Niseko’s new premium ski-in ski-out property The Vale Niseko is less than 2 weeks from its grand opening. NISADE Chairman Jonathan Martin presents our final project progress update and takes you inside the designer lobby and bar area to show you present the final update on the construction of our flagship Niseko development.

The super efficient Niseko powder provided a fantastic open day for this years season kick off. Niseko properties have been blanketed the past week with around two feet of powder - topped off with sunshine and Yen2000 lifts tickets, many a local were grinning ear to ear. Niseko accommodation in peak season is looking very close to full in many parts of the village. This season looks set to be a blinder with at least three new bars opening in the top village, two new apartment complexes and a host of new guest services.

Niseko’s new premium ski-in ski-out property The Vale Niseko is less than 8 weeks from its grand opening. NISADE Chairman Jonathan Martin presents our 5th project video update and takes you inside the property to show you some of the finishes and features of The Vale Niseko.

With the snowline creeping further south on Mt Yotei, and snow already spotted atop Mt Annupuri, the NISADE team are getting psyched up for another bumper winter of Niseko’s world famous champagne powder snow. We look forward to welcoming many of you to Niseko so you can enjoy some of the Niseko’s powder yourself!

The Niseko Tourism Board (NPB) have been running a promotion called Niseko for Free whereby people who book accommodation in Niseko can enter a competition to win prizes that include free Niseko accommodation, 100,000yen cashback and a variety of other prizes.

NISADE would like to offer our congratulations to our guests who won prizes during the months Septmeber and October. Prizes which NISADE guests have won include 100,000 cashback, a king crab dinner at Pension Fullnote, Dinner voucher for two at the Niseko Northern Resort, Dinner and onsen voucher for two at Nook Annupuri Restaurant / Ikoi-no-mura, Grand Hirafu T-Shirts, Smith Ski Goggles from Fusion Hirafu and a 5000yen voucher from Good Sports. Well done to everyone and to those of you who have yet to book your accommodation, please be sure to enquire about the Niseko for free campaign at the time of your booking.

Q Is the title of the apartment freehold or leasehold?

The title is strata freehold. Foreigners can purchase property in Japan without restrictions. Q Is a solicitor required for the purchase? What are the costs?

NISADE strongly advises using a solicitor. There are several English speaking professional solicitors familiar with the Niseko market we can recommend. Depending on the level of advice sought, the price starts from approximately ¥150,000. This generally includes search of title, registration and common advice. Q What taxes and other costs are involved in purchasing an apartment in Japan?

Contracts in Japan attract stamp duties and real estate transactions also incur property acquisition tax, which is usually up to 1% of market value and calculated by the local government after completion of the project. There are also other smaller local government and registration taxes. Japan has a 5% consumption tax. The sale price of a NISADE apartment includes this consumption tax. Q What are the agent’s fees?

Real Estate Agent fees in Japan are 3%, paid by both purchaser and developer and a complying fee of ¥60,000 paid by the purchaser. Being the developer, NISADE does not charge agent fees on sales. Q What about finance? Is finance available for my apartment?

Borrowing in yen obviously hedges against volatility in the currency markets however it is very difficult for non-residents to gain financing from Japanese banks. The National Australian Bank (NAB) and the Commonwealth Bank of Australia (CBA) offered a Niseko specific yen loan packages. The NAB withdrew late last year and earlier this year the CBA suspended their Niseko finance product subject to regular review. Q Are there any tax implications to stop double taxation and generally assist in international tax management?

Buying real estate in Japan follows typical requirements with stamp duties and government purchase taxes applicable. For the Singaporean and Australian purchasers, the Japan Tax Treaty applies to prevent double taxation. You will be required to submit a tax return in both your home country and Japan. Tax treaties also apply to mainland China however Hong Kong is not included in the listed countries. Further information can be obtained from Japan’s Ministry of Finance: http://www.mof.go.jp/english/index.htm or contact us and we will refer experienced Japanese solicitors or accountants. Q I understand that there is capital gains tax in Japan, who much is it?

Non-residents rate is between 39% on resale profits within the first 5 years of ownership. After the initial 5 years this drops to 19%. Q What other taxes are there in Japan?

Fixed asset tax is charged at 1.4% of the local council evaluation. This evaluation of land and building price usually working usually lags true market values by a factor of three or four hence fixed asset tax usually totals approx 0.3% - 0.5% per annum. Foreigners are charged a 10% tax on rental income profits. However, expenses such as holidaying annually to inspect your investment (flights, meals, local transport etc) can be written off against this tax burden. Also, in the first few years it is possible to dramatically depreciate your property (incl. furniture and fittings) and therefore operate at a tax loss. Q Can you negative gear income, claim losses or depreciate the apartment?

If your country has a tax treaty with Japan you may be able to claim against the rental income of the apartment. Q What are the rental returns?

Owners earn 45% -50% of gross rental income, as is fairly standardised in the Niseko property market. Agent letting fees comprise 25%, management fees 10%, and all out outgoing costs including housekeeping, linen, maintenance, electricity, heating, water rates, snow clearing costs, etc add up to between 15 - 20% of gross revenue. Q How do you market my apartment to ensure that I get maximum returns on my investment?

NISADE uses established relationships with several domestic and international wholesale travel agents. We also promote our properties pro-actively online and receive many direct bookings through our website http://www.nisekoalpineaccommodation.com. NISADE employs a full time domestic marketing managing to generate occupancy from the Japanese market, especially through the summer season. Q I can’t speak Japanese. Will it be difficult to buy and the actually own / manage my property?

No. We will introduce you to various English-speaking, Japanese professionals such as lawyers and tax accountants to help you through the purchasing process. As an owner of NISADE property, you will receive English-language assistance from NISADE’s experienced property management team to help them with any issues regarding your investment. A body corporate will assist in guidance of the property management company should individual issues arise. The above article is an excerpt from our Niseko Alpine Review newsletter. To sign up for the latest copy subscribe here.

Snowfall on Niseko!! The first snowfall of the fast approaching 09/10 winter season has arrived. This year’s snow is early; over two weeks earlier than last year when Mt Yotei recieved its first snow on October 21st.  Surely this very early snow is a telling sign of an epic snow season to come. We cant wait for those fresh powder ski runs!!

Niseko’s ski lifts are expected to officially begin running on Saturday November 21st, however with a bit of luck this could be even earlier. Last year the resort opened on Saturday November 22nd.

The Vale Niseko, racing forward towards grand opening on December 9th. The windows are fitted, wallpapering and tiling is well underway through the building and custom designed furniture is built and currently en route to Niseko.

The eastern wing of The Vale Niseko enjoys fantastc views of the Japanese sunrise over the surrounding mountain valley and the epic local landmark Mt Yotei. For information on the Niseko property market and further updates on NISADE’s projects in Niseko, join our newsletter, the Niseko Alpine Review.

Pictured below is the Niseko Triathlon Training Camp 2009. 15 Participants and two coaches, including Kevin Clark, the assistant triathlon coach for the Hong Kong National Team.  The camp was held from September 16th to September 20th. NISADE partnered with Tritons Triathlon to host the first inaugural event who wish to thank all sponsors and local volunteer guides.

Lined up outside their accommodation at The Setsumon, ready for another days training in Niseko.

Preparing for the swimming leg at the beautiful Lake Toya, which hosted the G8 summit in 2008.

Following on from the recent success of the second annual Niseko Cycle Week, this event was a success with all participants impressed by the surface of the roads, the natural beauty of Hokkaido along the routes, and of course the quality of the air and food!

NISADE Chairman Jonathan Martin brings you inside The Vale Niseko for a sneak preview of the construction progress being made on Niseko’s new premium ski-in ski-out development

The Vale Niseko recieves its final concrete pour on July 31st, 2009.

Taken from level 5 on the eastern wing of The Vale Niseko. The 05 series and 06 series properties enjoy this aspect.

Our builder Nakayama Gumi’s construction team must be congratulated on making such smooth progress. The Vale Niseko is safely ahead of schedule for completion and handover on the 6th of December.

The south eastern wing of The Vale Niseko at its full height. This aspect will recieve tremendous natural sunlight through the floor to ceiling windows.

Cleaning up the interiors, preparing for the fitout and finishes.

The final concrete pour on the roof of the penthouse completes the superstructure of The Vale Niseko well ahead of schedule.

NISADE Chairman Jonathan Martin brings you into The Vale Niseko for an exclusive update on the construction progress at The Vale Niseko. This is the second video in a series which aim to bring you right on-site and annouce real time project updates as they happen.

The Vale Niseko taking shape in a lush green Niseko.

Worker prepare to pour concrete on the final floor of The Vale Niseko.

Our architects vision of The Vale Niseko above and it taking shape in reality below.

This graph belies the Niseko future, just look at the growth from Asia; it now is greater than Oceania and if early indications within our bookings are extrapolated across Niseko that blue line will climb higher.  That said the Australian market is coming back on line as the AUD/JPY moves back towards 80.

Niseko’s rise to become Asia’s #1 winter resort has been featured in newspapers and magazines all over the world.

Niseko                - 11% All Hokkaido       - 10% Hakuba               - 7% Nagano               - 3% Kansai                - 3% Tochigi                -11%

Niseko’s 11% drop off was largely due to the decline in overnight visitors as day skier numbers were stable with single day pass sales 98% of the previous year’s levels. However the decline can be explained further in demographic changes in the market. Last year marked the beginning of a new era in the Niseko market with many non-skiing winter guests. Large Asian families coming on holiday often included many relative who did not ski. We expect this trend to continue as those who have no interest in skiing come to Niseko for the luxury accommodation, food, onsen and scenery. Almost 7million ski lifts were taken in Niseko last season; 18% more than the combined total of the other 15 largest ski resorts in Hokkaido (excluding Niseko). According to Masamichi Togashi, our domestic marketing manager and long term resident of Niseko, the mountain is still operating well under capacity based upon the number of skiers which visited Niseko in the past. Niseko’s skier numbers have risen considerably over the last 5 years, however Togashi claims approximately 3 times the number of skiers enjoyed Niseko’s powder in 1990 during the Japanese bubble era ski boom. Sources: Hokkaido Cableway Association Tokyu Resort Services

(Extract from “Niseko Alpine Review - July 09″ - to subscribe for your latest edition click here)

AUSTRALIA: - 37%

The Australian market suffered more than most last year due to a dramatic shift in the exchange rate between the AU dollar and the yen Pull back only reverted to 06/07 numbers.

ASIA:  + 7.9%

Diverse geographic, socio economic and cultural catchment. Robust long term growth via direct and agency based bookings.

HONG KONG: + 18.5%

Surging growth in visitation (reflected by HK dominated winter sales enquiry). Word of mouth continues to promote the advantages a nearby Asian resort such as Niseko has over its North American rivals (food, onsens, safety, travel time, time difference etc).

SINGAPORE: - 8%

This was a surprise to most of us (certainly not reflected in NISADE’s guest figures). To put this drop in perspective, more than 3 times the number of Singaporeans visited Niseko in 2008/09 than did in 2006/07.

KOREA: - 42% TAIWAN: - 24%

The domestic ski industry in Korea, feeling the pinch of the economic crisis offered hugely discounted rates in an effort to persuade Korean skiers to holiday domestically. Like the Australian market trend, these are dramatic falls which were preceded by even more dramatic increases the year before.

MALAYSIA: + 497.5% THAILAND: + 149% RUSSIA: + 236%

These new markets in Niseko began to show their potential of becoming major players over the next 5-10 years.

NORTH AMERICA: + 59% EUROPE: - 2%

While still at a very low base, there were promising figures within these markets.

CANADA: + 481% FRANCE: + 325% GERMANY: + 200%

Growth until this point has been almost entirely through word of mouth. We project a continued steep increase in skiers from these large, mature ski markets as skiers look for a richer cultural experience on ski holiday. Also on-ground operators have not yet even begun to proactively market their accommodation offerings through European / American based travel agents.

To gain greater insights into the high end Niseko rental market, we take an in-depth look back at the profile of our guests at The Setsumon.

Our guest services team noticed a sudden shift away from a predominantly Australian market during the 07/08 season. Despite this trend, Australia remained the largest demographic within our own client base, in particular if number of bed nights are considered. Many of our past Australian guests were repeat clients, while the majority of our Asian guests made their first booking with NISADE during the 08/09 season.

Our construction team during their early morning assembly meeting.

A sneak preview inside The Vale Niseko. The fitout begins in the first level.

The Hirafu village is the heart of the Niseko resort. If you have visited Niseko the chances are you stayed somewhere in one of the two pictures below. Built on the base of the ski slopes it is divided into an upper, middle and lower section.

The below picture shows developments which have been built in the upper village (ski slopes to left and top of picture). The colour signifies the year construction began on each site (Blue 2005, Red 2006, Yellow 2007, Orange 2008).

As you can see from the picture below, the middle and lower village have become quite densely developed in a short space of time.  The orange indicates those properties which began construction as of June 10, ’08 and the green as of October 31, ’08.

Ricardo Tosanni Architecture, the urban planning consultancy firm presented a 118 page document. Step 1 of a very detailed plan for long term sustainable development calls for all electricity and phone cables on Hirafu’s main street to be buried underground. We can confirm the local Japanese government has agreed to help fund of this stage with work scheduled to commence in 2010. Government support of this significant master-plan is a further boost to the longer term sustainable development of the resort.

Above is a computer generated image of the streetscape  outside The Setsumon after the initial stages of the Masterplan are completed; no overhead power/telephone cables, strict commercial signage restrictions, geothermal heated road and payments, new bus shelters, more trees and improved street lighting. (Extract from “Niseko Alpine Review - July 09″ - to subscribe for your latest edition click here)