Guide to owning your first property in Hokkaido

Hokkaido, Japan’s northernmost island, is renowned for its stunning natural beauty, vibrant seasons, and unique lifestyle. Whether you’re drawn to the bustling city of Sapporo, the ski resorts of Niseko, or the serene landscapes of Furano, owning a property in Hokkaido can be a rewarding investment. This guide will walk you through the essential steps and considerations for purchasing your first property in this enchanting region.

Understanding the Market

The real estate market in Hokkaido offers a diverse range of properties, from luxury homes and ski chalets to cozy apartments and traditional houses. Popular areas like Sapporo and Niseko tend to have higher property prices due to demand, while regions like Furano offer more affordable options.

Some of you may be wondering if in fact Japan offers free houses? Japan has over 9 million unoccupied homes known as “akiya” and that includes Hokkaido. Well, yes, to a certain extend you basically only purchase the land which comes with a very old house. More often than not, these houses are in a dilapidated condition which requires a lot of money or effort or both to restore it to a living condition.

Secondly, Japan has been in a depopulation crisis since 2010s. Currently, there are about 35% of Japan’s population which are over the age of 60. Why does this matter? This means most township other than the big cities like Tokyo and Osaka are actually shrinking. So, you may want to take this factor into consideration when purchasing your property in both Hokkaido.

Setting Your Budget

Before diving into property listings, it’s crucial to establish a clear budget. Consider all costs involved, including the purchase price, taxes, maintenance, and potential renovation expenses. It’s also wise to factor in currency exchange rates if you’re buying from overseas.

Once you have a budget and narrow down your selections to a few potential locations, it will be definitely easier to look for a property within your desired price point.

Finding the Right Property (and agent!)

English speaking agents are far and few between in Hokkaido other than the few famous area like Niseko and Sapporo. Getting a knowledgeable agent could really help you not only in securing a property but also ensuring you are getting the right advice before, during and after purchase.

We recommend trusted real estate agents at Realty Japan. They do provide English speaking consultations and my personal experience with them is that they are very detail and meticulous in their work. Every step of the way, they will update you and ensure you understand all the legal provisions in the sales and purchase contract.

Legal Considerations

Foreigners can buy property in Japan without restrictions, but it’s essential to understand the legal process. Hiring a bilingual lawyer can help navigate the complexities of Japanese property laws and ensure a smooth transaction in your purchase.

Financing Your Purchase

Securing financing is almost impossible unless you are a permanent resident in Japan. If you are a foreigner without a residence in Japan, there is no property loans available on offer from any banks.

With that in mind, making a foreign remittance to and from a local bank here is just as equally difficult. Unless you are sending payments to a large bank (ie Mizuho, MUFG, Sumitomo), you are probably going to deal with a lot of paperwork and redtapes. Whilst Japan is largely known of their trains that is never late, technology in Japanese banks are largely lost in the 90s.

Before you get frustrated with them, do ensure your agent knows well about this issue and help you to navigate through the rabbit hole.

Owning a property in Hokkaido is a dream for many, and with the right preparation and guidance, it can become a reality. By understanding the market, setting a realistic budget, and navigating the legal and financial aspects carefully, you’ll be well on your way to owning your first property in this stunning part of Japan.

Getting the keys to your new home!

After closing the deal, it’s time to move in and start enjoying your new home in Hokkaido. Whether you’re planning to live there year-round or use it as a vacation retreat, owning property in this beautiful region is sure to be a fulfilling experience.

If you intend to use it as your holiday home, do consider getting a property manager to care for your house when you are away. You can read more here: Why do you need a property manager?