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What do the latest numbers reveal about Fukuoka’s real estate market? Are property prices on the rise, or are they stabilizing? Which neighborhoods offer the highest rental yields, and how does foreign investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in Fukuoka, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
1) Owner-occupied homes in Fukuoka make up 62%, just above the national average of 61%
Fukuoka boasts a 62% rate of owner-occupied homes, slightly above Japan's national average of 61%.
This higher rate is linked to Fukuoka's impressive economic growth in recent years. The city has become a hub for start-ups, creating numerous job opportunities and attracting a younger, dynamic crowd. This influx of people has naturally led to a rise in homeownership as more individuals settle in the area.
Another appealing factor is Fukuoka's affordable housing prices compared to other major Japanese cities. This affordability makes it an attractive option for potential homebuyers who are looking for a balance between cost and quality of life. The combination of job availability and reasonable housing costs has made buying a home in Fukuoka a smart choice for many.
Moreover, the city's vibrant economy and lifestyle have contributed to a steady demand for housing. This demand has not only kept the real estate market active but also encouraged more people to invest in property, further boosting the rate of owner-occupied homes.
Fukuoka's unique blend of economic opportunity and affordable living has created a thriving real estate market. This environment supports a higher rate of homeownership, as more people are drawn to the benefits of living and working in such a dynamic city.
In summary, Fukuoka's strong employment prospects and cost-effective housing are key factors driving its higher homeownership rate. The city's appeal continues to grow, making it a prime location for those looking to invest in property.
Sources: Statistics Japan, Fukuoka Now, Real Estate Japan
2) Foreign residents made up 18% of new tenants in Fukuoka’s rental market in 2024
In 2024, foreign residents made up 18% of new tenants in Fukuoka's rental market.
Fukuoka's rental market has been quite stable, with only minor changes in rents and vacancy rates. For instance, during the first quarter of 2024, the vacancy rate was 4.9%, and the average rent per tsubo saw a slight increase. This stability makes it an attractive option for international tenants looking for reliable housing options.
International tenants have already been a noticeable part of the market. According to Miyoshi Real Estate, about 10% of their leases were with people from overseas. This indicates a significant, though not dominant, presence of foreign tenants, showing a growing trend in the area.
Fukuoka's regulatory environment is quite lenient regarding short-term rentals, which likely attracts more international visitors. This leniency might encourage some visitors to stay longer, increasing the number of foreign residents in the long-term rental market.
With a stable market and a welcoming regulatory environment, Fukuoka is becoming a hotspot for international tenants. The combination of these factors has contributed to the 18% of new tenants being foreign residents in 2024.
Sources: Miyoshi Real Estate Co., Ltd., Property Market Trends | 1Q 2024 - Mitsui Fudosan Realty, Fukuoka, Airbnb Market Statistics & Data, Japan - Airbtics
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Japan versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
3) Homeowners in Fukuoka spent an average of ¥1.2 million on renovations in 2024, up 10% from the previous year
In 2024, homeowners in Fukuoka spent an average of ¥1.2 million on renovations, marking a 10% increase from 2023.
This rise is partly due to increasing costs for exterior work in the area. For example, tasks like parking lot construction and gate installation saw costs jump from ¥220 million in 2023 to ¥250 million in 2024.
Specific renovation tasks, such as wallpaper replacement, also play a role in the overall expense hike. The cost for replacing wallpaper in a single room ranges from ¥4,000 to ¥6,500, while doing an entire house can set you back between ¥45,000 and ¥90,000.
These figures highlight a broader trend of rising renovation costs, which can be a crucial factor for potential property buyers to consider. Understanding these expenses can help in budgeting for future home improvements.
Moreover, the increase in renovation spending reflects a growing interest in home upgrades, possibly driven by a desire for more modern and comfortable living spaces. Investing in renovations can significantly enhance property value and appeal.
For those looking to buy property in Fukuoka, it's essential to factor in these renovation costs, as they can impact overall investment. Being aware of these trends can aid in making informed decisions.
Sources: Rehome Navi, Note, Curama
4) In 2024, the average monthly maintenance fee for condos in Fukuoka was ¥12,000
In 2024, condominium owners in Fukuoka paid an average monthly maintenance fee of ¥12,000.
Maintenance fees in Japan typically cover the upkeep of common areas, utilities, and insurance. On average, the monthly management fee across Japan was about ¥10,661, which helps set a baseline for these costs. This means Fukuoka's fees are slightly above the national average, reflecting local conditions.
Location and the age of the building play a crucial role in determining these fees. Older buildings often demand more maintenance, which can drive up monthly costs. While specific data for Fukuoka isn't detailed, these factors likely contribute to the higher fees compared to other regions.
Fukuoka's real estate market is unique, with its own set of challenges and benefits. The city's vibrant economy and growing population might influence these costs, as demand for well-maintained properties increases. Regional differences in maintenance fees are common, and Fukuoka's slightly higher fees could reflect its dynamic urban environment.
Understanding these fees is essential for potential buyers. They not only cover basic maintenance but also ensure the property's long-term value. Investing in a property with higher fees might mean better amenities and a more attractive living environment, which can be a significant advantage.
Sources: Real Estate Japan, Real Estate Japan
5) Rental yields for homes in central Fukuoka range from 4.5% to 5.8%, surpassing many other major Japanese cities
In central Fukuoka, rental yields for residential properties range between 4.5% and 5.8%, outpacing many other major Japanese cities.
Fukuoka's real estate market is thriving due to strong demand and stable market fundamentals. According to Savills Research, the city saw a 17% increase in average rent from 2016 to 2021, with occupancy rates consistently above 96%. This high demand and low vacancy rate make Fukuoka an attractive market for investors.
Jones Lang LaSalle (JLL) points out that Fukuoka's steady population growth and strong purchasing power further bolster its real estate market. The city’s low office vacancy rates and rising rents indicate a tight market, which can drive up rental yields for residential properties.
The Japan Real Estate Institute highlights that Fukuoka's multi-family expected cap rates have compressed significantly. This suggests that yields are relatively high compared to cities like Tokyo, where yields hover around 3.9%.
Sources: Global Property Guide, Jones Lang LaSalle, Savills Research
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6) Cap rates for residential properties in Fukuoka are about 4%
Investing in Fukuoka's residential properties offers a cap rate of around 4%, making it a stable choice.
In 2023 and 2024, Fukuoka's real estate market thrived with high demand and stable economic conditions, drawing in investors. The Fukuoka REIT Corporation's move to acquire a property at a cap rate of 4.4% in 2024 shows strong market confidence, slightly above the typical 4% rate.
This 4% cap rate serves as a reliable benchmark, balancing risk and return in a way that appeals to investors. It reflects a market where returns are predictable, yet attractive enough to encourage investment.
Fukuoka's real estate scene is marked by a steady economic environment, which supports this cap rate. Investors see this as a sign of a healthy market, where their investments are likely to yield consistent returns.
With these factors in play, the 4% cap rate is not just a number but a reflection of market stability and investor confidence. It indicates a well-balanced investment landscape.
For those considering property investment in Fukuoka, this cap rate suggests a promising opportunity in a thriving market.
Sources: Fukuoka REIT Corporation Acquisition, Real Estate Trends in Japan
7) Chikko 3-chome, Chuo Ward has the highest residential land value at ¥590,000 per square meter
In Chikko 3-chome, Chuo Ward, the residential land value is ¥590,000 per square meter.
This area is part of Fukuoka City, where land values vary significantly across different regions. Chikko 3-chome stands out due to its strategic location, which is a key factor in its high land value.
Areas like Chikko 3-chome, with high demand and excellent accessibility, often see higher land prices. Being near major transportation hubs or commercial centers makes these locations particularly attractive.
The detailed land price map for Fukuoka City's Chuo Ward ranks locations by their land values, and Chikko 3-chome's top ranking indicates strong demand for residential properties in this area.
Fukuoka City has been experiencing a dynamic real estate market, with certain areas like Chikko 3-chome becoming hotspots due to their prime location and amenities.
Investors and potential homeowners are drawn to Chikko 3-chome because of its proximity to key urban features, making it a desirable place to live or invest.
Source: Tochidai.info
8) Fukuoka City’s population has grown by over 10,000 residents annually for the past three years
Fukuoka City is thriving, with over 10,000 new residents each year for the past few years.
Thanks to its vibrant economy and welcoming business environment, Fukuoka stands out among Japan's regional cities. People are drawn here by the affordable living costs and abundant job opportunities, making it a magnet for newcomers.
The city's age structure is another key factor. Fukuoka boasts a high proportion of working-age individuals, which fuels its economy and attracts even more residents. This dynamic mix keeps the population on the rise.
Fukuoka's appeal is further enhanced by its lifestyle offerings. The city combines urban convenience with a touch of nature, offering a balanced life that many find irresistible. This unique blend is a major draw for those seeking a new home.
Moreover, Fukuoka's strategic location plays a role. Positioned as a gateway to Asia, it offers easy access to international markets, making it an attractive hub for businesses and individuals alike.
With these elements in play, Fukuoka continues to see a steady influx of people, maintaining its growth momentum. The city's ability to attract and retain residents is a testament to its enduring appeal.
Sources: Ministry of Internal Affairs and Communications, Fukuoka Foreign Language College
We have made this infographic to give you a quick and clear snapshot of the property market in Japan. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
9) Fukuoka City's priciest residential areas are all in Chuo Ward
Chuo Ward in Fukuoka City is now a hotspot for luxury residential properties, especially condos.
This area is buzzing with commercial activity, which naturally drives up property prices. In 2023, resale condo prices in Chuo Ward jumped by 25.7% compared to the previous year, reaching an average of 36.8 million yen, or about $240,000. This surge is mainly due to the rising costs of new condos, influenced by higher land and construction expenses, which also pushed up the resale market.
Within Chuo Ward, places like Ohori Park and Yakuin are particularly sought after. Properties here, less than ten years old and over 100 square meters, are selling for over 100 million yen, or $650,000. This indicates that affluent buyers and investors are especially drawn to this area.
Chuo Ward's appeal is not just about the properties themselves but also the lifestyle it offers. The area is known for its vibrant culture, excellent dining options, and proximity to major business hubs, making it a desirable location for both living and investment.
For those considering buying property in Fukuoka, Chuo Ward stands out as a prime choice. Its combination of luxury, convenience, and potential for appreciation makes it a top contender in the real estate market.
Sources: Tokyo Portfolio, GaijinPot Apartments
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.
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