Before investing in vacation rental properties for the first time in Hokkaido, we would like to give you a clear picture of the situation, problems, and the next steps you should take.
For those who want to research the market first, we will arrange for you to visit the sites in each area.
Working vacation environments surrounded by nature beaut
| Administrator | Number of Facilities | Notes |
|---|---|---|
| Companies with Satellite Offices | 86 | Japan's No. 1 |
| Administration Operating Trial Housing (as a regional development project to promote low-cost temporary housing) |
114 | - |
Source: Top: Ministry of Internal Affairs and Communications "Survey on the Establishment of Satellite Offices" (March 2021)
Bottom: Survey by the Hokkaido Prefectural Government (March 2020)
29 Graduate Schools, 39 Universities, and 4 Vocational Colleges
Numerous Affordable Industrial Parks
Number of Achievements in Collaborative Research with Major Universities in Hokkaido
| Region | Price |
|---|---|
| Hokkaido | 12,800 yen/㎡ |
| National Average | 34,332 yen/㎡ |
Source: Ministry of Education, Culture, Sports, Science and Technology
Support for Hokkaido Research Institutes
Number of Achievements in Collaborative Research with Major Universities in Hokkaido
| University Name | Number of Achievements |
|---|---|
| Hokkaido University | 636 |
| Obihiro University | 89 |
| Muroran Institute of Technology | 89 |
| Kitami Institute of Technology | 65 |
Source: Ministry of Education, Culture, Sports, Science and Technology
Spacious Life Stage
| Housing | |
| Region | Price(/㎡) |
|---|---|
| Hokkaido | 19,000 yen |
| Tokyo | 354,000 yen |
References: Ministry of Land, Infrastructure, Transpo rtation, and Tourism
| Transportatio | |
| Region | Commute time |
|---|---|
| Hokkaido | 61 min. |
| Tokyo | 94 min. |
References: Ministry of Internal Affairs and Communication
| Medical | |
| Region | No. of hospitals |
|---|---|
| Hokkaido | 9.2 |
| Tokyo | 5.7 |
Number of Facilities per Number of Hospital Campuses
Source: Ministry of Health, Labour and Welfare
| Recreation | ||
| Facility | No. of locations | Japan |
|---|---|---|
| Golf courses | 146 | 3rd |
| Ski slopes | 27 | 2nd |
| Beaches | 44 | 7th |
| Bicycle courses | 31 | 1st |
| Parks | 362 | 1st |
| Hot spring area | 243 | 1st |
| Hotels, accommodations | 2863 | 2nd |
| Vacation rentals | 598 | 4th |
References: Japan Tourism Association（Public Interest incorporated foundation）, “Tourism by the Numbers, 2021 Ed.”
*References: Promoting Investment in Hokkaido - International Business Division, Hokkaido Government
Many people visit Hokkaido in winter for winter sports at the best resorts such as Niseko, Rusutsu, and Furano, which are famous for their high-quality powder snow.
Real estate properties in world-famous resort areas in Hokkaido can be used for both vacation rental and the owner's own leisure activities.
Even though the number of foreign tourists visiting Hokkaido has increased by 430% compared to 10 years ago, there are not enough accommodations for a very large number of guests.
So, the vacation rental management in Hokkaido makes it possible to maintain a stable occupancy rate while meeting the needs of visitors to Japan with as little vacancy risk as possible.
Land prices continue to rise in Niseko, and the arrival of well-known brand hotels such as Park Hyatt and Ritz-Carlton has further strengthened market credibility as a place to own, live, invest, and develop.
In addition, it is expected that active redevelopment in Hokkaido and the Hokkaido Shinkansen line extension to Sapporo will support rising property values.
Even though Hokkaido's snow quality is world-class and its potential is equal to the world's top resorts, Niseko's real estate market price is about 1/3 of that of major ski resort areas in other countries.
And Furano and Rusutsu are even less expensive.
The resorts are in a growing market, so the possibility of price collapse is low, allowing you to commit to a low-risk investment.
JANKEN helps investors successfully enter the Hokkaido market through three unique strengths.
We will lead your vacation rental management to success by utilizing our expertise in vacation rental management cultivated in various areas in Hokkaido.
We are able to meet various needs of customers because we have built a network of local information in each area that is not available on the Internet.
We're connected with key industries like real estate, construction, and cleaning, essential for vacation rental management. This network lets us offer a seamless one-stop service.
Kukan Inc., the operator of JANKEN, is composed of members who have accumulated expertise through managing over 500 vacation rental properties. Our team operates throughout Hokkaido's resort areas, including Sapporo, Furano in the east, and Niseko in the west. We provide our specialized knowledge and experience to help make your vacation rental investment successful.
We formulate "highly accurate hypotheses" based on our expertise and knowledge cultivated in Hokkaido. We provide comprehensive consulting services to help investors achieve their goals. We formulate "highly accurate hypotheses" based on our expertise and knowledge cultivated in Hokkaido. We provide comprehensive consulting services to help investors achieve their goals.
Vacation Rental Investment Consulting
Comprehensive consulting for investment in vacation rental
Buying and Selling of Vacation Rental Real Estate and Listings
Brokerage services for the sale and purchase of land, buildings, etc.
Translation and Interpretation
The brokerage of vacation rental sales with foreign investors
Building Planning
Building plans suitable for real estate investment
Sales Strategy
Sales and advertising plan for developed properties
Development Management
Construction and development management reportJANKEN agents will make your dream come true.
Contact us for more information about investing in or Investment Tour.
As a ski resort where you can enjoy good quality snow in winter and a vacation spot where you can enjoy rafting in summer, Niseko is attractive all year round and attracts tourists from many countries, such as Australia.
In addition, real estate in Niseko is less expensive than in ski resort areas in other countries, and the land price increase rate is the highest in Japan. These facts make Niseko an attractive investment destination for Japanese and foreign investors.
By owning real estate in the world-famous resort area in Hokkaido, you can expect capital gains as well as income gains through the management of vacation rentals and other businesses.
Like Niseko, Furano attracts many tourists with its high-quality powder snow. In summer, tourists also visit Furano to enjoy the beautiful lavender fields.
As a result, at its peak, 153,000 foreign overnight stays per year are recorded in Furano (surprisingly, this record is higher than in Niseko).
Because of its attractiveness, land prices in the resort area and Kitanomine district have risen 34% in four years, while land and property prices in Furano are lower than those in Niseko.
In summary, Furano is an ideal area for investment in vacation rentals, where high income gains can be expected with a relatively inexpensive initial cost.
Please provide details such as "background," "goals," "area," "business model," "budget," and "desired start date" of your investment in Hokkaido.
If you have any current or past experience in vacation rentals or real estate investment, please include that information as well.
We will analyze past data and make proposals that are more likely to lead to successful results.
Our team of professionals with extensive knowledge of local business practices in Hokkaido will conduct simulations based on your inquiries and the information you share with us at the meeting, and propose an investment strategy and measures for you.
We will support you to accomplish your ideal by providing you with information that is not available on the Internet, such as information on the various needs and concerns in each area.
Based on the proposals made to investors, we will provide vacation rental investment services, such as comprehensive consulting for investment in vacation rentals, purchase and sale of vacation rental real estate, purchase and sale of land, brokerage of any deals, and architectural plans suitable for investment.
And, we will run each service according to the schedule and continuously operate and improve it through a PDCA cycle to achieve KPIs.
To calculate the return on investment (ROI) of an overnight stay property, we use our own simulations and other tools such as AirDNA, Metro Engine, etc.
Price, initial investment, monthly mortgage payments and expenses, price per stay, and occupancy must be clearly estimated.
There are merits and demerits to owning vacation rental real estate for investment. The merits of purchasing a vacation rental property are as follows:
∙ Monthly unearned income
∙ Investment for both cash flow and asset evaluation
∙ Higher cash flow, CoC, and ROI than long-term rentals
The demerits of purchasing a vacation rental property are as follows:
∙ The real estate market is not 100% predictable.
∙ Lack of vacancies and inconsistent income in vacation rental management
∙ Unexpected seasonal expenses may be needed
Often overlooked costs relating to vacation rental investment properties include:
∙ Real property taxes
∙ Fees for judicial scriveners
∙ Closing costs
∙ Unexpected property upgrades
∙ Unexpected damages caused by guests
∙ Property management related costs
∙ Homeowners and short-term renters insurance costs
∙ HOA Fee
JANKEN agents will make your dream come true.
Contact us for more information about investing in or Investment Tour.
