The New Niseko Market - Are you (and your property) ready?
It is a truism that there will be sunshine after rain. And it’s just the same with the property market here in Niseko.
We have seen one of the harshest downturns in the global economy in living memory and no sector has escaped the knock-on impact of the coronavirus pandemic completely unscathed. But history teaches us that all things pass – as they did after the “Lehman Shock” of 2008 and countless other downturns in years gone by. And the lesson is that after a decline, there is typically a “correction” that sees a spike in the other direction.
With more people vaccinated and “travel passports” being rolled out by many governments, as well as growing confidence in business circles, there is cautious optimism that 2022 might see the rebound in the travel industry that we have been looking forward to.
With the bounce coming, are you – and your property – ready to maximise your investment?
Here at H2 Real Estate, we have put together some recommendations for all property owners wanting to best ride the crest of the recovery.
Maintenance
Your Niseko property is a valuable and important asset – it needs to be looked after. The rental market may be challenging at the moment, but that does not mean you should skimp on maintenance and management of the property. We all know the climate in Hokkaido can be unforgiving and a minor issue – a small leak in the roof, an electrical glitch – can quickly become a major problem. And that is when things can get expensive.
Take care of any minor faults straight away and you’ll have peace of mind down the line. And rental clients who will want to come back again and again. Bottom line is that an asset that is well-kept and visibly cared for will be snapped up more quickly as soon as the market returns. And if your property manager is having to take time off due to the coronavirus, find a new manager who will give your valued asset the care and attention it deserves.
An Agent You Trust
As an owner, the relationship you have with your real estate agent is critical: This is the person who will be promoting your property to potential clients, and looking after your interests in price negotiations.
Find an agent that you feel comfortable with and trust. Stay in touch with him or her regularly and build on that relationship. Demonstrate that you’re a hands-on owner. Keep up to date on the market, even if the outlook is a little uncertain, and don’t hesitate to ask your agent for advice on a property.
The best agents are typically extremely busy – primarily because there are so few that really have a firm understanding of the market – but the top outfits will always make time for their valued clients.
Positive Image
A picture, as they say, speaks a thousand words. And they’re right. A client’s eyes are inevitably going to be drawn to properties that are advertised with the most attractive and appealing images, both of the interior and the exterior. Once you have the buyer’s attention, reel them in with the written description highlighting the pluses of the property and its location.
In our experience, accommodation that is shown in the most favorable light receives the most interest. We would recommend having your property photographed professionally through your agent. The investment you make here with a pro photographer will almost certainly be repaid in a higher sales price.
New For Old
Furniture and fittings that are old or shabby are sure to put off a potential client. They could be forgiven for concluding that an owner who is not willing to replace worn interior equipment may be scrimping on other areas of the property.
Replace items that are scruffy and refresh those that make the property appear dated. Bright colours and a clean, contemporary look will go a long way to increasing the appeal of a location.
The better a property presents when it is time to sell, the better the image among a potential buyer. Give them the sense that everything about the place has been cared for and well maintained.
Pricing strategy
Remember what we were saying about having an agent that you can trust? That is never more important than when it comes time to sell and you are working with that agent to price your very valuable asset.
Niseko can be a complex market to understand, with countless factors and fluctuations to take into consideration. We recommend that you listen to the advice of a trusted agent with a proven track record, and apply a pricing strategy that makes sense to the local market. An agent who has not let you down previously will similarly be on the ball at this stage in your working relationship.
The bottom line is that the market is looking for well-presented and cared-for properties that offer value, so a property owner needs to come up with a figure that shouts value in the market.
Let’s connect! If you have any questions regarding any aspect of Real Estate in Japan, contact us at [email protected].