Good snow business for Alpen Ridge developers Don O’Rorke and Scott Hutchinson
Apartment prices in the ski resort township of Niseko are booming, which is good news for two Australian developer mates who pioneered a resort there 20 years ago.
It’s just days before Christmas and the Japanese resort ski township of Niseko, which is experiencing more snowfalls — think 19cm and 23cm per day — than it has welcomed in 68 years, has so much snow dumping it is difficult to ski.
Forget that people tell you the township, 100km north of Sapporo, is full of drunken Australians — rather, it’s teeming with wealthy Europeans and North Americans. Cashed-up Australians typically arrive in January.
Everyone is here for the outstanding skiing and snowboarding — at half the typical price in Australia.
As a result of the snowfalls and premium facilities, Niseko’s real estate re-sale prices have risen by an average of 300 per cent over the past 20 years.
Niseko’s sticky powder snow makes me a better skier; as unlike some seasons in Perisher, Thredbo and Falls Creek, I’m not dodging ice, rocks, trees and mud.
Since Queensland developer Don O’Rorke, chairman and CEO of Consolidated Properties Group, got together with Scott Hutchinson, chairman of Hutchinson Builders, and developed Alpen Ridge two decades ago, apartment prices in the resort ski township have jumped 300 per cent.
Given the abundant snow and easy access to the chair lifts, plus cheap ski passes (about half the price of a Thredbo day pass) and lessons, I can see why.
Niseko is now a premier international ski destination attracting Europeans, North Americans and Chinese mainlanders.
O’Rorke and Hutchinson were pioneers 20 years ago. They were impressed by Niseko’s time zone, similar to Australia’s, its snowfall — averaging 16m per year — and accessibility, which will improve further once construction of the Shinkansen bullet train between Tokyo and Niseko is completed, which is estimated to be done by 2030.
At present people can take the one-hour flight from Tokyo to New Chitose and then take a two-hour taxi to Niseko.
“My experience with skiing in New Zealand and Australia was often marred by poor snow conditions and high costs, making Niseko’s reliable snowfall, premium location and accessibility particularly appealing,” says O’Rorke, who has developed widely across Queensland and northern NSW.
In 2004, O’Rorke and Hutchinson discovered the best site in Niseko for sale, which included pre-approval to build Alpen Ridge, and purchased the site for $600,000.
Hutchinson Builders oversaw the project delivery, with an Australian team and local Japanese architects and builders, ensuring the project was completed on time and on budget over two seasons.
All 30 apartments sold out within two hours in a Brisbane boardroom to a select group of investors, including well-known Brisbane families. O’Rorke and Hutchinson kept the best apartments, securing the two penthouses for themselves.
Despite the looming Global Financial Crisis, the resort opened in January 2008. Since then, the apartments have appreciated in value significantly, with resale values increasing by an average of 300 per cent.
Ruskin McLennan, who is a longstanding agent of 20 years for Peak Property Niseko and specialises in the Niseko market, said Niseko property has tripled in value since 2008. “It’s on fire. Niseko property has tripled since 2008,” McLennan said.
“We were selling three-bedroom apartments for an average of $US800,000 ($8000 per sqm), and now they are selling for over $US2.5m ($25,000 per sqm).”
“For a comparison, for real estate in Aspen, Colorado, it’s on average $US35,000 per sqm, so the Australian equivalent is about $60,000 per sqm.
“Niseko’s popularity is growing, and there is still a lot of capacity for real estate price growth as the world sees the benefits of skiing in Niseko.”
O’Rorke and Hutchinson visit Niseko annually and, when they are not there, their penthouses are available for rent, managed by experienced Niseko-based property manager Niseko Wow, which is owned and directed by long-term Niseko resident Ian MacKenzie.
These luxurious 300sq m, four-bedroom, ski-in/ski-out apartments are highly sought after.
Rental rates range between $1700 up to $5000 per night for peak season. Alpen Ridge offers luxury units ranging from one to four bedroom units with fully equipped kitchens, and ski-in and ski-out access, which is direct to the slopes. Niseko Wow also offers ski valet services, where they will personally fit boots in apartments if required.
Downstairs in Alpen Ridge, there’s a coffee and takeaway service, as well as a ski shop selling the latest gear, and the staff will drive people to restaurants if required.
There’s also ski storage and drying rooms, with most staff either young Australians or Brits eager to help out.
The completion of luxury developments like the Aman Resort and the already established Zaborin Ryokan are set to elevate Niseko to the status of an Aspen-like destination in Japan.
O’Rorke adds: “Seeing Alpen Ridge flourish over the past 20 years has been incredibly rewarding. Niseko’s charm and exceptional snow conditions have made it a standout destination.”
The writer stayed in Niseko as a guest of Alpen Ridge.
niseko-wow.com/alpen-ridge
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