You Asked Us – What are the Top 4 Significant Differences Between the Sapporo and Fukuoka Real Estate Markets

Invest in Japan Real Estate

Invest in Japan Properties

02 Jan, 2019 –

1.     Of the two markets, Sapporo provides higher rental yields. This is because property prices haven’t gone up there as significantly as they have in Fukuoka. Fukuoka prices on the other hand, have risen as fast as Tokyo between 2012-2016.

2.     Sapporo units tend to have a bigger floor-plan on average, so we more often find family-sized properties there that generate reasonable returns. In Fukuoka, floorplans are generally smaller, single type units. Larger family-sized units in Fukuoka are available but tend to rise in price with size more sharply due to the city’s smaller footprint, and therefore generate lower yields.

3. Vacancies take longer to fill in Sapporo especially during the cold months. In Fukuoka winters are milder and vacancies are easier to fill any time of the year.

4.    Returns in Sapporo can be as high as 8-9% net pre-tax for residential/mixed purpose buildings. Returns would rarely go beyond 6% net pre-tax for attractive locations in Fukuoka.

Although both cities have strong demand, Fukuoka has risen sharply in recent years, and is definitely the better profile of the two as far as population growth and modern governance are concerned, as well as better potential for capital growth. But you will find higher yield in Sapporo.

(Source – Priti Donnelly, Nippon Tradings International”, Pic – Fukuoka Floorplan/ “Nippon Tradings International“)

This entry was posted in Japan Real Estate and tagged , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.