The demand by international investors for Furano real estate has grown rapidly in the last few years and this ski resort town has become a hot topic of conversation for investors and lifestyle seekers alike. This attention is well deserved, and the reasons why are clear from every metric.
Known as a year-round travel destination, Furano has strong demand for rental properties in both the winter and summer seasons which drives higher returns than can be expected from a winter only resort. In addition, Furano is in the very early stages of its investment cycle and the potential to ride the wave of capital appreciation is a significant drawcard to investors. Savvy investors, and those seeking a lifestyle destination all year round, have been quick to see the value on offer when compared to other Hokkaido resorts.
Let’s take a look at what makes Furano so attractive for property investment:
Fast Growing Popularity as Tourist Destination
Furano experienced a meteoric rise in international tourists in the decade before the coronavirus pandemic put a crimp in everyone’s travel plans, and we see no reason why it will not be at the forefront of recovery in the tourism sector just as soon as borders reopen for leisure travellers.
Between 2009 and 2019, overnight stays by foreign guests increased by an impressive 400%. In total, the region recorded around 2 million visitors a year before the pandemic, with approximately two-thirds of that total in the summer “green season.”
Investment Property Yields
Furano is a year-round destination for tourists, with twin peak seasons in the summer and winter. Winter sports enthusiasts come for the excellent powder snow and the impeccable facilities. In the summer, visitors are drawn to this part of Hokkaido by the countless outdoor activities, the famous lavender fields and many other tourist attractions.
This high visitor traffic throughout the year translates into superior occupancy rates and better returns on investment properties – doubling the potential income in comparison with winter sports resorts that rely solely on ski crowds.
Another plus for investors in newer condominium developments is that there is presently a shortage of quality accommodation in and around Furano, and the demand is strong for properties at the higher end of the market.
Other towns in Hokkaido – such as Niseko – have been investment property hotspots for many years, making those markets mature both in terms of development and the amount being invested. Furano, on the other hand, has only come to the attention of discerning international investors in the last two or three years.
Despite being 15 years behind Niseko, we are convinced that Furano is going to catch up rapidly and we can already see the momentum beginning to build.
At present, Furano offers the highly appealing opportunity to take advantage of the full investment cycle – ideal for anyone who missed out on the chance to get into the Niseko market at the ground floor 15 years ago!
With this local knowledge and awareness of the potential that is brewing, developers have been steadily accumulating strategically located plots around the resort for future projects, meaning that smaller-scale investors can buy with confidence.
At the moment, land prices in Furano are comparatively low but, as we know from experience, the capital growth opportunity going forward looks very attractive.
Investments in condominium projects are as much as 30 percent cheaper than in Niseko, but are bringing in higher yields simply because Furano has the advantage of the double peak seasons of both winter and summer.
Beyond Financial – The Great Outdoors Lifestyle Choice
In addition to all the great financial reasons for buying property in Furano, it is a great destination for anyone looking to make the most of fantastic winter sports opportunities and to have amazing summer months, both for themselves and their families.
Furano, famous for its light and dry powder snow, is also well known for clear weather and blue skies, making it a favourite among everyone from novices and families to hard-core powder skiers.
It has earned itself a reputation for competitive skiing – with Furano recognized as a world-class venue that has hosted no fewer than 10 FIS World Cup Ski events and two Snowboard World Cups.
While there’s lots to boast about Furano’s snow season, this same town is actually a magnet for visitors in the summer. Furano is nestled in a green valley fringed with lavender fields and other farm crops. The community is flecked with wineries, restaurants and a network of cafes and artisan bakeries, all with the backdrop of the stunning Daisetsuzan Mountain Range.
It’s little wonder that tourist numbers to Furano have been growing over the years, and we hope we can help you secure a piece of Furano before it becomes the next Niseko!
You can browse the latest Furano property listings here!
GET IN TOUCH
For a no obligation chat about current market conditions and the best available opportunities in the market today, get in touch with Furano sales manager Scott Tovey anytime:
Mobile: +81 (80) 3324 9605
Whats App: +81 80 3324 9605