Knight Frank has recently published The Ski Report 2024, which shows that the average price of a ski chalet has increased by 4.4% in the 12 months leading up to June 2023. This growth rate, except for the pandemic years, is the highest since 2014. Supply remains tight and across three key French resorts, listings are down 56% compared to pre-pandemic levels, and this is set against a backdrop of robust demand.

There are clear challenges ahead for ski resorts, not least climate change, the need to upgrade infrastructure and strict planning rules. However, the market is evolving, attracting buyers from further afield (Asia and the Middle East) and from southern Europe, as recent heatwaves prompt some second homeowners to pivot northwards. Additionally, the appeal of a base in the French and Swiss Alps, goes beyond the lifestyle to low purchase and ownership costs, the opportunity for currency diversification, and the potential for any rental income to provide a hedge against inflation in the current climate as cited by buyers.

Kate Everett-Allen, head of global residential research at Knight Frank, shares: “The pandemic-induced Alpine mini boom is ending with a fizzle rather than a bang, as limited supply keeps a floor under prices in most markets. Across three key French resorts, listings are down 56% on average compared to before the pandemic, and this is set against a backdrop of robust demand. There are clear challenges ahead for ski resorts, not least climate change, the need to upgrade infrastructure and strict planning rules. But the market is evolving, attracting buyers from further afield (Asia and the Middle East) and from southern Europe, as recent heatwaves prompt some second homeowners to pivot northwards.”

Clarice Lau, head of sales, international project marketing at Knight Frank Singapore, adds: “An Alpine home may not top the list of most high-yielding assets for investors, but the growth of year-round tourism in the Alps, a shrinking pool of homes for rent, and a packed calendar of sporting and lifestyle events are boosting landlords’ revenue. The high proportion of cash buyers in the world’s top ski resorts means the higher interest rate environment has had little impact on their appetite for a ski home. Add in the transition to hybrid working, the renewed focus on health/wellness and accumulated savings during the pandemic years, and demand remains robust. For Asia Pacific, Niseko remains the top choice for skiing destination given its location proximity, world-renowned powdery snow, year-round resort, retail, world class restaurant amenities, and favourable dollar to yen exchange rate.”

Key findings from The Ski Report 2024

– Alpine Homes Sentiment Survey: As part of the Ski Property Report, Knight Frank has run its second annual Alpine Homes Sentiment Survey, which represents the views of over 320 Knight Frank clients, located across 34 countries and territories. Respondents include existing homeowners, prospective purchasers, and those with a passion for the mountains. Key findings include:

1. Buyer motivations are diverging. Both the proportion of buyers wanting a base purely for skiing and those just wanting a base to enjoy the mountains has increased year-on-year.

2. 72% of survey respondents say the resilience of a ski resort influences their decision on where to buy.

3. 52% of respondents are seeking a second home that they plan to rent out, up from 48% last year.

4. 78% of respondents say the energy efficiency of a home is important or very important to them, yet only 28% would be willing to pay a premium for such a home.

4. 60% of survey respondents expect the price of an Alpine property to rise in the next 12 months.

5. 39% of prospective buyers say the cost-of-living crisis has impacted the budget they will allocate to an Alpine home.

– Resilience & evolution: A number of resorts across the French and Swiss Alps are taking steps to develop their sustainability features and increase their long-term resilience in response to climate change. Some of the steps these resorts are taking include:

1. Linking up: Several resorts, such as those in Portes du Soleil and Four Valleys are linking up to offer multi-pass access, creating larger ski domains giving skiers access to more pistes.

2. Following the science: The Compagnie du Mont-Blanc is working with scientists to produce snow forecasts for the next three decades. Rocks will be removed, and new grass planted, which keeps snow intact longer, on the snow slopes.

3. Investing in green tech: Resorts have adopted renewable energy to power ski lifts and snow cannons in some capacity. Solar energy is now a staple on public infrastructure, and electric buses the norm in resorts such as Verbier and Val d’Isère. Gstaad has a waste centre in the valley that supplies heating for over half of the resort.

4. Greener fuel: The Compagnie des Alpes has committed to converting all of its 130 snow groomers to HVO fuel (hydrotreated vegetable oil manufactured from renewable and sustainable waste). Remaining carbon emissions will be stored in “carbon sinks” created through reforestation.

– Most popular Asia-Pacific ski destination – Niseko, Japan: Home to a population of around 5,000, Niseko is located on Japan’s northern island of Hokkaido, and a two-hour drive from Sapporo, the island’s largest city serves as the most popular Asia-Pacific ski destination. Domestic buyers make up around 70% of purchasers with Singaporean, Chinese mainland and Hong Kong buyers accounting for the remainder. Housing stock is mainly comprised of two to three-bedroom condominiums between 100 and 150 sqm in size with average prices between US$500,000 and US$1.5 million.

– Another popular Asia-Pacific ski destination – Queenstown, New Zealand: Located on the shores of Lake Wakatipu on New Zealand’s South Island, Queenstown is the country’s “adventure capital”. The average property price sits at around NZ$1.37 million (US$832,113) according to the Real Estate Institute of New Zealand. Prices increased 10% in the year to August 2023 and remain 56% higher than the national average. The National Party’s recent electoral win is expected to result in a reversal of New Zealand’s foreign buyer ban, but only for properties priced above NZ$2 million (US$1,214,764).

– Japan Ski home in the spotlight – Niseko Kyo, Japan: Nestled amidst a landscape of powdery white splendour, in the charming and vibrant village of Hirafu, located in Asia’s most popular ski destination, Niseko, the Niseko Kyo provides direct access to the Ace Family Lift with a ski-in ski-out approach. The Niseko Kyo serves more than just a luxury home, offering an elegant and alluring sanctuary for families and couples to head to as a ski retreat with utmost privacy surrounded by crisp alpine air and nature’s wonders. For more information of Niseko Kyo, please access the link here: https://international-residential.knightfrank.com.sg/2022/12/05/niseko-kyo-japan/.