Japan Property Blog

Investing in Real Estate in Kitakyushu City: Four Compelling Reasons

kitakyusyu Real Estate

Kitakyushu City, the second-largest city in Kyushu after Fukuoka, offers a myriad of attractions for real estate investment. Situated just across the Kanmon Strait from Honshu and close to the Asian continent, this city has historically thrived as a crucial transportation hub. The port towns of Wakamatsu and Moji, boasting Japan's largest Chikuho coalfield, witnessed early development with well-established infrastructures of railways and harbors.

Since the inception of the first integrated steel mill in Japan in 1901, Kitakyushu City has rapidly evolved, playing a pivotal role in heavy chemical industries that supported Japan's economic boom. Over time, the industrial landscape has shifted from raw material-based to high-value processing industries.

1. Municipal Support Initiatives to Attract Corporate Establishments

In recent years, the city has implemented support programs, subsidizing part of the consideration costs (transportation, accommodation, workspace fees, etc.) for companies without a presence in the city considering expansion. Over the past nine years, approximately 140 companies have opened offices or branches in Kitakyushu City, ensuring a sustained and stable demand for commercial real estate. The municipality's proactive approach to attracting businesses enhances the stability of real estate investments.

2. Strategic Geographical Advantage as a Hub for Human and Logistic Movement in East Asia

kitakyusyu asia hub

Kitakyushu City, adjacent to Fukuoka, is approximately an hour away by car or train, with a 20-minute Shinkansen ride connecting the two cities. Positioned between Tokyo and Shanghai, the Kitakyushu area not only enjoys proximity to the rapidly developing Asia but also boasts excellent transportation access with Kitakyushu Airport and Port, earning the title of "Asia's Gateway." This strategic location has attracted numerous manufacturing and logistics-related companies. The ease of access to major Asian cities, combined with the city's initiatives to support corporate expansions, positions Kitakyushu City for continued growth.

Presently, Taiwan's TSMC, the world's largest semiconductor foundry, is constructing a factory in Kumamoto, Kyushu. In the future, semiconductors produced here may be shipped globally from Kitakyushu, further emphasizing its geographical significance. With these geographical advantages and the city's support for corporate expansions, Kitakyushu City is poised for continued development.

3.Quality of Life and Affordability

The Kitakyushu area experiences fewer natural disasters, possesses abundant water resources, and actively promotes resilience to emergencies, including eco-friendly initiatives for future urban development. Fukuoka Prefecture consistently ranks high in popularity among foreign residents and young Japanese in surveys on desirable places to live. In particular, Kitakyushu City topped the "Retail Price Statistics Survey" among Japan's designated cities in terms of affordability in 2017. It also secured the first position for nine consecutive years in an evaluation of "Local Government Initiatives for Child-Rearing Support," making it an appealing city for the younger generation. The combination of a high quality of life and low living costs enhances the attractiveness of residential real estate for future investments.

4. Abundance of Tourist Resources and Educational Institutions

kokura castle

Kitakyushu City hosts universities and research institutions such as Kyushu University and the National Institute of Advanced Industrial Science and Technology. These establishments attract students and knowledge workers, ensuring a stable demand for rental properties. Moreover, historical tourist attractions like Moji Retro and Kokura Castle, refurbished in a Taisho-era retro style, contribute to the city's appeal. The influx of tourists and students bodes well for commercial real estate, including accommodation and retail facilities. The diversity and future potential provided by these tourist resources and educational institutions make Kitakyushu City a well-rounded choice for real estate investors.

Considering these factors, we encourage you to contemplate Kitakyushu City as a viable option for real estate investment. Its developmental prospects, geographical advantages, and excellent living conditions create an environment where the future value of real estate is anticipated to rise. The region's growth and diversity present a heightened potential for investment success.

Taishi Nakamura

Hello, I am Taishi Nakamura who writes this article. I have worked for over 20 years in a trading company based in Fukuoka, engaged in transactions with overseas partners. In 2012, I obtained a real estate agent license and started working in real estate brokerage. I aim to support overseas clients who wish to purchase high-quality and reasonably priced properties in Japan. I specialize in the Fukuoka area, which has excellent accessibility from major cities in East Asia and is experiencing rapid development. I also welcome inquiries about properties in prosperous Kumamoto, especially with the establishment of TSMC, the world's largest semiconductor manufacturing company.

Jan 19, 2024