Some Singaporeans are splurging millions in Japan, particularly on freehold ski lodges and apartments in Niseko, a ski town in Hokkaido, just at a time when record property prices are making headlines in Singapore.
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In December 2009, Singaporeans shelled out US$20 million (S$27.5 million) to US$30 million, snapping up 16 out of 23 apartments in one development within 1 1/2 months.
The Vale Niseko project, located on the ski run of upper Hirafu village, is comprised of 49 luxurious serviced apartments.
According to Mr. Derek Kennewell, Niseko resort branch manager for property marketing firm LJ Hooker, Singaporeans purchased three-bedroom units, which cost between US$1.1 million and US$3.3 million each.
Singapore visitors to Niseko have increased by 73 percent to 4,827 in the latest winter, from 2,787 the previous winter, according to data released by the Niseko Promotion Board.
Mr. Kennewell said that while Hong Kong has always been the go-to market for Niseko’s property launches, marketeers have started to see Singaporeans picking up the trend.
Miss Mae Loh, managing director of Annapuri Land, confirmed this trend. The 149-unit luxury development, which was launched here in November 2009, has seen four buyers from Singapore.
Foreigners who own a freehold property in Japan are given no restrictions.
Property prices are expected to rise, with global investors pouring money into Niseko, said Mr. Kennewell.
Some of the high-profile investors include Malaysian property conglomerate YTL and Hong Kong tycoon Richard Li. They bought resorts worth six billion yen, and A$20 million (S$25 million) to A$30 million, respectively.