Hokkaido Real Estate Shift: Why Furano is the New Niseko for Vacation Rental Investment

Furano, often termed as the “Second Niseko,” is becoming a highly popular investment destination among foreign investors.

Especially in terms of vacation rental investment in Furano, there are significant advantages.

①Securing land in Furano can lead to profits due to the rise in property values.
②The ability to cater to the lodging needs of tourists.

This article is tailored for those considering investing in Hokkaido.

Offering an in-depth explanation of the allure of Furano’s vacation rental investment.

We will also highlight the recommended districts for investment such as Kitanomine and Yamabe.

Niseko Today: Hokkaido’s Premier Investment Hotspot

When you think of real estate investment in Hokkaido, doesn’t Niseko immediately come to mind?

Niseko, renowned as a ski resort, witnesses substantial demand for real estate.

In fact, as per the data released by the National Tax Agency in July 2020, Niseko topped the charts for six consecutive years in terms of appreciation rate among the country’s standard residential lands.

This solidifies Niseko’s reputation as a popular investment destination nationwide.

However, the popularity of Niseko has created significant barriers for individual investors.

This is mainly because foreign corporations and investors have poured massive investments into the region for over 20 years.

As a result, land prices have soared dramatically.

In areas close to the Hirafu ski slopes, prices per 35.58 square feet (approximately 1 tsubo) have reached between $13,333 to $16,667.

These prices are comparable to those in Tokyo’s poshest residential areas like Minato Ward.

Due to high initial costs, the income gain from managing and operating in Niseko is merely around 1-2%.

For those considering personal investment in Hokkaido, achieving substantial returns from niseko vacation rental investment might be challenging.

Why Furano is the Next Big Thing in Vacation Rental Investment!

While Niseko might be a challenging spot for individual investors, there’s a lucrative opportunity waiting in Hokkaido.

That opportunity is vacation rental investment in Furano.

Here, we will explain the hidden charms of Furano and why vacation rental investment makes sense in this area.

The Hidden Gem: Furano

If you’re considering a niseko vacation rental investment, you might want to shift your gaze to Furano.

Here’s why.

1. Significantly Lower Land Prices than Niseko

2. High Growth Rate and Real Estate Demand in Furano

3. Year-Round Tourist Demand

We will provide detailed information on each of them.

1. Significantly Lower Land Prices than Niseko

Firstly, Furano boasts land prices that are substantially lower than Niseko.

Even in the popular resort area of “Kitanomine,” prices per 35.58 square feet (approximately 1 tsubo) exceed only about $3,333.

This is just a fraction, about one-third to one-fourth, of the prices on Niseko’s popular “Hirafu Main Street,” which can range from $10,000 to $13,333.

This means:

⑴Lower initial investments.
⑵You don’t need a high-end property to see substantial profits.

For first-time investors, Furano is an ideal location.

2. High Growth Rate and Real Estate Demand in Furano

Furano is witnessing a rapid increase in land prices.

Furano, often hailed as the “Second Niseko,” showcases a rapidly increasing land value, making it a prime target for real estate investment.

By investing early in Furano, investors stand to gain significant capital appreciation.

This surge in property prices is an indicator of the area’s high potential for profitability in real estate investment.

With its burgeoning status as a desirable location, Furano offers a compelling opportunity for those looking to secure robust returns in the real estate market.

Moreover, the real estate demand in Furano is soaring.

Globally renowned real estate company Zekkei opened condominiums ranging from $200,000 to $1.53 million, and they sold out within months.

3. Year-Round Tourist Demand

Furano, a leading tourist destination in Hokkaido, guarantees a steady flow of guests for your vacation rental property.

It’s a skiing mecca, drawing international tourists in the winter seeking its pristine powder snow.

From spring to early summer, attractions like “Farm Tomita” showcase mesmerizing lavender fields.

The lush greens of summer and the vibrant fall foliage ensure Furano remains a year-round attraction.

Before the global pandemic, Furano welcomed about 2 million tourists annually.

In 2019, the number of overnight stays by foreign tourists exceeded 150,000 nights, surpassing even Niseko.

Additionally, Furano’s rich tourism resources, like being the filming location for the beloved 40-year-old drama “From the North Country” and being one of Japan’s premier wine-producing regions, make it an irresistible destination.

With its affordability, rising demand, and year-round attractions, Furano is poised to offer lucrative returns for discerning investors.

Why Vacation Rental Investment in Furano is a Game-Changer!

While many are drawn to the allure of Niseko, there’s a hidden gem in Hokkaido that’s ripe for investment.

Why Choose Vacation Rentals Over Traditional Real Estate in Furano?

The answer is simple: vacation rentals in Furano can be more profitable than long-term rentals or selling houses.

Let’s delve deeper into the reasons.

1. High Tourist Demand Makes Vacation Rentals a Preferred Choice

In a nutshell, there’s a high demand from tourists seeking affordable stays in Furano.

Being a popular tourist spot frequented by international visitors, there’s a significant demand for short-term accommodations.

While Furano has a range of hotels and guesthouses in areas like Kitanomine, many of these accommodations can be pricey, often exceeding $250 per night.

This creates an opportunity for vacation rentals priced under $100 per night, catering to budget-conscious travelers.

2. Long-Term Profitability with Vacation Rentals in Furano

There are three primary reasons why vacation rentals can be more profitable in the long run.

First, with Furano’s land prices expected to rise, holding onto the land is more beneficial than selling it as a house, which might yield lower profit margins.

Second, in a place like Furano, where land and property values are anticipated to increase, it’s preferable to have flexible pricing.

Traditional rentals, once occupied, make it challenging to adjust rents.

Third, vacation rentals can command higher nightly rates compared to monthly rents.

Given Furano’s tourist appeal, it’s expected that vacation rentals will see a high occupancy rate, making them potentially more profitable annually.

Moreover, when your property isn’t rented out, it can double as a holiday home.

Imagine owning a property in one of Japan’s top tourist destinations, Hokkaido, and earning income when it’s not in use.

Sounds efficient, right?

3. Tapping into the Workation and Development Crew Demand

By operating a vacation rental in Furano, you can cater to:

⑴Business professionals on workations in Furano.
⑵Crew involved in Furano’s development projects.

⑴Catering to the Rising Workation Trend

With the recent shift towards remote work, over 40% of companies are now endorsing workations, where employees work remotely from tourist destinations.

Furano’s local government is even offering subsidies for workationers, covering up to $100 per night for stays exceeding four nights.

This suggests a growing number of business professionals will be visiting Furano for workations, presenting a golden opportunity for vacation rental owners.

⑵Meeting the Accommodation Needs of Development Crews

Given Furano’s distance from other major cities in Hokkaido, construction and development crews are likely to seek accommodations within Furano.

Vacation rentals, with their self-catering and laundry facilities, are ideally suited for these long-term stays, perfectly aligning with the accommodation needs of these crews.

Reference: “Survey Report on New Travel Styles” (Japan Tourism Agency)

Mastering Vacation Rental Investment in Furano: A Comprehensive Guide

If you’re contemplating starting a vacation rental investment in Furano, we’ve got some insider tips to share.

The Residential Area Around Furano Station: A Prime Choice

For those looking to dive into the Furano vacation rental market, the residential area surrounding Furano Station comes highly recommended.

Being in a relatively large city in Hokkaido, the station’s vicinity boasts supermarkets and other amenities, ensuring convenience.

Moreover, from Furano Station, it’s a mere 10-minute bus ride to the ski resorts, offering unparalleled access to the resort areas.

This strategic location allows you to cater to both tourists and professionals involved in Furano’s development projects.

For the High Rollers: Kitanomine District

If you’re aiming for premium returns, the Kitanomine District, lined with luxury hotels, is the place to be.

This district predominantly attracts affluent foreign visitors.

Offering vacation rentals here, especially with high-quality interiors and furnishings, can be a lucrative venture.

Hidden Gem: Yamabe District

A lesser-known but promising area is the Yamabe District.

It’s home to the “Yamabe Natural Park Sun Village,” a vast space that can accommodate over 100 people and offers facilities for camping, tennis, and golf.

Surrounded by nature, Yamabe is a hotspot for tourists seeking activities like hiking, cycling, and skiing.

Vacation rentals offer a unique experience, allowing visitors to immerse themselves in local culture and lifestyle.

Given the serene environment and abundant outdoor activities, Furano’s Yamabe District presents an enticing option for those wanting relaxation and adventure.

Why Furano is the Next Big Thing in Hokkaido’s Vacation Rental Investment Scene

Often referred to as the “Second Niseko,” Furano is drawing increasing attention from foreign investors.

With anticipated growth in development and land demand, Furano is emerging as a hot investment destination.

The benefits of vacation rental investments here include:

⑴Securing land in anticipation of rapid price appreciation.
⑵Tapping into the ever-growing tourist demand in the popular destination of Furano.

Despite its global popularity, Furano’s investment threshold remains relatively low, with land prices being less than a third of Niseko’s.

Considering a niseko vacation rental investment?

If you’re interested in vacation rental management or seeking consultation on vacation rental investment, please don’t hesitate to contact us!