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niseko alpine review >> sept 2008

Whoops… Seems like an internet gremlin ate half the Niseko Alpine Review last time it was sent! If you received the complete document, apologies for filling your mailbox up again. To everyone else, we hope this time you get the whole thing!

Summer is in full flow in Hokkaido and the Nisade Team wish they had more time outside of the office to enjoy the sun’ rays. With the commencement of the Vale construction, the team has finally had some weekend time to enjoy our environment, the fantastic local golf course, softball and barbequing freshly harvested local vegetables.

Niseko’s growth is not exclusive to its winter season with summer business definitely on the increase this year. Just as many Japanese visitors have traveled north to Hokkaido to escape the suffering heat, humidity and rainy season experienced in mainland Japan so too have visitors from Hong Kong, Taiwan, Malaysia and Singapore. Even Australians are showing up to relax in the environs with Hugh Jackman recently enjoying a few idle summer days.


 
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Regional & Sector Stability

The financial world has been shaken by the sub-prime crisis in the US, and rising oil prices have impacted upon everyone, everywhere; but the impact has not been felt quite equally in all corners of the world. China’s growth has been a stabilizing influence for the economies of SE Asia in particular Japan; thankfully much of Asia has been insulated from the worst effects of the US slowdown.

Real Estate growth in Japan is strong, with prices rising for the last three years after a long period of inactivity. In 2007, average land prices nationally rose 10.0%, bettering the previous year’s robust showing of 8.6%. 2008 shows signs of an even stronger market as global corporate investors shy from the US and look to regional growth and stability and the security of property. This is especially true of the Niseko area, where according to the Ministry for Land, Infrastructure, Transport & tourism in twelve months last year prices rose some 37.5%. In the six months to June ’08, sales of commericial property in Japan surged 103%, in sharp contradiction of the US (down 69%) and the UK (down 64%).

This illustrates not only the difference between the US & European markets and Asia, but also the strength of “Bricks-and-Mortar” investments. Property trends are typically of a longer duration, and lack much of the volatility of stocks.

The result is that Japan in general, and Niseko in particular, remains a strong investment option. Given the corporate interest in the area it is difficult to predict how long individual investors will be able to keep pace with the market. Already retail land prices in central Hirafu have risen considerably over the last three years – as anyone who purchased before that will happily attest.

In times of a retracting global market smart operators can often do very well as good buying still exists and people who do the research can usually find attractive capital growth prospects. For more information, try the following articles: Property investment in Asia reaches record $121billion USD, Boom Time for Hokkaido ski resort area.

 

 

CBA Loan Options

Australia’s Commonwealth Bank recently announced significant extensions to its Japanese Yen loan packages – opening up the Niseko market to a wider market than ever before. The CBA offers two packages which share many attractive features – the Japan Snowfields Property Loan (JSL) and the Japan Residential Property Loan (JRPL) Of prime interest to international investors is the range of purposes to which these CBA loans can service: to purchase an existing property, to purchase new property Off-The-Plan, to refinance existing loan or to access equity held in Japanese properties. What makes these loans particularly attractive is their low interest rates and the positive influence this has on returns.

A quick look at the numbers tells the story. The graph below charts financing $350 000 Australian dollars through the Commonwealth Bank in Australia on industry standard terms (P & I, 30yr term, 9.0% pa) would require a monthly repayment of $2 816.18. A loan for the same amount thru the CBA’s JSL product at current rates (P & I, 25 yr term, 3.95% pa) reduces the monthly payment to $1 837.78. To look at it another way, the total interest saved over the life of the loan would be an astounding AUD $ 462 490.52! And that’s at the minimum repayments – the benefits only increase as the repayments rise. The increased payments line shows the huge interest savings available by repaying the JSL package early – in this case at the same rate as the standard CBA home loan. Not only do you save real dollars, but the time to clear the loan reduces to 13 years.

This difference will obviously have a significant positive effect upon your Cash on Cash return. Of course, these models are estimations only. For detailed information on these financial products please follow this link to the CBA.

 
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The Vale Niseko Latest Developments

The journey begins on this majestic Niseko icon!

The demolition of the former building started in the first weekend of July to make way for Niseko’s new flagship building, The Vale Niseko. It was an emotional moment for the former owner, he proudly joined the Nisade team to celebrate the beginning of our journey with the Vale.

50 premium apartments perched at the base of the mountain directly on the ski run and right in the heart of the village centre. The Vale Niseko brings a true international building in design and quality to Niseko. Fully integrated with apartments, resort rooms and après bar and grill, onsens, pool and a casual café, it offers it all to not only the winter market but more importantly to the summer market.

The Vale Niseko sets the benchmark as Niseko’s pinnacle of luxury; the area’s first truly premium property featuring private natural thermal baths (true Japanese ‘onsens’), up the run ski views and chic alpine designer interiors by one of Japan’s most respected interior firms, Nikken Space Design.

Final details are coming together wonderfully for this fantastic ski-in ski-out location with an international design team bringing out the best in design and functionality to this building.

The building design is unique, it pushes conventional architectural thinking as Nisade worked to engage the environment and the unique aspects of every apartment. Each apartment offers a unique Niseko panorama, from onsens overlooking the ski run, to lounge rooms warmed by the morning sun rising across Mt Yotei to balconies capturing the alpine glow of Mt Annupuri.

With a concierge desk in Niseko’s sleekest lobby, The Vale Niseko is an alpine extravagance. On premises amenities include a true Japanese aquatic experience including  a registered Japanese onsen, a heated outdoor pool, hot stone relaxation tables and saunas; the perfect reward after the day on the slopes.

Interiors combine a perfect après chic atmosphere with the ecological friendly open fire, natural stone wall finished and timber ceiling highlights.

www.thevaleniseko.com

Nisade has newly released it’s Resort Room properties in The Vale Niseko. Securing one of these fantastic opportunities may still be possible

 


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Niseko Initiatives and Community Update

The melt water has ensured that every day busloads of tourists have been getting their summer thrills white water rafting on the rivers close by. Canyoning, kayaking, rock climbing, downhill mountain-biking and trekking have seen the busiest Niseko green season to date.

Hiking is one of the emerging activities with more people earning their view as they labour up the peaks to enjoy views in all directions. From the summit of Mt Yotei you have an unsurpassed view of the ocean, lakes, fertile valley and the surrounding mountains peaks. Several ski-lifts are running daily, taking people to the mountain top (the quick way) to savor the views of the lush alpine valley below.  

Niseko’s music lovers were thrilled by the hugely successful Hanazono Kutchan Jazz Festival which was held on July 5th and 6th. International superstar jazz musicians (such as Roy Ayers, Wayne Henderson and Miko Howard) performed at the festival. Nisade’s Setsumon was a luxurious home away from home to the headlining acts for the weekend.

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A member of Niseko Mountain Bike Club takes on a dirt jump at a local “dirt jam” competition!

Local Niseko businesses are engaged in staging the upcoming Niseko Cycle Week and Niseko Golf Week, initiatives designed to establish and grow annual events. The Niseko Promotion Board publicised Niseko as a world class resort destination at the June International Travel Expo in Hong Kong and the Singapore NATAS Travel Expo in early August.

In local new, the “hotel formerly known as Prince” has undergone a multi-million dollar renovation (backed by corporate giant Citigroup) was reopened on July the 1st as the Hilton Niseko Village. The hotel now offers onsite summertime activities including golf, horse riding, fishing, hot air ballooning and tree top rope courses.

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The Hilton Hotel’s entrance

 


地鎮 Ground Breaking Ceremony

A traditional Japanese ground breaking ceremony was undertaken by a Shinto Priest to bless the grounds of The Vale Niseko. The Jichinesai Ground Breaking ceremony is an ancient Shinto ritual intended to pay respect to Kami-Samma (god) of the earth. It is believed to help bring protection against bad luck, incident or injury, both to those who construct the building and, also, to those lucky people who will inhabit it.

The ceremony is both a religious and a cultural one. Nisade is owned by Australian directors; however it is a Japanese registered company. We at Nisade have great respect for Japanese culture and tradition, and when appropriate we like to “do things the Japanese way!”

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Nisade Staff Update

The Nisade team has grown quickly in recent months to keep pace with the rapid growth of the Niseko property market. Six new staff have been hired in the last two months alone, with varying specialisations in interior design, sales and marketing and property management.

A Canadian-Japanese with international professional experience in interior design, Ryo Miyagaki joins our team. He will lead the conceptual design direction of future projects as well as design oversight on current projects.

Chris Chan has been appointed head of Sales and Marketing at Nisade. With many years in Japan, and in luxury property development, he will bring a wealth of industry knowledge and experience to the sales team.

The Sales team has another new member in the shape of young Irishman Andrew Clarke. Starting his fifth year in Japan, this International Marketing graduate hopes to compliment Chris’s extensive experience with his friendly charm.

Togashi Masamichi could boast about over 20 years of wide-ranging hotel industry experience, that is if his Japanese sense of modesty would let him. He has joined Nisade specialisnig in domestic summer marketing.

 
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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

Australia
Local call - 02 8249 8194        
Fax - 02 8249 8101
Postal Address Australia
Level 4, 95 Pitt Street Sydney NSW 2000

www.nisekoalpinedevelopements.com

 

 
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Japan > Hirafu Village, Niseko - 170-5 Aza-Yamada Kutchan-Cho Abuta-Gun Hokkaido Japan 044-0081
Australia > Level 4, 88 Pitt Street Sydney NSW Australia 2000

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