2. Currency
The dominant buyer profile over the last four years has been Australians who have enjoyed the benefit of a weaker yen. With the dramatic reversal in the last quarter the benefit to these owners has flipped and naturally many are looking to take advantage of this situation. See our article below regarding rates, we think this situation may be short lived.

3. Yields
Overall visitor numbers for this winter look to still be slightly up on last winter, a damn credible outcome in this environment. Few if any other JPY resorts will be able to claim that title and we doubt any in Nth America achieve that result. Occupation rates however will be lower due to additional supply this winter.  However in 2009 due to supply restrictions as new projects are delayed occupancy will once again tighten.  Pricing will remain the unknown but we expect it to stablise at current levels.

back to top

The National Australia Bank, (NAB) announced they are withdrawing from the market. This is a direct result of the global crisis and stems direct from head office in Australia, it is not a decision of Tokyo.

CBA are committed and continuing to write solid loan volumes. With the recent appointment of new divisional head to bolster the Tokyo team and a commitment to have on ground representation this winter they are well positioned to continue to drive their business and support buyers.

back to top

Specials at The Setsumon
centre village location | 1 min walk to ski run | next door ski hire & ski shop | 2 minute walk to onsen | Niseko's best views | Niseko’s best ski chic interior design.
............................................................................
Studio Deal
Buy 6 get 7th night free deal (January, February and March) on new bookings.
............................................................................
Chinese New Year Cancellation
Due to a late cancellation we have one 3 bed apartment available...this one will not last.
............................................................................
Limited Availability
There is limited availability for December and January for 2 bedroom apartments. Enquire now as these will fill quickly with last minute ski travellers.
............................................................................
The Vale Niseko Bookings 2009/2010
NISADE will be launching bookings soon. Stay tuned. As always our clientele will be first in the know.
............................................................................

Accommodation Bookings
email lisa@nisade.com
website Niseko Alpine Accommodation
+81 136 22 0038

back to top

Two Niseko office's conveniently located in central Hirafu ski village:

NISADE sales office located in The Setsumon building on main street Hirafu and;

NISADE development office opposite Seicomart.

JAPAN

Local call  0136 22 0038        
Outside Japan +81 136 22 0038        
Skype skype-nisade
Fax + 81 [0] 3 4496 4699
Sales information sales@nisade.com
Accommodation reservations@nisade.com

WWW.NISEKOALPINEDEVELOPMENTS.COM