KUTCHAN, Hokkaido -- When Australian Ben Kerr first started a small real estate company in 2000 as a side business here at the Niseko ski resort, he never dreamed it would someday overshadow his tour guide business.</PARAGRAPH> <PHOTO> <TABLE WIDTH='250' ALIGN='RIGHT' BORDER='0'> <TR> <TD><IMG ALT='News photo' BORDER='0' SRC='../images/photos2007/nn20070308f1a.jpg' WIDTH='250' HEIGHT='188'/></TD> </TR> <TR> <TD><FONT SIZE='1'><B>Australian tourists have dinner and drinks at Jojo's Cafe &amp; Bar in Kutchan, Hokkaido, on a Friday night in February. </B></FONT></TD> </TR> <TABLE> </PHOTO> <PARAGRAPH>'At the time when I started the business, I thought it was just a hobby to help out some friends who were interested in buying,' said Kerr, managing director of Niseko Real Estate Co. 'That changed very quickly.'</PARAGRAPH> <PARAGRAPH>Kerr, 37, is one of three major foreign real estate developers behind the property boom in this southwestern Hokkaido town, which has a population of about 15,800.</PARAGRAPH> <PARAGRAPH>Since the boom accelerated in 2003, 40 condominium complexes and 20 foreigner-owned houses have been built here, including 30 in 2006 alone, according to the Kutchan municipal office.</PARAGRAPH> <PARAGRAPH>His new business, which caters mostly to Australian visitors, thrived even though Kerr had no experience as a real estate developer. He started out by brokering sales of used condos and houses to foreign buyers. He has since built and sold dozens of properties, including a 48-condo complex that opened in December.</PARAGRAPH> <PARAGRAPH>In his first year, he handled only about three properties, but that jumped to about 30 the next year and kept growing to the point where he had to hire another manager to run his tourism business.</PARAGRAPH> <PARAGRAPH>Most of the units at Niseko Real Estate are priced at around 40 million yen, with two or three handsomely furnished bedrooms and bathrooms, a spacious living room and kitchen.</PARAGRAPH> <PHOTO> <TABLE WIDTH='250' ALIGN='LEFT' BORDER='0'> <TR> <TD><IMG ALT='News photo' BORDER='0' SRC='../images/photos2007/nn20070308f1b.jpg' WIDTH='250' HEIGHT='188'/></TD> </TR> <TR> <TD><FONT SIZE='1'><B>Condominium owner Keith Zabell –

"When I started the business, people told me 'Ben, you're crazy, it's too expensive,' " he said. "But our buyers were saying the opposite: 'Ben, you're crazy. Why is it so cheap?' " suggesting properties in the area are still underpriced compared with overseas ski resorts.

After the 9/11 attacks in the United States in 2001, Australian skiers started coming to Niseko to hit its powder snow slopes and avoid any security concerns involved in going to the United States and Europe. In the past, overseas skiers tended to avoid Japan, believing it too expensive and too difficult because of the language barrier.

One reason Niseko attracts Australian skiers in particular is because the time differential with Japan is only an hour, and there are direct flights between Sapporo and major Australian cities, including Sydney, in the winter.