All sources have been thoroughly verified for credibility. Furthermore, a local real estate expert has reviewed and approved the final article.
Yes, the analysis of Fukuoka's property market is included in our pack
Thinking about investing in real estate in Fukuoka? You're not alone!
Many people are captivated by Fukuoka's Japanese allure and dream of owning a modern apartment or a traditional townhouse there.
Is it a wise investment, though? Are property prices increasing in Fukuoka? What is the current trend? Is it better to buy in the city center or near the bay? What are the property taxes? Where can you get a yield above 7%?
We know the answers.
The BambooRoutes team has done their homework and know this market well. As a matter of fact, we have condensed all our findings in a pack. Get it now.
In the lines below, we will share some of this knowledge.
How is the property market in Fukuoka?
What's happening with the property market? Some say it's going up, others say it's going down. Our approach is distinct—we rely on fresh data and stats to reach the correct conclusions.
Property types
In Fukuoka, you can find various types of properties for sale, including apartments, houses, condominiums, and commercial spaces.
Apartments are ideal for individuals or small families, offering convenience and often come with shared amenities. Houses provide more space and privacy, suitable for larger families or those who value independence. Condominiums combine elements of both apartments and houses, with a mix of private and communal facilities.
Commercial spaces are available for business ventures and investments, ranging from shops and offices to restaurants and warehouses.
Each property type offers unique features to cater to different preferences and needs.
Buying or renting?
(If you're buying for yourself and not to rent out)
If Fukuoka is your city of choice, you may be thinking about the advantages of buying versus renting a property in this vibrant Japanese city.
Usually, buying is better than renting in Fukuoka due to its strong economy and relatively low cost of living.
However, should flexibility be your priority, renting is the best option.
Property prices in Fukuoka
On average, according to the last data from Ministry of Land, Infrastructure, Transport and Tourism, Japan, purchasing a property in Fukuoka would cost you around $5,500 per square meter.
Naturally, things are quite spread out. An apartment in Hakata might have a different price per square meter than a house in Tenjin. We actually give you a more detailed breakdown in our pack for buying property in Fukuoka and in Japan.
To give you a sense of scale, it is 3.5 times less than the property prices in the center of New York.
Also, housing prices in Fukuoka are 33% cheaper than in Tokyo.
The most expensive neighbourhoods in Fukuoka are probably Nakasu, Tenjin, and Hakata, while the cheapest areas are likely to be outside the city centre.
Trends
First and foremost, we have to acknowledge that Japan remains, today, a very stable country. The last Fragile State Index that has been reported for this place is 31.
Keep this in view when pondering the viability of buying a property in in Fukuoka.
Also, according to the International Monetary Fund, Japan's economy is expected to increase by 4.4% in the coming 5 years, resulting in an average GDP growth rate of 0.9% (it's not much).
If you want to invest in real estate in Fukuoka it's a good thing because, usually, when the economy grows, people make more money, and this encourages them to invest in real estate, which drives up the demand and prices for properties.
Also, in Japan, the average GDP per capita has changed by -0.3% over the last 5 years. It's an alarming number.
Looking for more updated data? We've done a big-picture study to find out if it's a good idea to purchase property in Japan right now.
Buying property in Fukuoka
It can be difficult to buy property in Fukuoka due to the difficulty of obtaining reliable and up-to-date information. That's why we have created the pack to buy property in Fukuoka and in Japan.
Buying process
Within our pack, we've covered the entire buying process extensively. This includes a detailed breakdown of prices and yields based on the area, advice on negotiating prices, and information about obtaining a mortgage.
Now, we're providing you with a simplified version.
This is the step-by-step process to purchase a property in Fukuoka, Japan:
- Research the Fukuoka real estate market and determine your budget.
- Engage a licensed real estate agent with expertise in Fukuoka properties.
- Visit Fukuoka to view potential properties in person.
- Hire a Japanese lawyer and interpreter for legal assistance.
- Make an offer through the agent and negotiate the price and terms.
- Conduct due diligence, including checking the koseki (family registry) for property history.
- Sign a formal purchase agreement (Keiyaku) prepared by your lawyer.
- Obtain the "Shoeki Jiko Shomeisho" (Certificate of Registered Matters) from the local government.
- Pay a deposit, usually 10% of the property price, into the seller's bank account.
- Apply for a mortgage if required, providing necessary financial documents.
- Finalize the transaction at the local ward office or "City Hall" with the seller and complete the payment.
- Register the property at the Legal Affairs Bureau to transfer ownership officially.
Also, if you're not from the country, you might want to check our article on how to buy property as a foreigner in Japan.
Make a profitable investment in Fukuoka
Better information leads to better decisions. Save time and money. Download our guide.
Where to find a property
If you're looking for properties in Fukuoka, check out these websites:
- Housing Japan - Specializes in luxury real estate in Tokyo, offering services for buying, selling, managing, renting, and investing in prime areas.
- Wagaya Japan - Top-tier real estate information website specializing in rental and buying properties in Japan, catering to foreigners and offering a range of services and resources.
- Japan Home Finder - Find your new home in Fukuoka.
- Japan Property - Leading real estate portal in Japan, offering a wide range of properties for sale and rent, catering to both domestic and international buyers and investors.
- Real Estate Japan - Provides comprehensive resources for buying, renting, and investing in properties across Japan.
Also, know that we have included contacts of real estate agencies, property lawyers, moving companies, expats communities and more in our pack for buying property in Japan.
What you can get
As mentioned before, the average price per sqm in Fukuoka is $5,500. A 1-bedroom property with an area of 60 square meters would cost approximately $330,000, while a 2-bedroom property with an area of 85 square meters would cost approximately $468,000.
Of course, the price of properties can be influenced by their qualities and the area they're in.
Top neighborhoods in Fukuoka will be more expensive. In Hakata, a residence might cost you around $1,340,000, while an apartment in Tenjin could be priced at $580,000.
Of course, some areas are cheaper. You may find a residence in Sawara-ku for $540,000, or a residence in Minami-ku priced only at $350,000.
We give a more detailed pricing list in our full pack for buying property in Japan.
Common mistakes
Here are the main pitfalls when buying property in Fukuoka, Japan:
- Kanji-heavy documentation: Complex property contracts in kanji may pose challenges for non-Japanese speakers.
- Zoning restrictions: Strict regulations can limit property usage and renovations.
- Tatami flooring: Traditional tatami floors require specialized maintenance and may increase renovation costs.
- Age of buildings: Many properties are older, requiring careful inspection for potential structural issues.
- Tsunami risks: Fukuoka's coastal location exposes some areas to tsunami hazards, affecting property values.
- Annual property taxes: High rates for non-resident owners can impact overall investment returns.
- Land leaseholds: Some properties have short-term land leases, necessitating long-term considerations.
- Cultural nuances: Understanding local customs is crucial for successful negotiations and property management.
We don't want this to happen to you, so we have included a full checklist for your property investment in our pack of documents. Avoid these mistakes and save a lot of money.
Everything you need to know is included in our Japan Property Pack
Living in Fukuoka
Fukuoka is a vibrant and modern city with plenty of amenities, making it an ideal place to buy property.
Cost of living
Fukuoka is generally considered to be a relatively affordable city in Japan, with the cost of living being lower than Tokyo and other major cities. However, the cost of living in Fukuoka is still higher than most other cities in Japan.
Here are some examples to better understand the cost of living in Fukuoka:
- Monthly rent for a modern apartment in the lively Tenjin area: $900-$1,500.
- A bottle of local Fukuoka craft beer (e.g., Yame Craft Beer): $4-$7.
- Commuting using Fukuoka's Nishitetsu train line: $70-$100/month.
- Admission to the Fukuoka Tower observation deck: $5-$10.
- A cup of traditional Fukuoka-style Umegae mocha tea: $5-$8.
- Monthly membership at a Fukuoka-based karate dojo: $80-$120.
- Fresh fruits from Fukuoka's Yame region for a week: $20-$40.
- Traditional Fukuoka-style mentaiko (spicy cod roe) for cooking: $10-$15.
Neighbourhoods
We want to show information in a way that is easy to understand. So, we made a table that shows the different areas in Fukuoka. For yields, prices and rents, check our property pack.
| Neighborhood | Description | Strengths | Weaknesses |
|---|---|---|---|
Hakata | Hakata is a bustling district known for its historical sites and lively atmosphere, featuring the famous Canal City shopping complex. | Excellent transportation links, diverse dining options, and rich cultural heritage. | Can get crowded, especially during peak tourist seasons. |
Tenjin | Tenjin is the city's downtown area, offering a mix of modern shopping malls, entertainment venues, and traditional shrines. | Abundance of shopping and dining choices, vibrant nightlife, and proximity to major attractions. | Higher cost of living, limited green spaces. |
Daimyo | Daimyo is a trendy and fashionable neighborhood with charming narrow streets, boutique shops, and stylish cafes. | Unique shopping experiences, vibrant street culture, and a great place for young professionals and artists. | Can be expensive, limited parking options. |
Ohori Park | Ohori Park is a tranquil area surrounding a large pond, offering a relaxing environment and scenic walking paths. | Beautiful green spaces, peaceful atmosphere, and close to major parks and gardens. | Less bustling nightlife and limited shopping options. |
Nakasu | Nakasu is Fukuoka's entertainment district, known for its vibrant nightlife, street food stalls, and the iconic neon-lit Yatai (food stalls). | Exciting nightlife, delicious street food, and a lively atmosphere. | Can get crowded, noise levels at night. |
Sumiyoshi | Sumiyoshi is a residential area with a mix of modern apartment complexes and traditional houses, providing a peaceful living environment. | Quiet and residential, good amenities, and easy access to public transport. | Less vibrant nightlife and limited shopping options. |
Yakuin | Yakuin is a popular neighborhood with a laid-back atmosphere, offering a variety of shops, restaurants, and parks. | Charming local shops, relaxed ambiance, and convenient location. | Less touristy attractions and limited high-end establishments. |
Life in Fukuoka
Fukuoka is the largest city on Kyushu, the third largest island of Japan, and has a large and diverse economy. Its major industries include manufacturing, retail, finance, and tourism, and the city is home to many large companies, including Kyushu Electric Power, Mitsubishi Heavy Industries, and JR Kyushu.
What expats usually like the most in Fukuoka is the city's vibrant nightlife, with a variety of bars, clubs and karaoke spots, and the delicious local cuisine, such as Hakata ramen and mentaiko.
A good point for a property investor - Fukuoka has a mass rapid transit system called the Fukuoka City Subway.
Access to healthcare in Fukuoka is generally good, with a variety of medical facilities available throughout the city.
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Renting out in Fukuoka
For those aiming to buy property solely for renting out and earning income.
Long-term
Tenant Profiles in Fukuoka
According to the data reported by Wikipedia, the home ownership rate in Japan is 55%, which is not much.
It means that, if you decide to buy and rent out in Fukuoka, there will be a lot of people who can become your potential tenants.
If you decide to buy and rent out to long-term tenants, you should target young professionals, students, and expatriates looking to study or work in Fukuoka. Additionally, there is a high demand for short-term vacation rentals from travelers.
Here is a little summary table we've made for you.
| Property type and area | Profiles of potential tenants | What they are looking for | Expected monthly rent in $ |
|---|---|---|---|
Apartment in Hakata | Young professionals, tourists | City center living, accessibility | $600 - $1,500 |
House in Fukuoka City | Families, expats | Suburban comfort, space | $800 - $2,000 |
Studio in Tenjin | Students, singles | Urban lifestyle, convenience | $500 - $1,200 |
Condo in Momochi | Urban dwellers, expats | Beachside living, modern amenities | $700 - $1,800 |
2-Bedroom Apartment in Nishi | Families, working professionals | Residential area, facilities | $600 - $1,500 |
High-rise Condo in Sawara | Expats, young professionals | Modern living, city access | $800 - $2,200 |
1-Bedroom Apartment in Minami | Singles, young professionals | Central location, lifestyle | $600 - $1,400 |
Rental yields
As of today, rental yields in Fukuoka are floating around 2 or 3%. It's low. A good rental yield is typically considered to be around 7% or higher.
Properties located in areas with high demand from students and young professionals tend to have the best rental yields in Fukuoka, due to their close proximity to universities, amenities, and public transportation. Additionally, residential properties located in the city center, with easy access to the subway, are more desirable and therefore tend to have higher rental yields.
For further explanation and a more detailed breakdown, you can check the reports and analyses we have made.
Finally, be aware that rental incomes in Fukuoka are taxed at 20%, which is rather good.
Short-term
You could also decide to rent short-term to tourists, business travelers, and students visiting Fukuoka for a short period of time. Additionally, you could rent to people relocating to Fukuoka who need a place to stay while they search for a more permanent residence.
If you decide to go with that option, look for properties in Tenjin and Hakata areas. These are the most popular areas for short-term tenants due to their proximity to public transportation, shopping, and entertainment.
There are approximately 430 active Airbnb listings in Fukuoka, reflecting a dynamic short-term rental market. The average daily rate stands around $85.
You have the opportunity to generate a nice additional income stream then. Based on feedback from online testimonials and data analytics platforms such as AirDNA, Guesty, and Inside Airbnb, people who offer short-term rentals in Fukuoka can make around $1200 per month. Also, the average occupancy rate is estimated at 67%.
Is it worth buying real estate in Fukuoka then?
Buying property in Fukuoka can make sense if you're seeking a stable, affordable, and culturally rich living experience in Japan. The city's strong economy, lower cost of living compared to Tokyo, and projected economic growth provide a promising backdrop for real estate investment. If you plan to make Fukuoka your long-term home, purchasing property can be financially advantageous over renting.
The relatively lower property prices in Fukuoka, along with its political and economic stability, make it an attractive option for individuals or families looking for budget-friendly living.
However, if you're primarily looking for high rental yields or quick returns on investment, Fukuoka may not be the ideal choice. Rental yields in the city are relatively low at around 2-3%, falling short of the typical benchmark of 7% or higher for a good rental yield.
Additionally, buying property in Japan as a foreigner can be a complex and costly process, involving language barriers and legal requirements. Property taxes and the potential for tsunami hazards in some areas are additional factors that require careful consideration.
In summary, buying property in Fukuoka can be a smart move for those who value long-term stability and cultural richness, but it may not be the best fit for investors seeking high rental income or those unfamiliar with the intricacies of the Japanese real estate market.
Make sure you understand the real estate market in Fukuoka
Don't rush into buying the wrong property in Japan. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.
The content provided here is for informational purposes only and does not imply endorsement or advice. While we strive for accuracy, we do not guarantee the completeness or reliability of the information, including text, images, links, or other elements in this material. Following the content and analyses presented here does not assure specific outcomes. For guidance tailored to your individual circumstances, it is recommended to consult with a professional, such as a lawyer, accountant, or business advisor.