niseko alpine review >> nov 08

The snow depth in Niseko is edging upwards, already one of the NISADE team has hiked the mountain and enjoyed fresh knee deep powder runs. Winter is upon us and we look forward to welcoming many of you back to Niseko. And to others, we look forward to introducing you to all that winter in Niseko has to offer across the slopes, the village and the hinterland.

As many of you are looking to invest in the area, this month we have included a brief “buyer’s guide” to build quality. Enjoy and see you soon. 

The Vale Niseko is well into construction, the piling, foundation and excavation is totally complete and now the building starts to rise.

The early snow will not slow the project and we will see the 2nd floor slab laid prior to closure this winter. This fabulously located property remains at the top of people’s interest which supports our belief that the ski-in ski-out location and quality will insulate occupancy rates, return on investment and long term capital growth.

The Vale Niseko also has an additional 15 hotel grade “resort rooms”, designed with all-season rentals in mind. These resort rooms, combined with a registered natural onsen, swimming pool and a top class restaurant opened all year around, provide the unique capability of targeting the summer domestic and East Asian travel market.    

There are a few remaining units for sale and despite the economic gloom encasing the world NISADE is pleased to report that whilst recently in Hong Kong we attracted several new buyers to the property. Just as in all markets globally we are seeing a flight to quality and The Vale Niseko certainly delivers beyond this front.

An up to the minute Niseko photo gallery of construction and the Niseko snow lifestyle is now live specifically designed for our Vale clientele.

For pricing, availability, returns and plans information contact Jonathan Martin on jonathan@nisade.com

Niseko Construction
Building can be difficult anywhere in the world, but few can imagine the additional burden of constructing in a cold climate with such heavy snow fall (being the 2nd snowiest ski resort in the world).

It amazes our development team that construction workers even endure such conditions when in Australia wet weather shut down is triggered on a single rain drop.

Hokkadio Builder Nakayama Gumi brings a high level of professionalism and dedication to The Vale Niseko project. This is the third project that NISADE has contracted Nakayama Gumi and we know that this is the right team. As the markets slow and the financial impact spreads one has to review credit risk on every front and our recent review of Nakayama Gumi certainly shows a company with a strong balance sheet and a legacy of surviving and then prospering post the bubble burst in the 80’s. The company’s size coupled with their experience will ensure our project The Vale Niseko is delivered on time.

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The NISADE business model is built around premium property; superior locations, unmatched finishes and ultimate functionality. These factors underwrite long term investment cash flows in both rental returns and capital gains.

The NISADE team is highly qualified with hands on experience, construction theory and construction management. Our job is to apply this experience to ensure buyers are confident of Niseko's best value / quality equation.

With that in mind we’d like to list a few key areas that a buyer needs to cross off their check lists in assessing a property beyond simply property location:
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Builder, Consultants, Architects and Developer
Do they have prior on ground experience? Have they built quality residential in cold weather climates?
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Design
Close scrutiny is required to understand flow, functionality, summer and winter use as it’s absolutely critical to long term rental success and capital growth. Has the harsh alpine environs been considered by an experienced cold weather Architect or is it done by an overseas Architect with minimal cold weather experience?
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Views
Have they been fully captured? Can they be built out in the future?
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Location
How is it in terms of noise, motor traffic, people movement, snow management?
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Operating costs
Are they fixed? Does design ensure efficiency? Cold climates are costly – has this been taken into consideration?
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External aesthetic
Will the building date? Does it have wide market appeal? Does it have an alpine look / feel? Does it fit into the Niseko / Japanese style?
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Materials
Are they robust or will they cause maintenance costs to rise?
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Finishes
Is the value / quality ratio strong? Are finishes of the highest quality at that price point? Inferior finishes will always damage resale and rental.
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Completion risk
Will the building be delivered on time (will it be ready for rental) and on budget (if it’s over budget do you know where corners will be cut)?
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Sales Contracts
Is specification detail substantive? Has it all been locked off prior to sale release?

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Whilst all projects experience differing quality levels, you will not see any of the following issues in The Vale Niseko:
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Balcony Finish
Is it just painted concrete? Does it have waterproofing issues? Is it slippery? How easily can the snow be removed, will a shovel damage the membrane?
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Living Space
Has the design team created functional space for alpine living and rentals? Will it survive guests or will it damage easily?
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Floor Finishes
What is the quality level? eg vinyl entries so often found in Niseko will wear and tear quickly. Will it date?  Is the quality of a level in line with the purchase price and promise?
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Fixtures and Fittings
Has the developer imported inferior goods from China or used quality products?
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Bathroom Tiles
For a luxury apartment has the developer used tiling that equates to the level of luxury promised in the purchaes price. Are they imported high quality tiles or have they utilised inferior subsidies?
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Bathtubs
Are they of a western size (which is a minimum of 1600mm) or are they just for show? Is there an overflow?
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Floor Wastes
Has the floor sufficient runoff? Is there a floor waste (drain) in all wet areas for example laundries?
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Bench Tops
Are they well made without joints as joints will deteriorate? Japanese builders are renown for zealous joint filing to hide poor workmanship particularly in stone/marble bench tops.
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Power Outlets
Are they functional and well located?
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Heating
Is it sustainably designed? Has all options been considered such as Electrical v Kerosene v Gas? As heating is a major outgoing cost in cold climates, are they placed for maximum efficiency?
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Contract Specifications
Is the level of detail of what you are buying specifically documented in the contract-for-sale?
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Even if you do not plan on personally spending a lot of time in the property, it will pay to consider the above points before making a purchase. In this market, not only buyers but guests too are becoming much more discerning in their taste.

Yields are becoming a more important factor to consider, as the global economy squeezes discretionary spending. The return on investment (ROI) has to become a dominant driving factor.

Fortunately, we should see operating costs stabilise if not drop slightly as heating costs fall. Niseko, in general, operates on a slightly cheaper total cost model than our North American and European competitors, so overall Niseko is well positioned in the current economic climate.

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NISADE recently hosted an exhibition in association with one of our clients Above + Beyond Resorts

The showing ran over three days and culminated in an auction of five Niseko properties.

On auction evening as we only had single parties interested on each property, we elected to deal one-on-one with buyers as opposed to an open auction.

Overall, the exhibition was a success having four parties close on properties over the three day period.

“Our objective was to let the market know that the Niseko story remains the same, the foundation of the area is unchanged and remains a solid investment opportunity even in this market. The auction message was to let the market know Niseko property is still selling and reawaken desire in this pre-season time.”
- Ginn Lai, Managing Director, Above + Beyond Resorts

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NISADE specials are now on for this season with March receiving a buy 5 nights get 6th free deal at The Setsumon.

For bookings contact:
email lias@nisade.com
website Niseko Alpine Accommodation
or call direct +81 136 22 0038.

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Rugby
Niseko’s hard-working, hard-playing locals joined forces to challenge teams from all over Hokkaido in the first annual “Niseko Touch Rugby 7’s” tournament in October. One of the local teams overpowered a team from Sapporo in the final to claim the inaugural “Power Pigs Niseko Rugby Club” Trophy.

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New Niseko Establishments
Two new establishments opened their doors for business in Niseko this October. NISADE would like to wish both Niseko Pizza and Paddy Mc Ginty’s Irish Pub a successful first season.

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WRC: Rally Hits Hokkaido
Hokkaido held the world’s attention this week as it staged the penultimate round of the 2008 World Rally Championship. The event was broadcast worldwide in 186 countries.

Aussie driver Chris Atkinson (photo) just missed out on a podium place finishing 4th in his Subaru. Many rally stages took place in southern Hokkaido, just down the road from Niseko.

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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
Postal Address Japan
170-5 Aza-Yamada Kutchan-Cho
Abuta-Gun Hokkaido Japan 〒044-0081

WWW.NISEKOALPINEDEVELOPMENTS.COM