Prime Ski Property Report 2020 - Mountain Base

Page created by Roberta Meyer
CONTINUE READING
Prime Ski Property Report 2020 - Mountain Base
The Prime Ski Property Report provides a detailed assessment of
current market conditions across the French and Swiss Alps, as well
as a summary of market trends in global ski destinations

Prime Ski

                                                                      knightfrank.com/research
Property Report
2020
Prime Ski Property Report 2020 - Mountain Base
PRIME SKI PROPERT Y REPORT 2020        PRIME SKI PROPERT Y REPORT 2020

                         THE PRIME SKI
                         PROPERT Y REPORT
                         Now in its eleventh year, the Prime Ski
                                                                                                                                                                                                                                                                                                                              OVERVIEW
                         Property Report provides an overview of
                         prime market conditions across Knight
                         Frank’s key ski destinations: The French
                         Alps, The Swiss Alps, Aspen, Queenstown
                         and Niseko.
                                                                                                                                                                                                                                                                                                               Healthy rental demand, low mortgage rates and strong
                         DEFINITIONS                                                                                                                                                                                                                                                                                resort-led investment is supporting demand
                         Where we refer to Prime Property this equates
                         to the top 5% of each property market by                                                                                                                                                                                                                                                                            KATE EVERETT-ALLEN
                                                                                                                                                                                                                                                                                                                                           INTERNATIONAL RESEARCH
                         value. Prime markets often have a significant
                         international bias in terms of buyer profile.

                         Editor – Kate Everett-Allen
                         kate.everett-allen@knightfrank.com                                                                                                                                                                                                                                           V     isits to the French and Swiss
                                                                                                                                                                                                                                                                                                            Alps in the 2018/19 ski season
                                                                                                                                                                                                                                                                                                                                                         and this is attracting a new type of
                                                                                                                                                                                                                                                                                                                                                         tourist, one that rarely if ever ventures

                         Global Head of Research – Liam Bailey                                                                                                                                                                                                                                        increased by 5.3% and 10.6%                        onto the slopes. Resorts are evolving
                         liam.bailey@knightfrank.com                                                                                                                                                                                                                                                  respectively year-on-year, according               and most Alpine resorts are embracing
                                                                                                                                                                                                                                                                                                      to The International Report on Snow                this change.
                         Head of French Alps - Roddy Aris
                                                                                                                                                                                                                                                                                                      and Mountain Tourism. This growth
                         roddy.aris@knightfrank.com
                                                                                                                                                                                                                                                                                                      was reflected in the property market
                         Head of Swiss Alps -                                                                                                                                                                                                                                                         through strong rental demand, steady

                                                                                                                                                                                                                                                                                                                                                        5
                         Alex Koch de Gooreynd
                                                                                                                                                                                                                                                                                                      sales rates and strengthening prices in
                         alex.kdeg@knightfrank.com
                                                                                                                                                                                                                                                                                                      most resorts.
                         Head of Aspen Sales                                                                                                                                                                                                                                                             As a lifestyle asset, the purchase of
                         Jason Mansfield                                                                                                                                                                                                                                                              a ski home is often an emotive decision
                         jason.mansfield@knightfrank.com
                                                                                                                                                                                                                                                                                                      but investment rationale is becoming
                         Marketing – Sarah Guppy                                                                                                                                                                                                                                                      more compelling. Few purchase a ski
                         sarah.guppy@knightfrank.com                                                                                                                                                                                                                                                  home expecting double-digit capital
                                                                                                                                                                                                                                                                                                                                                         KEY TAKEAWAYS
                                                                                                                                                                                                                                                                                                      growth each year but a look at the
                         Media enquiries – Astrid Recaldin
                                                                                                                                                                                                                                                                                                      performance of ski homes over the last
                         astrid.recaldin@knightfrank.com                                                                                                                                                                                                                                                                                                                 Val d’Isere leads the
                                                                                                                                                                                                                                                                                                      decade reveals average price growth of
                                                                                                                                                                                                                                                                                                                                                                         Prime Ski Property Index
                         Design – Quiddity
                         quidditymedia.co.uk
                                                                                                                                                                                                                                                                                                      19% over the period, outperforming a
                                                                                                                                                                                                                                                                                                                                                                    1    with annual price growth
                                                                                                                                                                                                                                                                                                      number of tier one cities (see page 5).                            of 2.9% in the year to
                                                                                                                                                                                                                                                                                                          Most Alpine purchasers have a                                  June 2019
                                                                                                                                                                                                                                                                                                      defined tick list which includes; easy
                         © Knight Frank LLP 2019                                                                                                                                                                                                                                                                                                                         The impact of the EU
                         This report is published for general information only                                                                                                                                                                                                                        accessibility, low mortgage rates,
                         and not to be relied upon in any way. Although high                                                                                                                                                                                                                                                                                             referendum decision
                         standards have been used in the preparation of the
                         information, analysis, views and projections presented
                         in this report, no responsibility or liability whatsoever can
                                                                                                                                                                                                                                                                                                      hassle-free rental, stable or rising
                                                                                                                                                                                                                                                                                                      prices, market liquidity to facilitate
                                                                                                                                                                                                                                                                                                                                                                  2      was largely priced in to

                         be accepted by Knight Frank LLP for any loss or damage
                                                                                                                                                                                                                                                                                                                                                                         the Alpine resorts back
                         resultant from any use of, reliance on or reference to                                                                                                                                                                                                                       their future exit strategy and ideally a                           in 2016
                         the contents of this document. As a general report, this
                         material does not necessarily represent the view of                                                                                                                                                                                                                          currency advantage.
                         Knight Frank LLP in relation to particular properties or
                         projects. Reproduction of this report in whole or in part                                                                                                                                                                                                                        With this last point in mind, perhaps                          Due to negative interest
                         is not allowed without prior written approval of Knight                                                                                                                                                                                                                                                                                         rates, an increasing
                         Frank LLP to the form and content within which it                                                                                                                                                                                                                            now more than ever, British buyers
                         appears. Knight Frank LLP is a limited liability partnership
                         registered in England with registered number OC305934.                                                                                                                                                                                                                       need to keep one eye on currency shifts.                    3      number of Swiss
                                                                                                                                                                                                                                                                                                                                                                         residents are looking at
                         Our registered office is 55 Baker Street, London, W1U
                         8AN, where you may look at a list of members’ names.                                                                                                                                                                                                                         Capital Economics forecasts that with                              a ski home as a means of
                                                                                                                                                                                                                                                                                                      a general election now confirmed we                                preserving wealth
                         OTHER MARKET-LEADING KNIGHT                                                                                                                                                                                                                                                  may see Sterling jump to 1.30 or even
                         FRANK PUBLICATIONS                                                                                                                                                                                                                                                           1.35. For a €1 million chalet this could                           In 2008, around 50%

                                                                                         RESIDENTIAL RESEARCH

                                                                                         ASPEN INSIGHT
                                                                                                                                                                                                                                                                                                      result in savings of £93,000 or £121,000                    4      of our clients made their
                                                                                                                                                                                                                                                                                                                                                                         property available to rent,
                                                                                         2019
                                                                                                                                                                                                                                                                                                      respectively compared to current rates.
                              The global perspective on prime property and investment    FROM PRICE PERFORMANCE TO NEW HOTSPOTS, THE KNIGHT
                                                                                         FRANK AND DOUGLAS ELLIMAN TEAM TAKE THE PULSE OF ASPEN’S
                                                                                         PRIME RESIDENTIAL MARKET                                                                                                                                                                                                                                                        now it is close to 100%
                                                                                         HOW DOES THE ASPEN MARKET
                                                                                         DIFFER COMPARED TO A
                                                                                         YEAR AGO?
                                                                                         Home to around 6,000 properties, Aspen’s
                                                                                                                                               International buyers represent around 20%
                                                                                                                                               of purchasers with Australian, German and
                                                                                                                                               UK buyers accounting for more than 50% of
                                                                                                                                               overseas buyers.

                                                                                                                                               Despite the dollar’s strength, international
                                                                                                                                                                                                   STACEY WATSON
                                                                                                                                                                                                   Head of US Desk
                                                                                                                                                                                                   +44 20 7861 1062
                                                                                                                                                                                                   stacey.watson@knightfrank.com
                                                                                                                                                                                                                                                                                                          To stay relevant in a world of
                                                                                         property market has registered steady sales
                                                                                                                                               demand has not waivered over the last two
                                                                                         over the last 12 months. Sales activity in 2017

                                                                                                                                                                                                                                                                                                      changing consumer habits, ski resorts
                                                                                                                                               years with some buyers actually citing greater
                                                                                         was strong, with some 257 properties changing
                                                                                                                                               exposure to the US dollar as a motive behind

                                                                                                                                                                                                                                                                                                                                                                         Beyond the Alps,
                                                                                         hands, up from 170 in 2016.
                                                                                                                                               their purchase.
                                                                                         The Central Core or Downtown market                                                                        FIGURE 1
THE WEALTH REPORT 2019

                                                                                         represents around 48% of all sales, however,          HOW ARE LUXURY PRICES                                THE MARKET IN FIGURES
                                                                                         the highest value sales are still generated by
                                                                                                                                               PERFORMING?

                                                                                                                                                                                                                    202%
                                                                                         homes on Red Mountain.
                                                                                                                                               The financial crisis saw prices falter but in
                                                                                         Demand is currently strongest between
                                                                                                                                               the last eight years, prices have followed
                                                                                         US$3m and US$5m. In other price brackets,
                                                                                                                                               an upward trajectory, with the Aspen                             INCREASE IN POPULATION

                                                                                                                                                                                                                                                                                                      are reinventing themselves and in a                                Aspen Snowmass,
                                                                                         inventory levels are high meaning sellers need
                                                                                                                                               condo market outpacing the single family                               SINCE 1970
                                                                                         to consider their asking price carefully.
                                                                                                                                               homes sector.

                                                                                                                                                                                                                  $5.4M
                                                                                                                                               The price gap between median values in
                                                                                         HOW DO ASPEN’S
                                                                                                                                               Aspen and Snowmass has widened over the
                                                                                         NEIGHBOURHOODS COMPARE?                               last decade. However, with significant new
                                                                                         Aspen’s West End is facing strong demand as           investment planned in Snowmass and with
                                                                                                                                                                                                              MEDIAN PRICE OF A SINGLE
                                                                                         many buyers recognise its value compared              median condo values currently at around

                                                                                                                                                                                                                                                                                                                                                                  5
                                                                                         with Downtown Aspen. The West End is
                                                                                                                                                                                                               FAMILY HOME IN ASPEN
                                                                                                                                               US$520,000 we expect strong growth in the

                                                                                                                                                                                                                                                                                                                                                                         Whistler and Niseko are
                                                                                         located within a mile and a half of the city centre   next few years.

                                                                                                                                                                                                                  $2.7M
                                                                                                                                                                                                                                                                                                      number of cases successfully so. Several
                                                                                         which offers a plethora of activities, cultural
                                                                                         events and social venues on their doorstep.           WHAT IS YOUR OUTLOOK FOR
                                                                                         Red Mountain is still the cornerstone of the          THE MARKET?
                                                                                         Aspen property market with its median value                                                                          MEDIAN PRICE OF A SINGLE
                                                                                                                                               Although the Aspen resort dates from the                      FAMILY HOME IN SNOWMASS
                                                                                         currently at around US$12.1 million. Land
                                                                                                                                               1930’s, the city is constantly undergoing major
                                                                                         plots in this exclusive enclave are limited,
                                                                                                                                               regeneration and the bar looks set to be raised

                                                                                                                                                                                                                             50
                                                                                                                                                                                                                                                                                                                                                                         investing heavily in new
                                                                                         instead older properties are usually bought and
                                                                                                                                               even higher in the next few years.
                                                                                         remodelled to provide state-of-the-art living.
                                                                                                                                               A new US$56m W Hotel is due for completion
                                                                                         Starwood, with its larger lot sizes, open space

                                                                                                                                                                                                                                                                                                      resorts are emerging as hubs for luxury
                                                                                                                                               in Spring 2019, offering 11 branded Sky
                                                                                         and big sky views, is undergoing something                                                                                NO. OF BILLIONAIRES
                                                                                                                                               Residences, the Aspen Club is under
                                                                                         of a revival. New life is being breathed into it
                                                                                                                                               renovation, the Gorsuch Haus project will
                                                                                                                                                                                                                   RESIDENT IN ASPEN
                                                                                         by a younger generation that has identified its
                                                                                                                                               see the upgrading of Lift 1A and the new Lift

                                                                                                                                                                                                                $600M
                                                                                         relative value compared with Red Mountain
                                                                                                                                               One Lodge development will deliver 22 new
                                                                                         and the West End.

                                                                                                                                                                                                                                                                                                                                                                         resort villages, ski and
                                                                                                                                               residential units as well as a host of amenities.
                                                                                                                                               The strength of both the national and local
                                                                                         WHERE DO BUYERS ORIGINATE                                                                                            INVESTMENT IN SNOWMASS
                                                                                                                                               economies is driving wealth creation and
                                                                                         FROM?                                                 we expect active sales rates and steady                              BASE VILLAGE

                                                                                                                                                                                                                                                                                                      brands in their own right, whether
                                                                                         Buyers originate from all over the US but in          price growth over the short to medium-term,
                                                                                         particular from New York, Houston, Dallas, Salt       bolstered by the new investment projects in          Source: Knight Frank Research, Douglas Elliman/Miller Samuel,
                                                                                                                                                                                                    Private Jet Card comparison, Forbes
                                                                                         Lake City, Los Angeles and San Francisco.             the pipeline.

                                                                                                                                                                                                                                                                                                                                                                         non-ski infrastructure
                         The Wealth Report 2019                                         Aspen Insight 2019                                                                                                                                                                                            through their hotel, retail or spa offer,

                                                                                                                                                                                                                                                                               PAGE 2                                   PAGE 3
Prime Ski Property Report 2020 - Mountain Base
PRIME SKI PROPERT Y REPORT 2020                                                                                                                                                                       PRIME SKI PROPERT Y REPORT 2020

                                                                                                                                                                                                                                                          The Knight Frank Prime Ski Property Index results 2019

                                                                                                                                                                         19%
                                                                                                                                                                                                                                                                                                                                                  2.9%
               THE SKI INDEX RESULTS
                                                                                                                                                                                                                                                                    2.6%                                   2.4%                              Val-d'Isere
                                                                                                                                                                                                                                                                Chamonix                            Saint-Martin-
                                                                                                                                                                                                                                                                                                    de-Belleville

                                                                                                                                                                                                                                                                                             2.2%                              2.2%                             2.2%
                                                                                                                                                                                                                                                                                        Courchevel                       Courchevel                           Meribel
                                                                                                                                                                                                                                                               2.0%                       1550                             1650                               Village
                                                                                                                                                                                                                                                            Grimentz
                                        France out in front, Val-d’Isere its peak performer                                                                  The ten year price change of a prime ski
                                                                                                                                                                           property in the Alps

                                                                                                                                                                                                                                                                          1.8%                                           1.5%
                                                                                                                                                                                                                                                                     Courchevel                                        Verbier
                                                                                                                                                                                                                                                                       1850                      1.0%                                            1.4%
                                                                                                                                                                                                                                                                                              St Moritz
                                                                                                                                                                                                                                                                                                                                               Meribel

E      stablished in 2008, our unique
       Prime Ski Property Index tracks
                                                 local buyers in Switzerland, many keen
                                                 to find a home for their capital given
                                                                                                           to their relative value compared to other
                                                                                                           neighbouring resorts.                               A decade on: ski home vs                                                                               0.6%                      0.5%
                                                                                                                                                                                                                                                                                                                          0.8%
                                                                                                                                                                                                                                                                                                                        Klosters

                                                                                                                                                               global cities
                                                                                                                                                                                                                                                                    Gstaad
                                                                                                                                                                                                                                                                                              Zermatt                                            0.4%
the price of a four-bedroom chalet in            negative interest rates and the resulting                    For Verbier (1.5%) and Villars (0.4%)                                                                                                                                                                                             Villars
                                                                                                                                                               10-year % change (Q2 2009-Q2 2019)
a central location across key resorts in         cost associated with storing capital in                   the 2018/19 season was mixed. Verbier saw
the French and Swiss Alps. This year we          the bank.                                                 strong sales activity but it was limited to the     50%
have added Saint-Martin-de-Belleville,              Chamonix (2.6%) sits in second place                   CHF1 million – CHF3 million price bracket.                                                                                                                                   0.0%                  0.0%                  0.0%
                                                                                                                                                               40%                                                                                                                                                                Crans-
                                                                                                                                                                                                                                                                                       Davos                Megeve               Montana
Zermatt and Grimentz bringing our                this year and has a strong track record,                  Whilst Villars, arguably Switzerland’s best         30%
total to 18.                                     occupying one of the top four rankings                    all year resort, paused for breath following
                                                                                                                                                               20%
    A year ago the Swiss resorts of              for the last five consecutive years. With                 strong growth of 6% last year.
                                                                                                                                                               10%
Villars and Verbier led our Index                a permanent resident population of                           Of note this year is the disappearance
                                                                                                                                                               0%
but the leaderboard has changed in               nearly 10,000, Chamonix continues to                      of the outliers. Since 2015 the highest and
                                                                                                                                                               -10%
2019 with Val d’Isere now taking poll            offer an appealing combination – a lower                  weakest-performing resorts have been
                                                                                                                                                               -20%
position. This switch reflects a wider           market entry point and the Alps’ only                     separated by a minimum of 13 percentage
trend – a split between the French and           truly year-round destination.                             points, this year it has shrunk to just             -30%

                                                                                                                                                                        London

                                                                                                                                                                                 Paris

                                                                                                                                                                                                    Moscow
                                                                                                                                                                                                               KF Prime Ski
                                                                                                                                                                                                             Property Index
                                                                                                                                                                                                                    Geneva

                                                                                                                                                                                                                              Monaco

                                                                                                                                                                                                                                       St Tropez
                                                                                                                                                                                         New York
Swiss resorts – all six top rankings are            Two of the newcomers this year –                       three percentage points. Indeed, 2019
occupied by French resorts this year,            Saint-Martin-de-Belleville (2.4%) and                     represents the first year on record that not
most located in The Three Valleys.               Grimentz (2.0%) – have seen sales activity                one of the ski resorts tracked in our index
    With prime prices rising by 2.9%             and prices strengthen due primarily                       registered a decline in prime prices.
Val d’Isere’s lead can be explained by                                                                                                                         Source: Knight Frank Research                                                              Source: Knight Frank Research. Based on a four-bedroom chalet in a prime central location in each resort

a simple demand/supply imbalance.
The resort has seen a moratorium on
                                                    The ten year view
new development and strengthening                   Knight Frank’s Prime Ski Property Index, 2009-2019
demand – at 1,850 metres Val d’Isere                                                                                                                           How does a ski home compare to other investment assets?
boasts one of the longest ski seasons.                  The Knight Frank Ski Property Index (LHS)           Annual % change (RHS)                              1-year % change (Q2 2018-Q2 2019)

    The ranking of the Swiss resorts can             130                                                                                       18%

be attributed to the complexity of the               120                                                                                       12%
rules surrounding who can buy what,
                                                     110                                                                                       6%
and where. Some international buyers
                                                    100                                                                                        0%
are put off by the red tape – the Lex
                                                     90                                                                                        -6%
Koller and Lex Weber legislation – and                                                                                                                              Coins                                        Art                               Wine         Watches                KF Prime                  Furniture
                                                                                                                                                                   12.0%                                     10.0%                                 9.0%           2.0%                Ski Property                  1.0%
in some cases by the strong currency,                80                                                                                        -12%
                                                                                                                                                                                                                                                                                         Index                                              Cars
                                                                                                                                                                                                                                                                                                                                          -5.0%                      Jewellery
although for others looking to spread                70                                                                                        -18%                                                                                                                                        1.4%
their currency risk a Swiss Franc asset                    2009     2010       2011   2012   2013   2014   2015   2016    2017   2018   2019                                                                                                                                                                                                                          -7.0%
                                                                                                                                                               Source: Knight Frank Luxury Investment Index – Compiled by Knight Frank Research using data provided by Art Market Research
remains a key draw. The result has                  Source: Knight Frank Research                                                                              (art, coins, furniture, jewellery, stamps and watches), HAGI (cars) and Wine Owners. All data to Q2 2019 except stamps and coins (Q4 2018)

been an expanding market share for

                                                                      PAGE 4                                                                                                                                                                                                  PAGE 5
PRIME SKI PROPERT Y REPORT 2020                                                                                                                                                    PRIME SKI PROPERT Y REPORT 2020

                                                                           SPOTLIGHT                                                                                                                                                                              SPOTLIGHT
                                            ON THE FRENCH ALPS                                                                                                                                                                            ON THE SWISS ALPS

                                                                       We highlight the latest trends influencing
                                                                                                                                                                                                                                                              We highlight the latest trends influencing
                                                                             France’s prime ski hotspots
                                                                                                                                                                                                                                                                  Switzerland’s prime ski hotspots

                                                                                  Covering costs: Since we started the Ski                  gondola will be in service at Flegere                     Property as a store of capital: It                             is home to a significant number of large
             The French Alps                                                      Property Report in 2008, we have seen                     this season and the Charamillon lift in                   is almost five years since the Swiss                           chalets and here sales above CHF20                          The Swiss Alps
             Prime prices compared. € per sq m                                                                                                                                                                                                                                                                                   Prime prices compared. € per sq m*
                                                                                  many changes in the French Alps, from                     Le Tour is under construction. In The                     National Bank took interest rates into                         million are not unusual. The smaller
                                                                                  design and technology to planning rules                   Three Valleys, plans for the 2023 FIS                     negative territory and the base rate now                       resort of Grimentz by comparison,
                              26,000      Courchevel 1850                         and public investment, but arguably                       Alpine World Ski Championships                            sits at -0.75%. Although this has not                          where the bulk of the resort’s inventory                     Gstaad 31,500

                                                                                  the single biggest change has been the                    continue with €42 million earmarked to                    yet been passed on to consumers some                           is made up of second homes sees prices
                  19,500    Val-d'Isere                                                                                                                                                                                                                                                                                                               Zermatt 20,700
                                                                                  propensity of our clients to rent out their               upgrade lifts and gondolas along with                     banks are expected to begin charging                           typically below CHF10,700 per sq m
                                                                                  property. In 2008, around 50% of our                      new luxury hotels.                                        larger depositors in the near future. Not                      (€9,900 per sq m).
         15,800      Courchevel 1650                                                                                                                                                                                                                                                                                                                    Verbier 20,400
                                                                                  clients opted to rent-out or let their ski                    Demand flows: Since 2017 we have                      surprisingly, high net worth residents                            Education matters: What do
                                                                                  home, now it is close to 100%. Although                   seen the return of the domestic buyer                     keen to remain in the country to enjoy                         Gstaad, Villars, Crans-Montana, Verbier                                             St Moritz 18,900
         15,500     Courchevel 1550
                                                                                  not expecting a high yielding asset, most                 across the French Alps as confidence                      the privacy and security it affords, are                       and St Moritz have in common? Aside
         15,500     Meribel                                                       are looking to cover the maintenance and                  in the French economy picked up.                          looking more closely at property as a                          from being ski resorts, they are all home                                                          Villars 11,800
                                                                                  running costs as well as personal visits.                 Scandinavian buyers have increased in                     means of wealth preservation and one                           to private schools, in Villar’s case, ones
    14,100        Meribel Village                                                    From new homes to renovations:                         number in Chamonix and some Swiss                         which can potentially secure a gross                           with over 800 students. This means the                                                      Crans-Montana 11,400

                                                                                  New-build stock continues to attract                      buyers have been evident in the resorts                   yield of around 2.5%.                                          resorts have a large pool of permanent
   13,700      Megeve                                                                                                                                                                                                                                                                                                                                                  Klosters 10,900
                                                                                  interest due to the 20% VAT rebate and                    closest to Geneva.                                           The impact of legislation:                                  residents, not just the students but their
                                                                                  reduced transfer tax. The challenge                           In Courchevel, Chinese rental demand                  Depending on whether a Swiss resort is                         families that visit, who often go on to
 12,500      Saint-Martin-de-Belleville                                                                                                                                                                                                                                                                                                                                  Davos 10,900
                                                                                  is finding new stock given planning                       has surged and now accounts for most                      focused on encouraging more primary                            buy or rent, as well as the wider schools’
                                                                                  restraints which vary from resort to                      pre-Christmas demand. Two years ago                       residents or second homeowners will                            workforce. Le Regent School in Crans-
11,500     Chamonix                                                                                                                                                                                                                                                                                                                                                     Grimentz 9,900
                                                                                  resort according to their Plan Local                      there was no almost Chinese demand.                       have a significant bearing not just                            Montana recently opened whilst College
                                                                                  d’Urbanisme (PLU). As a result, this pool                 This is a trend to monitor if tourism is a                on the volume of sales but on the                              Alpin Beau Soleil in Villars has recently                   Source: Knight Frank Research
                                                                                                                                                                                                                                                                                                                                 * Exchange rate as at 30 June 2019
             Source: Knight Frank Research                                        of demand is being pushed back into                       sign of future property demand.                           property type available and the price                          extended its facilities.
                                                                                  the resale market with buyers opting                                                                                points achieved. Largely dominated by                             Working from home in the Alps:
                                                                                  to renovate existing properties instead,                                                                            primary residences, Gstaad for example                         With 4G now available across the Swiss
                                                                                  often extensively.                                                                                                                                                                 Alps and flexible working a growing
                                                                                     Futureproofing: Public investment                                                                                             MARKET DRIVERS
                                                                                                                                                                                                                                                                     phenomenon, more Swiss residents
                                                                                                                                                           MARKET DRIVERS
                                                                                  in a resort remains critical to buyer                                                                                                                                              are moving back to the mountains and
                                                                                  demand. The French resorts continue to                        1      N E W B U I L D A P P E A L – VAT R E B AT E      1              P RI VAT E S CH O OLS                        working from home – over a thousand
                                                                                                                                                            A N D LO W E R STA M P D U T Y
                                                                                  forge ahead by renewing and expanding                                                                                                                                              jobs are available in the Canton of
                                                                                                                                                2                                                        2             SA F E T Y – P E RS ONA L
                                                                                  their ski and non-ski infrastructure. In                                     MARKET LIQUIDITY                                                                                      Valais alone. With resorts investing
                                                                                                                                                                                                                         A N D E C ON OMI C

                                                                                  Chamonix, the Compagnie du Mont Blanc                                                                                             N E G AT I VE RAT E S – SWI S S
                                                                                                                                                                                                                                                                     heavily to expand their amenities and a
                                                                                                                                                3                 GOOD SUMMER                           3
                                                                                                                                                           R E N TA L O P P O R T U N I T I E S                  P ROP E RT Y I N T H E SP OT LI GH T
         FOR MORE INFORMATION CONTACT                                             has detailed the next phase of its €477                                                                                                                                            packed social and sporting calendar on                               FOR MORE INFORMATION CONTACT
         RODDY ARIS                                                                                                                                                                                                                                                                                                                                  ALEX KOCH DE GOOREYND
                                                                                  million, 40-year investment plan for the                     4                EASY AC CES S VIA                       4                 I N VE ST ME N T I N                       offer, a primary residence in The Alps
         (+)44 20 7861 1727                                                                                                                                                                                                                                                                                                                                      +44 20 7861 1109
                                                                                                                                                                G E N E VA A I R P O R T                               P UBLI C T RA N SP ORT
         RODDY.ARIS@KNIGHTFRANK.COM                                               Chamonix Valley. A new replacement                                                                                                                                                 is an increasingly viable option.                                          ALEX.KDEG@KNIGHTFRANK.COM

                                                                       BEST FRENCH WINTER RESORT FOR…                                                                                                                                                             BEST SWISS WINTER RESORT FOR…

                  BEST FOR                   FA M I L I E S W I T H YO U N G         FA M I L I E S W I T H                                  ADRENALINE                                                        BEST FOR                 FA M I L I E S W I T H        FA M I L I E S W I T H                                 ADRENALINE
                                                                                                                     APRES-SKI                                                NON-SKIERS                                                                                                                 APRES-SKI                                           NON-SKIERS
           W E E K E N D G E TA W AY                  CHILDREN                        T E E N AG E R S                                        JUNKIES                                                   W E E K E N D G E TA W AY      YO U N G C H I L D R E N        T E E N AG E R S                                       JUNKIES

               CHAMONIX &                     ME G E V E & SA I N T-                                                                                                                                                                                                                                                                                        GSTA AD & ST
                                                                                         ME R IB EL                 VAL D ’ IS E R E           C HAM ON IX                   C OU RC HE VE L            DAVO S & KLO STE RS                  VILL A RS                    VE RBIE R                       ZE RMAT T            VE RBIER
                 ME GEVE                   MA RT I N - D E - BE L L E V I L L E                                                                                                                                                                                                                                                                               MORI TZ

                                                                                                                  Folie Douce and La                                      Aquamotion, Hotel Le          Easy access from Zurich
              1 hour from Geneva                      Tree lined                   Ski park, ice rink, good                                The birthplace of off                                                                         Wide open slopes             Broad mix of winter               Numerous apres    Everything from base         Spas, high-end retail and
                                                                                                               Baraque and a wide range                                     K2 Palace, spas,             Airport which has good
           Airport – short drive time                open slopes                         bus system                                       piste skiiing in Europe.                                                                          for families                sports and 4G                    bars and clubs   jumping to heli-skiing        a broad range of sports
                                                                                                                 of bars and amenities                                     restaurants, shops                 flight options

                                                                                                          PAGE 6                                                                                                                                                                               PAGE 7
PRIME SKI PROPERT Y REPORT 2020                                                                                                                                                                            PRIME SKI PROPERT Y REPORT 2020

                                     THE ALPINE MARKET                                                                                                                                                                                                                                 FIVE TRENDS
                                                         IN FIVE CHARTS                                                                                                                                                                                                                 TO MONITOR
                                      Your guide to the indicators that matter, from purchase costs to drive                                                                                                                                                                              We handpick the key trends influencing
                                                      times how do the key resorts compare?                                                                                                                                                                                                       demand in the Alps

How do purchase, ownership and sales                                                                                  Which resort has the longest season length? (weeks)

                                                                                                                                                                                                                                                                                                                                 1
costs compare1?

     Purchase costs      Ownership costs (5 years)                                                                                                                   N OV         DE C      JAN     FE B         MAR        APR        M AY
     Sales costs (excl CGT)                                                                                           GSTA AD                                                                      2 5. 1

                                                                                                                                                                                                                                                             2
                                                                                                                      C H AMON IX                                                                 2 3. 1                                                                                                                                    ALPIN E FIT N ESS
18%
                                                                                                                      VAL D ' ISE RE                                                              22.1
                                                                                                                                                                                                                                                                                                                                   The fitness and wellness industry has
16%                                                                                                                   V E RB IE R                                                                 2 1. 3
                                                                                                                                                                                                                                                                                                                                   taken off in the last decade and the
14%
                                                                                                                      G RIME N T Z                                                                20.6                                                                     FAM ILY T IM E
                                                                                                                      Z E RMAT T 3                                                                20.3
                                                                                                                                                                                                                                                                                                                                   mountains have become the perfect
                                                                                                                                                                                                                                                                           Quality family time in today’s
12%                                                                                                                                                                                                                                                                                                                                base to pit yourself against the elements.
                                                                                                                      C OURC H E V E L                                                            20.1
                                                                                                                                                                                                                                                                  world is under threat. Whether due to
10%                                                                                                                   ME RIB E L                                                                  20.1                                                                                                                             Whether participating in an ultramarathon,
                                                                                                                      ST-MART IN -D E -B E L L E V IL L E                                         17 . 9
                                                                                                                                                                                                                                                                  long working hours, corporate travel,
8%                                                                                                                                                                                                                                                                                                                                 cycling in the Etape du Tour (The Tour
                                                                                                                      DAVO S 4                                                                    19. 3                                                           extra-curricular activities or the all-
6%                                                                                                                                                                                                                                                                                                                                 de France for non-professionals) or
                                                                                                                      K LO ST E RS 4                                                              19. 3                                                           consuming screen time, scheduling
                                                                                                                      ST MORIT Z                                                                  19. 3                                                                                                                            taking part in an Ebike festival, there is a
4%                                                                                                                                                                                                                                                                in uninterrupted family time remains a
                                                                                                                      C RAN S-MON TAN A                                                           18 . 9                                                                                                                           packed calendar of events. Some serious
2%                                                                                                                                                                                                                                                                challenge for many. Increasingly, buyers
                                                                                                                      ME G E V E                                                                  18 . 3                                                                                                                           enthusiasts have opted to buy a permanent
0%                                                                                                                    C OMB LOU X                                                                 18 . 3                                                          cite this a key motive behind purchasing
                                                                                                                                                                                                                                                                                                                                   Alpine base from which to train whilst
                 French Alps                    French Alps                      Swiss Alps2                          V IL L ARS                                                                   18 . 1                                                         a ski home because it enables the family
                   - resale                     - new-build                                                                                                                                                                                                                                                                        others opt for short or long lets.
                                                                                                                                                                                                                                                                  to spend more time together sharing a
                                                                                                                                                                                                                                                                  joint pursuit.
Resorts ranked by drive time from major airport
C O M B LO U X          MEGEVE                    VILLARS                    G S TA A D               COURCHEVEL                COURCHEVEL                                         COURCHEVEL                          Z E R M AT T
1HR (78KM)            1HR 9 (85KM)             1HR 24 (1 18KM)             2HR 3 (146KM)                  1550                      1650                                               1850                          2HR 41(229KM)

                                                                                                                                                                                                                                                                                                                                                               N ON - SKI E R A PPE A L
                                                                                                      2HR 5 (181KM)             2HR 8 (183KM)                                      2HR 13 (186KM)

                                                                                                                                                                                                                                                                                                                                                               Based on research undertaken by
G EN E VA                  CHAMONIX                         VERBIER                                   MERIBEL                  S T- M A R T I N - D E -       GRIMENTZ                 C R A N S - M O N TA N A       VA L D ’ I S E R E
                          1HR 10 (98KM)                  1HR 48 (158KM)                             2HR 5 (179KM)                 BELLEVILLE                 2HR 11 (192KM)              2HR 24 (188KM)              2HR 45 (221KM)                                                                                                                            our Courchevel office, around 35%
                                                                                                                                2HR 8 (179KM)
                                                                                                                                                                                                                                                                                                                                                               of visitors to The Three Valleys
                                                                                                                                                                                                                                                                                                     T ECH U P
ZURICH                          K LO ST E R S                       D AV O S                                                                                                                                            ST MORITZ                                                                                                                              are now non-skiers. It is perhaps
                              1HR 42 (136KM)                    1HR 58 (149KM)                                                                                                                                        2HR 48 (202KM)          M AXIN G OU T                                          Technological advances are helping
                                                                                                                                                                                                                                                                                                                                                               not surprising given the range of
                                                                                                                                                                                                                                              Resorts are joining forces to offer                    reduce the hassle of monitoring and
Which resort has the largest ski domain?                                                                                                                                                                                                                                                                                                                       activities on offer – from Michelin-
                                                                                                                                                                                                                                              access to multiple resorts or                          maintaining a second home. Whether
                                                                                                                                                                                                                                                                                                                                                               starred restaurants to high-end retail
                                                                                                                                                                                                                                              domains. Switzerland’s Magic Pass                      at a basic level – the installation of a
                                                                                                                                                                                                                                                                                                                                                               as well as waterparks and mountain
                                                                                                                                                                                                                                              now offers a season pass to 30                         webcam for security purposes, or a
                                                                                                                                                                                                                                                                                                                                                               bike trails. The Alps are catering for
                                                       600km                                                                    600km                                                             600km                                       resorts including Villars, Crans-                      more advanced use of Wi-Fi enabled
                                                       Courchevel                                                              Saint-Martin-                                                        Meribel                                                                                                                                                    a wider demographic, from young
                                                                            455km                                              de-Belleville                    455km                                                                         Montana and Grimentz, whilst in                        devices to switch the heating on
          412km                                                              Combloux                                                                            Megève                                                                                                                                                                                        to old, allowing multiple generations
           Verbier                                                                                        360km                                              (Espace Evasion)
                                                                                                                                                                                                                                              France the Mont Blanc Unlimited                        before you arrive. Or a concierge-
                                     300km                                (Espace Evasion)
                                                                                                            Zermatt                         300km                                 300km                                    307km
                                     Val-d'Isère                                                                                                                                                                           St Moritz                                                                                                                           of the same family to enjoy the
                        155km                                                             220km                           140km                Klosters                             Davos
                                                                                                                                                                                                  125km                                       Pass provides access to the                            style service that advises you or your
                                                           115km

                                                                                                                                                                                                                                                                                                                                                           3
                                                                                             Gstaad
                        Chamonix                           Grimentz                                                    Crans-Montana                                                                Villars                                                                                                                                                               landscape, with the slopes
                                                                                                                                                                                                                                              Chamonix Valley and beyond,                            tenants which lifts or slopes are least
                                                                                                                                                                                                                                                                                                                                                                          a perfect backdrop.
                                                                                                                                                                                                                                              including resorts across three                         congested, or apps that track your
The Alps sports calendar Selected events

                                                                                                                                                                                                                                                                                                 4
            600km              600km                                                                           600km                                         600km                                             600km                          countries. The Alps are mirroring                               speed and performance
                 EVENT                                                                   RESORT                                                                EVENT                                             RESORT
                        Courchevel 1850                          Courchevel 1650                             Courchevel 1550                         Saint-Martin-de-Belleville                                  Meribel
                                                                                                                                                                                                                                              trends in the US, offering skiers                               against the rest of your party.
  Dec                           A n d ro s Tro p hy                                    Va l T h o re n s                        Apr                   Pa troui l l e D e s G l a c i e rs                     Z e r m a tt To Ve r bi er
     412km                                                                        455km                                                                                               455km                                                   the chance to explore new pistes
  D e cVerbier        L a d i e s A l p i n e S k i Wo r l d C u p                    C o u rc h eve l
                                                                                   Combloux                                     Apr                       T h re e Va l l eys En duro Megeve                       C ourc h eve l

                                                                                                                                                                                                                                              5
  Dec              Cr i te r i u m D e L a Pre m i e re N e i g e                       Va l d ’ l s e re                       May                       MB Ra c e C ul ture Ve l o                        Me geve & C om bl oux                       each day of their holiday.
  Ja n                     S n ow Po l o Wo r l d C u p
                                                                                              360km
                                                                                          S t M o ri tz                         J un                 Ma ra th on Du Mon t Bl a n c                                  Ch a m on i x
  Ja n       B M W M e g eve W i n300km
                                   t e r G o l f C u p 20 20
                                                                                                Zermatt
                                                                                           M e g eve                             J ul
                                                                                                                                               300km                  300km
                                                                                                                                                  Tra i l Ve r bi e r S t B e r n a rd
                                                                                                                                                                                                                             307km
                                                                                                                                                                                                                      Ve r bi e r
                                           Val d’lsere                                                                                          Klosters                    Davos                                             St Moritz
  F eb                              W h i t e Tu r f                                      S t M o ri tz                     220km
                                                                                                                              J ul             J um pi n g In te r n a ti on a l D e Me geve                         Me geve
                                                                                                                                Gstaad
  Mar                      E n g a d i n S k i M a ra t h o n                      E n g a d i n - S t Mor i tz                 Aug            U l tra -Tra i l du Mon t-Bl a n c ( U T MB)                         Ch a m on i x
  Mar            F re n c h S k i J u m p i n g C h a m p i o n s h i p                 C o u rc h eve l                        Aug                   E urop e a n G ol f Ma s te rs                            Cra n s -Mon ta n a

           155km                                   115km                                                                                140km                                                   125km
Source: Knight Frank Research, Ski Club of GB, Onthesnow. Note: 1 Purchase costs includes transfer/property purchase taxes, registration fees and legal costs, Ownership costs includes municipal
           Chamonix
taxes, annual property taxes and wealth taxGrimentz                                                           Crans
                                            and sales costs cover agency fees. 2 Data for the Swiss Alps relates     Montana
                                                                                                                 to the                                              Villars
                                                                                                                        Canton of Valais. 3 Jakobshorn. 4 Sunnegga/Gornergrat

                                                                                                                  PAGE 8                                                                                                                                                                                                PAGE 9
PRIME SKI PROPERT Y REPORT 2020                                                                                                                                                              PRIME SKI PROPERT Y REPORT 2020

                                                                      SPOTLIGHT                                                                                                                                                                                  GLOBAL SKI
                                                                               ON ASPEN                                                                                                                                                   MARKETS MAPPED

                                                                  We highlight the latest trends influencing                                                                                                                                              How do the world’s major ski resorts compare?
                                                                         Aspen’s prime ski hotspots

                                                                               Investment ramps up: The Aspen                          with many originating from New York,
          Aspen                                                                and Snowmass resorts are investing                      Chicago, Texas, South Florida, Los                                                           Sweden                                                                  Norway
          Average prices compared
                                                                               heavily in their resorts and mountain                   Angeles and San Francisco, with an
          US$ per sq ft                                                                                                                                                                                                                             ARE
                                                                                                                                                                                                                                                                                                                        TRYSIL
                                                                               infrastructure. The new Snowmass Base                   increasing number opting to have a                                                                                          1.8m      228
                                                                                                                                                                                                                                                                                                                                        1.8m   213

                                                                               Village ($600m) is now open comprised                   base in Aspen to allow them to escape                                                                                                                                                                             Switzerland
                                                                                                                                                                                                                                                                                                            Austria
                               1,902      Red Mountain
                                                                               of the Limelight Hotel, 55 residential                  the summer heat. Overseas buyers                                                                                                                                                                                             THE FOUR
                                                                                                                                                                                                                                                                                                                                                                     VALLEYS
                                                                               units and a public events plaza with                    still account for around 20% of all                                                                                                                                            SKI ARLBERG                                                   3.0m        186
                             1,864       West End                                                                                                                                                                                                                                                                                       3.0m   254
                                                                               ice skating rink, new restaurants, bars                 purchasers with Australian, German
                                                                               and a community center. In Aspen,                       and UK buyers prominent.
                            1,795      Central Core
                                                                               the W Hotel opened this year, which                         Lift One Corridor boost for

             1,296    West Aspen                                               has 88 rooms and 11 branded Sky                         Downtown market: The new Lift
                                                                               Residences. The exclusive Aspen Club                    1A, which will be constructed by                                                                                                                                                                                  Japan
        1,094 East Aspen                                                       is under renovation, and the Gorsuch                    Aspen Skiing Company, is to be                         Canada                                                                                                                                                                 NISEKO,
                                                                                                                                                                                                                                                                                                                                                                    HOKKAIDO
                                                                               Haus (a new hotel development) and 1A                   positioned closer to the city centre                                WHISTLER
                                                                                                                                                                                                                                                                                                                                                                                   11.4m        547
765                                                                                                                                                                                                       BLACKCOMB
       Mclain Flats                                                            redevelopment on the west side of Ajax                  near Dean Street. The lift, will provide                                              4.3m       280
                                                                                                                                                                                                                                                                                                    Italy                                                China
                                                                               is also taking shape.                                   easier access off the mountain to
                                                                                                                                                                                                                 US                                                                                           SESTRIERE/
                                                                                                                                                                                                                                                                                                             SAUZE D’OULX                                        CHANGBAISHAN
          Source:Douglas Elliman                                                  Super-prime sales supercharged:                      the Downtown core area, potentially                                                                                                                                   /SAN SICARIO                                        INTERNATIONAL
                                                                                                                                                                                                                                                                                                              (VIA LATTEA)       4.8m    349                       SKI CENTER      13.2m        742
                                                                               The top end of the Aspen market was                     influencing values in the area west                                                      ASPEN
                                                                                                                                                                                                                                               25.0m       481
765                                                                            recharged in 2019 with 10 sales above                   of Monarch Street and surrounding
                                                                                                                                                                                                                                                                                                    France
                                                                               US$15 million recorded, up from six in                  Wagner Park.
                                                                               2018; but perhaps most notable was the                                                                                                                                                                                           THE THREE
                                                                                                                                                                                                                                                                                                                 VALLEYS
                                                                                                                                                                                                                                                                                                                                 8.6m    325
                                                                               jump in US$20 million+ sales which
                                                                                                                                                      MARKET DRIVERS                                                                                                                                                                                    New Zealand
                                                                               accelerated from one in 2018 to six in
                                                                                                                                                                                                                                                                                                                                                                 QUEENSTOWN
                                                                               2019. Wealthy US buyers are increasingly                                                                                                                                   NUMBER OF DOMESTIC SKIERS                             NUMBER OF SKI
                                                                                                                                                                                                                                                                                                                                                                  (CORONET

                                                                                                                                          1
                                                                                                                                                       STRONG INVESTMENT
                                                                                                                                                       IN SKI AND NON-SKI
                                                                                                                                                                                              KEY                   MAJOR SKI RESORT                      NATIONALLY (MILLIONS)                                 AREAS NATIONALLY*
                                                                                                                                                                                                                                                                                                                                                                    PEAK)          0.4m         23
                                                                               looking to luxury homes as a means of
                                                                                                                                                        INFRASTRUCTURE
                                                                               storing capital against a backdrop of
                                                                               heightened stock market volatility and                                THE ASPEN INSTITUTE –
                                                                                                                                                 H O M E O F T H E I N T E R N AT I O N A L
                                                                                                                                          2
                                                                               global trade tensions.                                                N O N P R O F I T T H I N K TA N K
                                                                                                                                                    WITH NUMEROUS EVENTS
                                                                                  Changing buyer profiles: Younger
                                                                                                                                                                                                                                                            P R I M E R E S I D E N T I A L M A R K E T S C O M PA R E D
                                                                               buyers, particularly tech millionaires                                 EASY AC CES S VIA ASPEN
                                                                                                                                          3              PITKEN AIRPORT                                                                                   W HI ST LE R                                            QUEENSTOWN                                         NISEKO
                                                                               and young families are increasingly
                                                                                                                                                                                                                                                           CA NA DA                                               NEW ZEALAND                                        JA PA N
      FOR MORE INFORMATION CONTACT                                             evident in Aspen – with the resort
      JASON MANSFIELD                                                                                                                     4
                                                                               home to the top ranked High School                                     APPEAL OF A USD ASSET                     ANNUAL % CHANGE IN
      (+)44 20 7861 1199                                                                                                                                                                                                                                      -1.3%                                                      6.1%                                         -0.5%
                                                                                                                                                                                                PRIME PRICES TO Q2 2019
      JASON.MANSFIELD@KNIGHTFRANK.COM                                          in Colorado. US buyers predominate
                                                                                                                                                                                                TOTAL PISTES (KM)                                              200                                                          40                                          51

                                                                                                                                                                                                MOST EXPENSIVE
                                                                                                                                                                                                                                                          Stonebridge                                              Kelvin Heights                                  Upper Hirafu
                                                                   BEST ASPEN NEIGHBOURHOOD FOR…                                                                                                NEIGHBOURHOOD

                                                                                                                                                                                                                                                   A new ski resort is being                        Non-resident buyers can purchase new-build                Chinese skiers as a share
                                                                                                                                                                                                                                         built 15 km north of Squamish. Comprised                     homes only in New Zealand. Residents,            of all skiers in Niseko increased from
                                                                                                                                                                                                GOOD TO KNOW
                                                                                                                                                                                                                                         of two villages with over 22,000 beds the                  Australians and Singaporeans can purchase          19% to 31% between 2014 and 2017
             FA M I L I E S W I T H                   FA M I L I E S W I T H                                                   ADRENALINE
                                                                                                                                                                                                                                          resort is due to open in the early 2040’s                    either re-sale or new-build properties                     according to Visa
                                                                                                APRES-SKI                                                          NON-SKIERS
            YO U N G C H I L D R E N                   T E E N AG E R S                                                         JUNKIES
                                                                                                                                                                                                KEY BUYER                                                                                                     New Zealand, Australia,                Japan, Singapore, Australia, Hong Kong,
                                                                                                                                                                                                                                                          Canada, US
                SNOWMAS S                              BU T T E R MI L K                           AJAX                        HIGHL AN D S                            AS P EN                  NATIONALITIES                                                                                                      China, US                                   Taiwan and Malaysia

           Excellent beginner runs,                                                     New W Hotel rooftop, Chair 9                                      Incredible dining and shopping
                                                 Less crowded, exceptional                                                Highlands Bowl is rite of
            2,300 sq m childrens’                                                      lounge at the Little Nell, Aspen                                       options, exceptional art        Source: Knight Frank Research, 2019 International Report on Snow & Mountain Tourism, Snowresort.info, GlobalData Wealth Insight
                                                       snowboarding                                                       passage for expert skiers
              adventure centre                                                          Mountain Club, Caribou Club                                            museum and galleries
                                                                                                                                                                                              *A Ski Area = A designated place where one skis (in some countries, these areas may not have lifts)

                                                                                                 PAGE 10                                                                                                                                                                                              PAGE 11
Les Glaciers, Courchevel 1650, France

                                        FIND YOUR
                        DREAM ALPINE PROPERTY

                                        iOS App available to download

                                           knightfrank.com
You can also read