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eal estate T real estate newsBy Lorne CalhounUtopian villagenear HirafuNISEKO Kogen Kanko Co. Ltd., the company managingGrand Hirafu, the largest mountain resort in Niseko, isworking on a new development named Irenka Village.Irenka is an Ainu word meaning Utopia and withintheir 25 hectare site on the outskirts of Hirafu, Tokyu isplanning to develop two hotels and at least 20condominiums. Plans also include shopping facilities anda farm area where people can rent land to grow and eattheir own organic vegetables.Tokyu is planning to offer a private shuttle bus fromIrenka Village to the ski fields, as well as a lounge exclusivelyfor Irenka guests located at the base of the ski fields.“This development will bring not only a new level ofdesign and quality to Hirafu, but also a sense ofcommunity,” said Kensaku Kuno, executive officer of NisekoMt. Resort Grand Hirafu and Tokyu Resort Service Co.”The hope of this development is to create a uniquearea, surrounded by the natural beauty and tranquility ofNiseko, a place that embodies the essence of Irenka.”Hirafu master plan Property tradingRiccardo Tossani Architecture has beencommissioned to initiate a Master Plan study with afocus on the main street in Hirafu.Hirafu-Zaka Street, from the Welcome Center to theDowntown Café, is Hirafu's principal gateway to themountain and to many people the first impression ofthe resort.“We have been commissioned by the NPB (NisekoPromotions Board), as part of their long range visionto enhance the character and substance of the entireNiseko mountain resort area, but we are alsoperforming a lot of our work pro-bono,” masterarchitect Riccardo Tossani said.“The plan will initially focus on the signage andimage issues with respect to the main street, and wewill make a preliminary presentation in March.“For the moment I can say that we will proposeunderground power lines, cables and hide unsightlyinfrastructure, as well as make sense of thecacophony of signs and visual clutter dominating thestreetscape.”LOCAL real estate agents and vendors are working tohelp Australian buyers acquire property in Niseko inlight of the current unfavourable currency situation.Trading international property as well as vendorfinancing are a couple of methods being explored.RidgeRunner Real Estate sales agent DerekKennewell has had some interest in internationalproperty trades.“Many buyers are developers and vendorsthemselves in their own countries, and recently I havebeen working to co-ordinate property trades betweenAustralia and Niseko,” he said.“Niseko is such a global market, that we need tolook out for global ways to structure win-win solutionsfor both buyer and vendor,” he said.Local vendor and developer Rod Hoy is proposingvendor financing on his properties.”We are looking at offering 50 per cent down andthe rest over three years at 5 per cent per annum. Thisallows cost price averaging over the time of therepayments due to currency fluctuations.”IRENKA... The proposeddevelopment bottom right.New designer in townNISEKO Designer Homes, a new specialist homedesign company, has joined the local residentialconstruction market.Founded by Chris Chan – formerly head of sales andmarketing for NISADE, and an award-winning buildingdesigner from south-east Queensland with a successfulconsultancy in Australia – Niseko Designer Homeswill soon begin contributing to design and buildingin Niseko.“I believe our portfolio of completed works ranks withany builder in the area, and having run a successfulconsultancy in a very competitive market should hold usin good stead,” Chan said. “I bring experience and agenuine love of the design and building process, butmost of all I think I offer a different mindset to most ofthe builders operating here at present.”Chan said the design and build process was differentto buying a pre-existing home, or off-the-plan. “To sitdown and talk to someone about their ideas, thenhanding the final product over to them completed… Ifind it personally very rewarding,” he said.Japanese baby boomers come to the rescueBy Matthew Roy, Hokkaido real estate journalistWITH the global economic crisis throttling overseassales of Niseko real estate, Japan’s cashed upgeneration of baby boomers could be poised to makea comeback.A look at local property registers today revealsplenty of Williams, McDonalds, Chans and Chusamong the owners of recently built rental propertiesin Niseko, but almost no Tanakas or Nakamuras.Almost all new stock in the village has been marketedand sold to Australians, local expats and Asians livingin the Asian continent.But now two of Niseko’s most recently announcedprojects, the 124-unit ABOVE+BEYOND hotel andresidential complex and Niseko Village’s 1,000 unitdevelopment of condominiums and free-standingvillas, will devote significant chunks of theirmarketing towards Japanese buyers.Their timing is impeccable. Most Japanese savershave been spared the financial pummelling of theiroverseas counterparts as a greater proportion of theirwealth is held in bank deposits and cash than sharesand properties. Further, Japan’s richest-evergeneration is now retiring and pensioners want toswitch cramped apartments in stifling gray cities fortemperate climes and green spaces.There are around seven million dankai no sedai – babyboomers officially born in 1947, 1948 or 1949 – and theyhold total financial assets worth ¥130 trillion according toDai-ichi Life Research Institute The total amount ofseverance pay and retirement benefits the boomers areentitled to over 2007-09 may reach ¥45 trillion.With an eye on this purchasing power, Japanesecompanies and the prefectural government arealready busily encouraging them to spend theirgolden years in Hokkaido. Now it’s Niseko’s turn.Beckett Tucker, sales director at Above+Beyond, sayshis company has identified baby boomers as animportant market for its development. A key sales pointto attract them will be a 4 per cent guaranteed rentalreturn.“We see Japanese buyers and baby boomers as animportant market. One key factor is that they’re mostinterested in visiting Niseko in the summer, whichwould help developments boost occupancy outsidethe ski-season.”Luke Hurford, general manger of Niseko Village,the company best known as the operator of theNiseko Village Higashiyama ski area, says a majorreason its planned development will be medium-tolowdensity is to attract city-based baby boomerslooking for open spaces. His group has beenconducting market research to look at their needs.“From a tourism perspective, the baby boomermarket is phenomenal,” says Hurford. “They have longerto stay and more to spend. The high rental returnsNiseko offers in winter will be important in attractingtheir investment. We also need to ensure that there areenough facilities, such as high quality restaurants, thatthey require during their summer holidays.”Tokyo-based development economist, YasunoriHomma, who also operates a farm in Niseko, thinksthat a more rural lifestyle might be the best way tomarket the area to baby boomers. “Many retireeswant to do something completely different from theircity lives once they finish work. It’s an immaturemovement but the idea of retiring to farming isbecoming more and more popular among babyboomers and could become a significant trend.”The Japanese government is extremely interested inthis possibility, says Homma, as baby boomer farmerscould help stem the depopulation of the Japan’s smallreal estate news T real estateTHE NEXT BOOM... Savvy developers aretargetting cashed-up Japanese baby boomers.Photo: Niseko Photography.towns and villages as young people move to the cities.One irony that hasn’t escaped the developers isthat this will not be the first time that baby boomershave come into town. Many of the buyers who firstbought resort real state in Niseko in the bubble era ofthe late 1980s and early 1990s were baby boomers.The McDonalds and Chans settling down to enjoytheir new houses in Niseko are living in subdivisionsplanned and originally sold to the Nakamuras andTanakas.AMAZING BEAUTY... Niseko's other drawcard.50 powderlife ISSUE 15 february 21 – march 6 2009 www.powderlife.com www.powderlife.com february 21 – march 6 2009 ISSUE 15 powderlife 51