We believe that coastal/beachfront land in Asia-Pacific is an undervalued and under-researched long-term ‘real’ asset class with the prospect for significant capital appreciation and is a long-term hedge against inflation. Our research demonstrated that coastal land values in the South of France increased between 2000% and 4000% from 1955-2005 whilst inflation rose 1240% during the same period. Similar coastal land appreciation occurred in the United States over the same period. The economic circumstances that historically drove this significant growth in coastal land values in Europe and the United States are even more prevalent in Asia today, namely, an enormous growth in middle class consumption, increasing travel and tourism and the growth of low cost airlines improving accessibility. We believe the growth of affluence in Asia will lead to an increasing demand for holidays/hotels/villas in key coastal destinations. This upswing is being facilitated by new infrastructure investments in terms of new airports, new flights and new roads.
In the same way that the rising affluence has driven the demand for beach holidays, it has also fueled the desire for snow and summer mountain experiences. Niseko has witnessed healthy development over the past ten years as a ski destination and we are strong believers this growth trend will continue as improved infrastructure and access are planned by the Government for the area. In 2017, the Ministry of Transport announced 11 airlines scheduled to add an additional 79 round trip flights between Hokkaido’s New Chitose Airport and airports in China, South Korea, Southeast Asia, and Japan. With improved access and infrastructure, additional international standard and branded developments, Niseko will further strengthen to become an all year-round destination. In addition to Niseko, we will also be looking to invest in travel and tourism real estate opportunities across Japan given the government’s target of 40 million visitors by 2020 as it seeks economic growth through tourism.
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