Niseko Property Market Review C9 HOTELWORKS
August 202 l
Hotel brands on the rise as Niseko's land prices continue upward Resort residential land plots sought by investment buyers
Primary Real Estate Market
"In a brooder sense, the highly tourist-reliant alpine resort area of Niseko hos remained attractive to real estate developers and international hotel operators during the pandemic. Overseas investment sentiment hos been such as Six positive, highlighted by projects Senses/Wealth Management Group ( l 00 keys), Moxy/YTL Corporation Berhod (310 keys), and Copello/Shenning Investments (219 keys).
%
USD (M) 3,000
50
2,500
40
I/ I
2,000 1,500 1,000
Also, new developments, namely New World Lo Plume Niseko Resort and Motie Niseko recently launched in the 2021 summer season . Hence, the 2021 Niseko property market hos hit a high in new project/ off pion transactions of USD2 .69 billion.
500 0 -
Although the current worldwide economic remains uncertain, domestic and foreign developers in Niseko ore receiving strong demand for land acquisitions of residential plots .
2019 2020 Transaction Value
30 20 10 0 2021 Growth
Source: C9 Hotelworks Market Research
Commercial and retail rental rotes hove retreated due to a lower number of tourists . However, based on the Ministry of Land, Infrastructure, Transport, and Tourism in 2021 , the overage land appraisal in Kutchon hos continued to rise by 25% y-o-y, making it the highest growth rote in Japan."
A number of projects ore reporting inspection cancellations from offshore buyers, however, there ore luxury real estate soles that ore completing. Another segment seeing demand from bargain hunters is luxury penthouses or multi-milliondollor holiday homes.
Bill Barnett, Managing Director, C9 Hotelworks
•
Growth rote in condominium market prices hos risen by l l % compared to 2020 Average unit soles median price is USDl 7,056 per square meter .
•
COVID-19 pandemic hos delayed New Chitose Airport's privatization process, which began in August 2019. Currently project is on hold.
•
A number of completed projects ore offering promotion discounts from 5% - l 0% to shift inventory.
•
Hospitality sector set for influx of international hotel brands such as Six Senses, Capello, New World, and Moxy (Marriott)
•
New accommodation tax rote at 2% of nightly room rote hos been implemented versus old system of per person charge on a flat rote basis
•
Sapporo City is a possible candidate for the Olympic Winter Gomes 2030 and is eying Niseko Village as a venue for alpine events .
soles