On Nov 29, Singapore-based luxury developer SC Global Developments launched its latest residential offering, the 190-unit Setsu Niseko luxury hotel residence in Niseko, located in the northern perfecture of Hokkaido, Japan. Niseko, famous for its powder-like snow has three major ski resorts on Mount Niseko-Annupuri — Grand Hirafu, Niseko Village and Annupuri, which cover most of the southeastern half of the mountain.
Simon Cheong, founder and chairman of SC Global Developments, identified the 2.54-acre, prime freehold site within the village of Grand Hirafu, and purchased it in 2015. Cheong declined to disclose his purchase price, except to say that he bought it from “a charming Japanese lady in her 80s” who owns the site behind it as well. “She wanted to sell to a credible developer who would do justice to the site, as it was handed to her by her husband,” he says.
Setsu Niseko is located on the Main Street (Route 343), a few minutes’ walk from the Hirafu Gondola Station, where skiers can easily access the ski slopes. Flanked by two mountains, Setsu Niseko enjoys unparalled views — units facing the east will have breathtaking views of the majestic Mount Yotei (the Mount Fuji of Hokkaido), while those facing the west will have picture-postcard views of Mount Annupuri.
The development comprises 190 luxury residences across four blocks and spanning six floors. There is also 10,000 sq ft of F&B space that will be leased to “new to market” operators in Niseko. Units range from studio apartments starting at 439 sq ft; two-bedroom units with tatami rooms from 994 sq ft; and three- and four-bedroom units from 1,518 sq ft. There are also penthouses with 270-degree views. Prices start from US$500,000 ($688,833) for a studio apartment.
Prior to the launch, SC Global had already received more than 500 enquiries. At least 40% of the potential buyers who have expressed interest are Singaporeans. As such, private previews will start in Singapore this weekend, followed by Niseko later in December.
Singapore architect Mok Wei Wei of W Architects, who designed SC Global’s 241-unit luxury residences, Hilltops at Cairnhill Circle, has also been engaged to design Setsu Niseko in collaboration with Japanese architects Field Four and Kume Sekkei.
While Setsu Niseko has a Japanese feel, SC Global has also injected its brand of luxury and thoughtful touches into it: Every bedroom has an en suite bathroom; there are shoji screens, tatami rooms and ski closets, as well as heated racks in the bathrooms. “I embarked on this project because I felt there was a tremendous lack of such accommodation in Niseko,” says Cheong.
According to C9 Hotelworks Market Research in June 2018, foreign visitor arrivals to Niseko outperformed domestic travellers, with y-o-y growth of 17% in 2017 and a five-year compound annual growth rate of 16%.
The top five Asian visitors are from Hong Kong, mainland China, South Korea, Taiwan and Singapore. “Freehold ownership, a lower Japanese yen, and high capital gains have boosted the real estate market in Niseko,” says the C9 Hotelworks report.
Marketwide, the average selling price of condominiums grew 12.5% in 2017. Similarly, the average builtup price for condos in Niseko has soared 25% from last year. About 80% of the units at Setsu Niseko are one- and two-bedroom units. This is in line with market demand, as the most popular condos in Niseko are those in the 70-to-90 sq m range and priced from US$500,000 to US$1.2 million, according to C9 Hotelworks.
Setsu Niseko is scheduled for completion in 2021. According to SC Global’s Cheong, owners will have the flexibility of using the residence when they are there on holiday for as long as they like, or putting it into the rental pool.
“We’re happy that we’re able to leapfrog into Japan, and we’re in a very sweet spot in Niseko,” says Cheong. “The value of the project is likely to appreciate, as demand far exceeds supply.”