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Foreigners fascinated with shopping for actual property in Japan usually deal with Tokyo and Osaka, for apparent causes, however these in search of a metropolis with rising inhabitants, a vibrant start-up financial system, and inexpensive costs may wish to contemplate Fukuoka.

Fukuoka is the capital of Fukuoka prefecture and sits on the northern shore of Kyushu. It affords a really livable, sub-tropical local weather, stunning surroundings, and a wealthy native tradition.

It additionally has a rising inhabitants, which is counter to the overall inhabitants development in most of Japan’s regional cities.

Rising inhabitants and dealing age inhabitants

From 2015 to 2020, Fukuoka had the second highest improve in inhabitants of any municipality in Japan, second solely to the Tokyo 23 Wards. In 2020, its inhabitants was 1,612,392 folks, a web achieve of 73,711 in comparison with 2015. Fukuoka’s working-age inhabitants can be rising.

In the identical interval, Japan’s inhabitants shrunk by about 0.7%, with a lot of this inhabitants drop occurring in Japan’s smaller cities and cities.

The Gateway to Asia and the “Silicon Valley” of Japan

Town of Fukuoka can be vying to turn out to be Japan’s reply to Silicon Valley.

In 2014, Fukuoka was designated by Japan’s central authorities a nationwide strategic zone for start-ups, which permits town to chop company taxes for brand new companies and to create a particular visa for overseas entrepreneurs. As a nationwide strategic zone, Fukuoka has additionally been capable of chill out metropolis planning guidelines to re-develop town middle.

In 2017, town renovated an old style in Tenjin, a central enterprise district, to create Fukuoka Progress Subsequent (FGN), a one-stop store for aspiring entrepreneurs.

As reported by the BBC: “Services embrace discounted workplace area, a prototyping lab, a start-up cafe the place consultants present free enterprise, authorized and accounting recommendation, and the World Startup Centre to assist overseas founders arrange in Fukuoka or native entrepreneurs develop overseas. There’s additionally a bar to lubricate the networking course of and an everyday schedule of talks, seminars and matching occasions to hyperlink start-ups with prospects and buyers.”

The Tenjin neighborhood can be present process a serious re-development with the purpose of constructing it right into a hub metropolis in Asia. Fukuoka’s location, being nearer to Seoul and Shanghai, than Tokyo, lends itself itself to being positioned as a serious regional enterprise and financial middle.

The “Tenjin Large Bang” re-development undertaking goals to considerably improve the quantity of workplace area dedicated to supporting Fukuoka as an Asian enterprise and expertise start-up hub.

By 2024, town plans to extend the quantity of workplace area in Tenjin to 757,000 sq. meters from the present 440,00-square meters by renovating present buildings and enjoyable ground space ratios (FAR) and to extend the variety of folks employed within the space by 2.4 occasions, from 39,900 folks to 97,100.

Reasonably priced costs

In comparison with shopping for within the Tokyo 23 Wards and even Osaka, Fukuoka is comparatively inexpensive.

In 2021, the average unit price of a newly constructed condominium sold in the greater Tokyo region hit a file excessive of ¥62,600,000 ($550,000 USD) in 2021, up 2.9% year-on-year. This quantity outstripped the earlier excessive reached in 1990 through the asset bubble period.

The costs of pre-owned condominiums in Tokyo have additionally been on a scorching streak. In December 2021, the typical gross sales worth of a pre-owned residence in higher Tokyo reached ¥41,160,000 ($358,000 USD) in December, a double digit year-on-year improve of 10.1%, and the nineteenth consecutive month of worth will increase.

The chart beneath exhibits how the costs of re-sale residences within the metropolis of Fukuoka evaluate to Tokyo.

Even for a comparatively newer property that’s lower than ten years outdated, a purchaser in Fukuoka can be a median gross sales worth that’s about 52% of that within the Tokyo 23 Wards.

For these in search of entry-level funding properties at cheaper price factors, Fukuoka affords the potential of shopping for with a lot much less start-up capital than can be required for central Tokyo.

In a comply with up article, we can even check out estimated rental yields, which can be important to know for these evaluating attainable returns in several cities and amongst completely different property varieties.

Beneath we give examples of properties at the moment out there on the market within the metropolis of Fukuoka.

High-floor 1K residence on the market in a superb location close to Hakata Station in Hakata Ward, Fukuoka. Please click on on the picture for the total itemizing and to ship an inquiry to the agent. Picture: ReMax Revo

Highlights: At present occupied with an estimated gross yield of 9.7%. Wonderful location, 15-min stroll from Hakata Station, a serious railway station within the metropolis  of Fukuoka. Additionally it is the biggest and busiest station in Kyushu and is a gateway to different cities in Kyushu for vacationers from Honshu. The Sanyo shinkansen from Osaka terminates at this station.

Fukuoka, Japan – March 6, 2013 : Folks at Hakata Station, the biggest and busiest station in Kyushu space. JR Hakata Metropolis is related on to Hakata Station, over 230 speciality outlets are within the shopping center. By way of iStock 459260367 Credit:winhorse

Worth: ¥4,000,000 ($34,000 USD)

Measurement and Format: 14.34 m² 1K studio residence

Ground: Eighth-floor in 8-story constructing

Land rights: Freehold

Yr Constructed: 1992

Vivid, well-maintained 1K residence on the market in a superb location close to Watanabe Dori Station in Chuo Ward, Fukuoka. Please click on on the picture for the total itemizing and to inquire on to the agent. Picture: Remax Revo

Highlights: At present occupied with an estimated web yield of 9.5%. Wonderful location, 10-min stroll from Watanabe Dori Station, one cease from Tenjin Minami Station. The Nankuma line is being prolonged to Hakata Station, with a deliberate in 2023. The Watanabe Dori neighborhood may be very central and is only a brief stroll (about 15-minutes) to Tenjin.

Worth: ¥5,200,000 ($44,000 USD)

Measurement and Format: 19.84 m² 1K studio residence

Ground: Seventh-floor in 10-story constructing

Land rights: Freehold

Yr Constructed: 1991

Highlights: Wonderful location, 8-min stroll from Hakata station on the subway Kuko line. Constructing has auto lock and bicycle parking. At present tenanted with estimated gross yield of 8.5%.

Worth: ¥8,500,000 ($72,000 USD)

Measurement and Format: 33.21 m² 1K studio residence

Ground: Eighth-floor in 10-story constructing

Land rights: Freehold

Yr Constructed: 1989

Thirteenth-floor 1LDK (1-bedroom) residence on the market in 14-story constructing in glorious location simply east of Tenjin neighborhood in Fukuoka. Please click on on the picture for the total itemizing and to inquire to the agent. Picture: ReMax Revo

Highlights: Wonderful location close to Nakanosu Kawabata station on the Fukuoka Metropolis subway Hakozaki line, 1 cease direct to Tenjin Station and two stops direct to Hakata Station. This can be a very central neighborhood close to Hakata Bay and the Tenjin space, Fukuoka’s western hub and is full of a various vary of retailers, bars, eating places, and nightlife. This property is at the moment tenanted with an estimated gross yield of 4.7%.

Worth: ¥19,800,000 ($167,000 USD)

Measurement and Format: 32.93 m² 1LDK (1-bedroom) residence

Ground: Thirteenth-floor in 14-story constructing

Land rights: Freehold

Yr Constructed: 2017

Twenty first-floor 2LDK (2-bedroom) residence on the market in 45-story tower mansion improvement in Higashi Ward, Fukuoka. Please click on on the picture for the total itemizing and to inquire to the agent. Picture: ReMax Revo

Highlights: This high-rise condominium is situated on a man-made island on the attractive waterfront of Fukuoka. Close by is a spa-resort, hospital and different life-style facilities. Additionally it is a short-walk from island metropolis park and the beachfront. From I Tower, it’s 12-minute drive to Fukuoka’s main downtown leisure areas of Tenjin and Hakata, in addition to Fukuoka Airport. This property has an estimated gross yield of 4.9%.

Worth: ¥27,800,000 ($236,000 USD)

Measurement and Format: 50.07 m² 2LDK (2-bedroom) residence

Ground: Twenty first-floor in 45-story constructing

Land rights: Freehold

Yr Constructed: 2016

ReMax Revo is a bilingual actual property agent primarily based in Hakata, Fukuoka and is the itemizing agent for the properties highlighted above.

They’re able to present service in Japanese and English and might help you discover properties appropriate in your personal use or for funding properties.

To contact them, please use this form!


Sure. You should purchase property in Japan no matter your nationality or nation of origin. There are additionally no residency necessities for getting actual property in Japan. Securing financing as a resident foreigner is extra sophisticated. For information on financing, please see Basic Requirements for Getting a Mortgage as a Foreigner in Japan

Please see our seminar web page for a present listing of seminars on: how to buy a home in Japaninvesting in Japanese real estate for beginnershow to apply for permanent residency in Japanhow to sell property in Japan, and rather more.

Please see this text for info on: Getting a property loan as a foreigner in Japan

Please see our step-by-step information: Guide to Buying Property in Japan

See how a lot you may borrow and your month-to-month funds in yen: Yen Mortgage Loan Calculator

For details about buy and brokerage charges: Breakdown of real estate purchase fees and taxes in Japan

Have to Know

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Can I legally rent out my home in Japan on AirBnB?

Repair reserve fund fees explained

Parking spaces in Japanese condominium buildings explained

Building your own home in Japan

Actual Property Japan is happy to supply free, no obligation value determinations for house owners of property in Japan. Please click on right here and fill out the shape: How much is my property worth?

7 situations when you should consider selling your investment property in Japan

What are the main factors affecting home sale prices in Japan in 2019?

 


Sources:

Ministry of Inside Affairs and Communication, Japan 2020 Census (in Japanese)

BBC, “Why Fukuoka is Japan’s Most Innovative City,” by Edd Gent, Eighth Might 2019 (English)

Metropolis of Fukuoka, “Tenjin Big Bang” overview, up to date December 13, 2021 (in Japanese)

Kenbiya, Manshon Report, January to March 2021 (PDF in Japanese)

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