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
PROPERTY MARKET Supply Overview Real Estate Development by Area - 2020 vs. 2021 Hirafu remains a key centerpi ece, but neighboring areas led by Hanazono, Higashiyama , and Annupuri are continuing to expand.
2021
42%
2020
40%
46% ■ Hirafu/ Outer Hirafu
31% ■ Rusutsu/ Kiroro
■ Hanazono/ Moiwa/ Annupuri/ Higashiyama Source: C9 Hotelworks Market Research
Real Estate Development by Type - 2020 vs. 2021 Niseko' s condominium inventory made up 80% of the market in 202 1.
2021
80%
2020
73% ■ Condominiums
■ Houses/ Land Plots Source: C9 Hotelworks Market Research
Real Estate Insight - Demonstrated Demand Trends Condominiums aaa aaa aaa
Unit configurations:
41% Two bedrooms
Built-up size ran ge :
50 - l 00 square meters
Houses Home configurations:
61 % Three bedrooms
Built-up size range:
l 00 - 300 square meters
Land Plots - Residential ........... as
22
Median size:
843 square meters
Pl ot size:
500 - l , l 00 square meters
C9 Niseko Property Market Review: August 202
l
Source: C9 Hotelworks Market Research
PROPERTY MARKET Demand Overview Condominiums Price Strata - 2020 vs. 2021 A total of 6 8% of th e market-wide condominium inventory is priced between USD0 .5 - 2 million, w ith an avera ge of USD l .68 milli on per unit.
2021
68% aaa aaa
2020
~
65% ■
USD0 .5-2 million Source: C9 Hotelworks Market Research
Houses/Land Plots Price Strata - 2020 vs. 2021 Due to risin g building costs, the average pri ce absolute price ran ge per house .
2021
of homes w as up y-o-y by 5%, moving towards USD l - 2 milli on
65%
2020 ■ USD1-2
million Source: C9 Hotelworks Market Research
Sales Price Market Trend
Sales Pace Market Trend
%
%
50
80 60 40 20 0 -20 -40 -60
40 30 20 10 0
-10
2019
2020
-
20~
I
2019
120
■
Condominium Sales Price(% Change)
■
Condominiums Sales Pace (% Change)
■
Houses/ Land Plots Sales Price (% Change)
■
Houses/ Land Plots Sales Pace (% Change) Source: C9 Hotelworks Market Research
23
C9 Niseko Property Market Review: August 202 l
PROPERTY MARKET Hotel and Property Pipeline Insights Branded vs. Non-branded - 2020 vs. 2021
2020
202 1 Branded Properties
2021: 68% 2020: 41%
■
Branded
■
Non-branded
■
■
Branded
Non-branded
Source: C9 Hotelworks Market Research
Development Pipeline by Type- 2020 vs. 2021 ■
~
Mixed-use
ll
Hotel
a
■ 2021
2020
18%
56%
26%
Residences
Source: C9 Hotelworks Market Research
Property and Hotel Development Pipeline Name
Sansui Niseko Feather Resort Niseko New World La Plume Niseko Resort Aruku-zaka Aruku-zaka - Amari Niseko Aruku-zaka The Pavilion Niseko Resort Daiwa House Moxy Hotel Suncity Hotel Niseko Six Senses Niseko Aman Niseko
Capella Hotel Caeella Residences Snow Dog Chalets Aura Niseko Raku lchi Residences Corniche Hirafu Zia Residences Zia Hotel
24
Location
Units
Type
Opening Year
u
60 105 224 168 126 60 42 34 310 135 100 31 70 149 12 51 12 5 14 36
Hotel Hotel Hotel and Residences Residences Hotel Retail Hotel and Residences Residences Hotel Hotel Hotel Hotel and Residences Hotel Residences Residences Residences Residences Residences Residences Hotel
Q4 2021 2023 2024 2024 2024 2024 2024 2024 2024 2025 2025 2025 2025 2025
er Hirafu Higashixama Higashiyama Middle Hirafu Middle Hirafu Middle Hirafu Outer Hirafu Outer Hirafu Niseko Village Outer Hirafu Outer Hirafu Moiwa
Hanazono Hanazono Higashiyama Higashiyama Annupuri Middle Hirafu Outer Hirafu Outer Hirafu
C9 Niseko Property Market Review: August 202 l
TBA TBA TBA TBA TBA TBA
Source: C9 Hotelworks Market Research
BILL BARNETT MANAGING DIRECTOR C9 Hotelworks is on internationally recognized consulting firm with extensive experience in the Asia Pacific region. Its core business focus includes: •
Hotel and Resort Development
•
Asset Management / Ownership Representation
•
Project Feasibility and Ana lys is
Key competencies include international hotel operator search , selection and contract negotiation, mixed use hotel and residen tial planning and operation reviews . A w ide range of both institutional and private developers and a comprehensive portfolio of completed projects give C9 the ski ll set and background to focus on key issues , evaluate complex ones and assist clients in achieving sol id results. Based in Phuket, Thailand and led by Managing Director Bill Barnett, who has 30 years of experience in Asia Pacific, the firm is we ll positioned to serve an increa sing demanding marketplace.
C9 Hotelworks Company Limited 9 lagoon Road, Tambon Cherngtalay, Thalang Phuket 83 l l O Thailand T +66 (0)76 325 345/6 E info@c9hotelworks com www.C9hotelworks.com