AT A time when record property prices are making headlines here, some Singaporeans are splurging millions in Japan, on freehold ski lodges and apartments in Niseko, a ski town in Hokkaido.
Last December, Singaporeans snapped up 16 out of 23 apartments in one development within 1 1/2 months – for a total sum of US$20 million (S$27.5 million) to US$30 million.
The Vale Niseko project houses 49 luxurious serviced apartments and is located on the ski run of upper Hirafu village.
Singaporeans bought three bedroom units that cost between US$1.1 million and US$3.3 million each, said Mr Derek Kennewell, Niseko resort branch manager for propertymarketing firm LJ Hooker.
Singapore visitors to Niseko, fast becoming popular for its powder-fine snow, have risen by 73 per cent to 4,827 in the latest winter, from 2,787 the previous winter, according to data from the Niseko Promotion Board.
While Hong Kong has always been the go-to market for property launches in Niseko, marketeers have begun to see Singaporeans picking up the trend, said Mr Kennewell.
Ms Mae Loh, managing director of Annapuri Land, developer of Capella Niseko Resort and Residences, confirmed this trend. The 149-unit luxury project was launched here last November and has seen four buyers from Singapore.
There are no restrictions on foreigners owning freehold property in Japan.
Mr Kennewell was in Singapore late last month to help launch Akazora, a 26-apartment boutique development. It was the first time that main marketing agent, IP Global, launched a Niseko property in Singapore ahead of Hong Kong, where the firm is based. Property investor Kelvin Tan, 33, recently bought a ski chalet and a studio apartment in Niseko for personal use and investment respectively.
He spent 27 million yen (S$393,000) on the customised, two-bedroom, double-storey chalet even before visiting Niseko. After his holiday there in February, he co-purchased the studio unit in Akazora, at 23 million yen, with a friend.
Said Mr Tan: “Niseko is like where Whistler was 10, 15 years ago, when nobody had even heard of it.”
Whistler, located in British Columbia, Canada, is considered the world’s top skiing destination. “Then, when the world was going through an upswing, a lot of Americans started going to Canada to ski, and you could see property prices going up,” said Mr Tan, who snowboards and owns a quarter-share of a onebedroom unit in Whistler.
With global investors pouring money into Niseko, property prices are expected to rise, said Mr Kennewell.
Some of the high-profile investors include Hong Kong tycoon Richard Li and Malaysian property conglomerate YTL. They bought resorts worth A$20 million (S$25 million) to A$30 million, and 6 billion yen respectively.
Source : my paper – 9 May 2010