We have remodeled The Vale Niseko website, with a photo web log and montages to coincide with a new release . If you are interested in one of these quality residences please contact Jonathan or Morag as we finalize the apartment allocations.

For sales information contact Morag Kerr on morag@nisade.com

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We’ve fielded a number of calls of late from people pondering the global economy and how it may impact their Niseko investment. When some of the world’s most respected brand names turn to dust it’s time for everyone to slow down and evaluate their positions – Niseko is not immune… Here’s a brief discussion on the impact the recent events may have on investing in Niseko property.

Sub-prime claims Merrill Lynch, Lehman Brothers, & Bear Stearns, AIG in trouble
We all know what has happened and t here are better brains and places to discuss th ose events . Our focus is on how they impact upon us as developers and you as investors.
For potential buyers there is only one question: Is Niseko still a good place to invest? We believe so, and here’s why:

• For decades Japan has ridden through
  a series of global challenges relatively undisturbed. There is much debate on why it defies market trends - but everyone agrees it does. Japan is firmly Asian, and the latest woes have impacted Asia far less than the US and Europe.
• Niseko is Asia’s powder playground . One billion people, all enjoying increasing disposable incomes, live within a 4 hour flight .
• There are many examples of profits made over the last few years in Niseko. While Niseko values rose off a very low base the capital growth is sustainable as the buyer demographic evolves with the increasing profile. 
• While regional growth may slow (as in any market) the P remium market is expected to show continued strength - as in countless examples worldwide. Location and quality will be the key drivers to future growth, the core fundamentals of the Nisade business model.
• Niseko is the hottest snow resort in the world right now. There are alternatives within Japan, but Niseko is THE international brand .
  

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• Because Niseko is well established it enjoys a degree of sustainability with infrastructure improv ing all the time.
  Big corporate dollars bring marketing campaigns which cast a global net, growing numbers and stabilize them against fluctuations. As an example, the international print and TV coverage obtained by the Niseko Hilton is fantastic.
• With tough times in the stock market, property is seen as a secure alternative. W e believe that Japanese real estate offers one of the more stable and secure markets. Amongst Japanese real estate Niseko has led the way for the last three years with astounding growth of 37.5% to July ‘07 & 40.9% to July ‘08. (Japanese Govt. figures)
• By global standards Niseko is still small and growth remains strong. If for any reason development were to suddenly cease, existing apartments would leap in value.
• Our long term view is for an appreciating Japanese Yen which will complement investment returns.
• Developer stability and Project Completion is now a question that buyers must ask of any developer.
• The arrival of lenders is re- stimulating the market, the low cost of funds is an attractive leverage .  With CBA and NAB offering robust finance options, the market is poised to accelerate again once the financial system stabilizes.
• Some buyers have decided not to proceed but we have been buoyed by how many proceeded in the knowledge that there can only ever be one The Vale Niseko. Some original investors are taking this new opportunity to expand their portfolio, while new buyers are emerging from our subscription database.

All international investment is exposed to currency fluctuations. Recent weeks have seen a drop in the cross rates against the JPY, and viewed over a longer term the SGD, HKD & AUD are relatively stable with the yen – due largely to the fact that they share many common influences. There are ways to hedge against currency fluctuations, (see Hedging) but when investing in different currencies there is the opportunity for either gains or losses, depending on exchange trends.

The heart of Niseko, Hirafu Village; came to international prominence some 5 years ago and prices have soared to meet the demands of an increasingly affluent foreign market.

World ski resorts such as Whistler enjoyed its boom and shortly after, the neighbouring towns of Squamish and Pemberton followed . In fact, given the original buy-in prices, some early Squamish developments out-stripped some more-celebrated Whistler competitors in cash-on-cash returns. The same was repeated in Jindabyne bordering the Australian snow resorts of Thredbo and Perisher. Development booms in the resort proper, followed soon after by a boom in the nearby service town. Chamonix… Aspen… the list goes on. And Niseko’s service town?... Kutchan.

Kutchan is the Niseko ski field’s regional, economic, transport hub. It is also the region’s culinary epicenter with over 40 restaurants, a Japanese nightlife district, schools, hospitals, shopping and immediate access to all of Niseko’s ski resorts.

Nisade announces a brand new entry-level Niseko investment and lifestyle opportunity to take advantage of the promising Kutchan market. Featuring layouts ranging from studios to 3 bedrooms, and all offering quality fittings & finishes, fully furnished ready to enjoy; take up of this limited release is expected to be quick. Prices start from US$140,000 and with a first stage offering to Nisade clientele only, now is the best time to secure in this emerging market.

For information speak to Chris Chan
Website -  www.nisekotaisetsu.com

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Booked out is the cry from the Hirafu village but dig further and it only applies to the peak season, Dec 24th to Jan 31st. Lucky ski revelers may still find openings but we suggest trying outside peak season to avoid disappointment. With Chinese New Year falling on the 26th January 2009 bookings are heavy until mid February this year…Late February and March and even early April are key to driving rental returns. Our message to guests who missed the peak period is that there are still excellent times to enjoy Niseko’s powder snow in March . You have a higher chance of skiing under a perfect blue sky and powder days are more common than other world resorts for that time of year.

For bookings contact
Niseko Alpine Accommodation
or call direct +81 136 22 0038.

Rental demand underpins property investment in Niseko. 2008 / 2009 winter numbers are up again on 2008 despite the increase in supply but we expect them to be on par with 2007 / 2008 due to the economic fallout leading up to Christmas.

But the real story for Nisade is our summer bookings, they have exceeded well beyond target in our first year. The decision was made to open and rent the building all summer unlike a number of other properties that elected to close. We are appointed to manage the Owners assets so we will do everything we can to increase their returns. Our forecast days were only 7 per apt but on average to the end of Sept we are already sitting on 26.2 days with several apts above 35 days.  With consistent marketing to the JPY domestic market we expect to improve again on this next summer.

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The push for Niseko to become a year round destination is underpinned by recent events organized, promoted and executed by the local businesses. Th ese greatly lifted visitor numbers throughout summer with September being capped with three international grade events as noted below. Put these i n your diary for 2009 - the weather is superb with warm days and cool nights.

1. Niseko Cycle Week
A hugely successful event in which
Niseko Cycle Week NISADE would like to thank the Commonwealth Bank of Australia for their major sponsorship of the week. The event attracted nearly 200 entrants across with events ranging from downhill MTB on Niseko’s supercourse to road rides to the very top of Niseko.  

2. Niseko Golf Week
The first annual Niseko Golf Week teed off with over 100 hundred competitors stroking it out across Niseko’s four world class golf resorts.

3. Niseko Cricket Competition
International Cricket superstars Dennis Lillee and Rod Marsh came to Niseko on September 20th for the “RidgeRunner International Cricket competition”. 150 people watched 4 teams compete for the 1st prize which was presented at the charity dinner supporting Tyler Foundation

The redevelopment of Hanazono continues apace, and the area will be better than ever with the institutional investors in Hanazono and the Hilton in Higashiyama pouring funds into their resorts . Everyone benefits with better ski runs, improved on-hill facilities and safer skiing.

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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 enquiries@nisade.com
Accommodation reservations@nisade.com
Postal Address Japan
170-5 Aza-Yamada Kutchan-Cho
Abuta-Gun Hokkaido Japan 〒044-0081

www.nisekoalpinedevelopements.com