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Is it safe to invest in real estate in Fukuoka? Benefits of owning real estate in Fukuoka

Fukuoka, the largest city in Kyushu, has historically developed as Japan's gateway to East Asia due to its geographical proximity to the Korean Peninsula and the Asian continent, resulting in similar travel times on routes between major domestic and Asian cities.

Not only among Japan's younger generation but also according to surveys of foreigners currently living in Japan, Fukuoka consistently ranks as a top choice for "cities to live in," demonstrating its enduring popularity. In fact, it is one of Japan's designated cities with the highest population growth in terms of both numbers and rates. As of August 2023, its population is approximately 1.64 million.

The convenience of transportation, well-developed commercial facilities, and highly liberal international business environment are driving the rapid development of Fukuoka. In 2018, Fukuoka was selected by Nomura Securities as a city with high potential for future development in Japan. In the latest Global City Competitiveness Ranking, Fukuoka ranks third among Japanese cities, following Tokyo and Osaka.

Since the end of 2012, land prices across Fukuoka have been rising for 12 consecutive years, surpassing Tokyo and Osaka in the rate of increase by 2023, becoming the top in Japan. Due to its highly international business environment, many foreign companies have entered Fukuoka, with office occupancy rates reaching 97%, securing its position as the best in Japan alongside the five central wards of Tokyo. Additionally, thanks to its excellent geographical location and distinctive tourist resources, the number of tourists to Fukuoka increases rapidly each year, with hotel occupancy rates ranking third in Japan, following Osaka and Tokyo.

Fukuoka: Asia's Business Gateway

In 2014, Fukuoka City was designated by the government as a "National Strategic Special Zone" to implement various regulations and institutional reforms to achieve the growth of the Japanese economy. This "National Strategic Special Zone" aims to become a base for many startups that create new values, products, and services and challenge the global market. To attract startup talent and companies from domestic and overseas, regulations and institutional reforms have been implemented for all aspects including employment, corporate tax system, and residency qualifications, which were previously high hurdles.

Especially in Fukuoka City, efforts are being made to support foreign entrepreneurs. Typically, for foreigners to operate a business in Japan, a residence status of "management or administration" is required, and the requirements for obtaining this status include the establishment of an office and employing at least two full-time employees or having a capital or total investment of over 5 million yen. However, with the Fukuoka Startup Visa, even if these requirements are not met, by submitting a business plan to Fukuoka City, receiving confirmation from Fukuoka City that the requirements will be met during the stay on the Startup Visa, and obtaining certification from the Immigration Bureau, it is possible to operate a business in Japan.

Fukuoka is seen as the growth engine of the Japanese economy, a city full of further development and business opportunities. More companies are expected to enter Fukuoka, and the results are beginning to show. Fukuoka City's tax revenue is reaching historic highs, reflecting its success.

Abundant Human Resources

• Find short-term accommodation at a share house, short-term apartment, dorm, etc.
• Fukuoka City ranks first among Japan's major cities in terms of population growth in both absolute numbers and percentage.
• Due to the influx of talented young people from across Kyushu, Fukuoka has the highest proportion of young people (aged 10-29) in its population among all major cities nationwide.
• It ranks third among Japan's major cities in terms of the number of university students and the number of international students coming from overseas.

Fukuoka boasts a highly developed transportation network.

With flights taking just 1 hour and 10 minutes to Seoul, 1 hour and 30 minutes to Shanghai and Tokyo, and 2 hours and 30 minutes to Taiwan, it enjoys an excellent location. Day trips to surrounding cities in East Asia are also feasible. Additionally, the highly developed transportation network, including railways and expressways, ensures high convenience in commuting.
*It takes approximately 1 hour and 30 minutes from Hakata Station to Haramizu Station, the nearest station to the TSMC Kumamoto factory.

Reasonable Costs

• Office average rent is 60% of Tokyo's.
• Average wage (information and communication industry) is 80% of Tokyo's.

Comfortable Living Environment

• 95% of residents feel comfortable living in Fukuoka.
• Fukuoka ranks first among Japanese cities in terms of comfort felt by businesspersons visiting Fukuoka for business trips.
• The average commuting time (one way) is 34.5 minutes, the shortest among major cities in Japan.
• Housing rents are about 60% of those in Tokyo, making them affordable.

Suitable as a Diversification Destination

• Japan is prone to earthquakes, but Fukuoka is an area with relatively few earthquakes.
• Fukuoka is also an area with relatively little damage from typhoons.

Three Recommended Areas for Real Estate Investment in Fukuoka

1. Hakata Area

Hakata area serves as the central hub of Fukuoka city, conveniently accessible for commuting and studying via Shinkansen, JR, subway, and bus terminals. One of the major attractions of this area lies in its cuisine. Fukuoka is renowned nationwide for its specialties such as Hakata ramen, motsunabe (offal hot pot), and mentaiko (marinated pollock roe). Around Hakata Station, there are shopping malls and restaurants gathering, becoming an integral part of life for both travelers and locals. Another distinctive feature of the Hakata area is the abundance of traditional festivals and events. The summer festival "Hakata Gion Yamakasa" is a representative example, with various events held throughout the year, enjoyed not only by locals but also by tourists. The charm of the Hakata area lies in the fusion of its culinary and traditional cultures.

2. Tenjin Area

The bustling district of Fukuoka City, filled with commercial facilities and transportation terminals, is known as the Tenjin Area. Along with Hakata, it represents one of the leading regions of Fukuoka City, where government offices, major corporate offices, and large commercial facilities gather, creating a vibrant atmosphere. Particularly, the Tenjin Underground Mall is the largest underground commercial facility in Fukuoka City, offering various shopping, dining, and entertainment options. Moreover, the Tenjin Area is also a hub of art and culture. With museums like Acros Fukuoka and Fukuoka Asian Art Museum, visitors can immerse themselves in the world of art. Parks such as Ohori Park and Nishi Park are scattered around, offering green spaces amidst the urban landscape, adding to the charm of the Tenjin Area.

3. Ohori Park Area

Just 3 minutes from Tenjin, the Ohori Park Area is a residential area surrounded by nature. You can enjoy tourist spots such as Ohori Park, Fukuoka Tower, and Marinoa City Fukuoka. Ohori Park blooms with flowers throughout the seasons, and the scenery reflected in the lake is beautiful. You can enjoy various activities such as boating while strolling around the lake, playing sports at facilities like baseball fields and tennis courts, and having fun at the amusement park. Additionally, Marinoa City Fukuoka is the largest outlet mall in Kyushu, offering enjoyable shopping experiences. Furthermore, the view from Fukuoka Tower is stunning, making this area popular among both locals and tourists. The Ohori Park Area is a place where you can enjoy various charms of Fukuoka while being away from the hustle and bustle of the city.

Apr 3, 2024