Hokkaido Tracks’ Paul Butkovich first came to Niseko for the powder, with no real estate experience. Almost a decade on, he’s turned that passion towards helping others build their dream ski homes, with real estate company Hokkaido Tracks.

How did you get into the real estate industry?

I literally 'skied' my way into the real estate industry. I was lucky enough back in 2005 to spend a week skiing up in Niseko with my now boss and good friend Simon Robinson, one of the founders of Hokkaido Tracks. It was after spending a week of skiing in fresh powder and socializing in this unique environment that I made a commitment to Simon to get back up here and start working with him. At the time I didn't have any real estate experience, just a passion for skiing and business.

What are some of your career highlights from your time in the industry?

I am still young (40yrs) and really with just under a decade of experience in the Japanese resort real estate market, I would say my career highlights are yet to come but probably the most satisfying highlight so far has been seeing the escarpment estate project sell out and watching the clients build their dream ski homes. 

What are the biggest issues facing the industry in Niseko at the moment?

The biggest issues we face are probably service levels and tourism development. At the moment this little ski town is seeing a significant property development boom but what we aren't seeing is an equal amount of tourism development or infrastructure development. This has us and investors concerned that the area may not be quite ready for the incoming market that is looking to invest into a year round resort.

Other issues for the region to develop further include human resources and recruitment. With a declining Japanese population and a rush to the big city centers, our regional area will struggle to meet the human resources demands all this new development will require.

How has the industry changed in the time you have been involved with it?

Since I started 10 years ago, the biggest change I have felt is probably the digital and online world of sales and marketing and also how people contact you and how you contact them. It's hard to keep up with the technology and now all the apps and ways to do a deal. It used to be simple with telephone, email and face to face but now with whattsapp, line, wechat, plus all the other social media platforms we are getting contacted in so many different ways, it's hard to keep up and when you are selling to various markets they have different expectations and ways to communicate.

What changes would you like to see over the next two to five years in the industry?

I would love to see Japan-based finance for wealthy non-resident foreigners come into the industry.  This is one component of our market that is lacking and is a huge opportunity for a Japanese bank to take part in.

What advice do you have for people who are just starting out in similar careers?

My advice for anyone interested in resort real estate sales and development is to just get started and don't stop at the first setback or failure.  Resort real estate is at the pointy end of the market, when it's on it can be extremely fun and lucrative but when the cycle turns you need to be gritty and patient.  At Hokkaido Tracks we learned the hard way back in 2008/9 when the realities of the global financial crisis hit and we were top heavy in land investment and forward commitments. We survived the down turn but it took lots of grit and persistence and patients as we waited for the world to wake up again and take notice of this beautiful region.

What do you believe is a unique factor of doing business in Niseko

The unique factor in Niseko is we have a very depressed domestic market with a very keen international market, it's strange that the local market just can't seem to see the value of this asset.

The other unique factor is that there are opportunities at all levels of the market for investors, lifestylers, business operators etc.. from luxury market through to the budget market you can see this area has a lot of growth to come. 

What is your favourite holiday destination in Asia?

Well, I live in one of them, whether you are an avid skier or cyclist Hokkaido is one of the best playgrounds year round in Asia and I would have to say the other place my family and I like to visit these days is the Okinawa region of Japan.  Japan is truly blessed with the best snow and some of the best beaches in the region. Highly recommend both a ski and beach holiday in Japan.

What’s your outlook for your sector/s for the next year?

The outlook is pretty good assuming the exchange rate (yen stays weak) stays in our favour.  We are expecting a significant amount of investment in the region in the run up to the 2020 Olympics. 

Where would your next purchase be?

If I was entering the market today I would be focusing in areas like Higashiyama, Hanazono or Moiwa. These areas have had limited private development to date and I expect with the recent announcement of the Park-Hyatt, Ritz-Carlton and the possibility of an Aman resort hotel coming to the area, these areas will be sure to see excellent capital growth and the necessary services and restaurants to cope with the incoming market out of Asia and, to be honest, around the globe. With major international hotel brands taking up positions in the area we are sure to see a lot more development and opportunities in the outlying resort areas, so I would focus my hard earned cash in those areas where as of yet still very little private development has occurred and land values are still within a reasonable price point for proximity to ski lifts. 

See some of Paul's and Hokkaido Tracks' listings

Kemushi, Niseko Japan - Idyllic retreat with golf course views

Tahoe Lodge, an idyllic retreat - Niseko, Japan

A powder hounds' paradise - Niseko, Japan