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Income-Generating Rental Properties for Sale in Kita-Ku, Sapporo

Income-Generating Rental Properties for Sale in Kita-Ku, Sapporo

As a service to our clients that want to buy Sapporo investment property, we present a review of several current rental income properties for sale in Sapporo; in this case, all in the Kita-ku ward of Sapporo (just north of Sapporo Station). We examine four actual examples of Sapporo multifamily properties for sale to help potential buyers understand the range of prices, the quality of the buildings, and current rental yields in the Sapporo housing market.

When you’re ready to buy real estate for investment in Sapporo, contact us. We will connect you with experienced, English-speaking local Sapporo real estate brokers that can help you find what you need.

Also see our pervious examples of Sapporo rental properties for sale, our examples of Sapporo condominiums for sale, and our guide to real estate for investment in Sapporo.

Four Examples of Apartment Buildings for Sale in Sapporo

— Example #1: 15-Unit Apartment Building for Sale in Kita-Ku, Sapporo
— Example #2: 14-Unit Rental Property for Sale in Kita-Ku, Sapporo
— Example #3: 8-Unit Rental Property for Investment in Kita-Ku, Sapporo
— Example #4: 43-Unit Multifamily Building for Sale in Kita-Ku, Sapporo
— Investment Property in Kita-Ku, Sapporo
— How Much Does it Cost to Buy an Apartment Building in Sapporo?
— Websites That List Apartment Buildings for Sale in Hokkaido
— Sapporo Brokers and Agents that Help Foreign Real Estate Investors

Let’s get into some specific examples:

Example #1: 15-Unit Apartment Building for Sale in Kita-Ku

— Property category: Multi-family investment property for sale in Sapporo
— Price: 70,000,000 JPY
— Year built: 1991
— Land: 231.4 m²
— Interior space: 440.55 m²
— Price per square meter: 158,892 JPY
— Construction: Reinforced concrete
— Floors: 4
— Units: 15
— Avg unit size: 29.4 m²
— Annual rental income: 6,685,000 JPY (estimated)
— Yield from rents: 9.55% (per the property listing)

This is a 15-unit multifamily building for sale in Sapporo (Kita-ku). This building is a 10 minute walk from the nearest station, and a 22 minute walk from Hokkaido University. Even as the building was completed in 1991, and has some signs of deferred maintenance, the quality of construction is relatively nice/appealing. The interior lobby is acceptable. The building fits with the others on the same street (several rental properties on this block, along with at least one, relatively-nice detached home).

Notes for investors: At 70,000,000 JPY, this is not the lowest-priced apartment building for sale in Sapporo, but it is relatively affordable. At 15 units, it’s big enough to generate real income, and probably to also justify hiring a Sapporo property manager to handle leasing and the day-to-day work with tenants. At 9.55% rental yield, that is considerably better than many other investment opportunities, and much better than most markets in Japan (or nearby Asian countries). Of all the properties in this review, this was the most attractive. The location near a station and the university, is well positioned for the future.

This is a Class C (or B-) property in a Class B neighborhood.

Example #2: 14-Unit Rental Property for Sale in Kita-Ku

— Property category: Multi-family investment property for sale in Sapporo
— Price: 39,800,000 JPY
— Year built: 1985
— Land: 201.64 m²
— Interior space: 308 m² (estimated)
— Price per square meter: 129,221 JPY (estimated)
— Construction: Wood
— Floors: 3
— Units: 14
— Avg unit size: 22.0 m²
— Annual rental income: 4,437,700 JPY (estimated)
— Yield from rents: 11.15%

This property is a 14-unit multifamily building in Sapporo, located in Kita-ku; it is for sale. This property is in an excellent location, just four minutes from the nearest station, and a 15-minute walk to nearby Hokkaido University. Built in 1985, this is an older property, and the building exterior shows several signs of poor maintenance. The interior was not attractive.

Notes for investors: This building looks to be in poor shape. The information provided by the seller’s agent was incomplete, but rents look to be very low for this building; the unit are certainly very small, and likely in poor condition. While the reported rental yield looks high (11.15%), this is a low-quality building; finding new tenants would not be easy. This building is also located down a very narrow street, and reconstruction may be challenged by the location (situated behind other buildings). This building looks to be at the end of it’s useful life, and may be a poor risk for most investors.

This is a Class D property in a Class B neighborhood.

Example #3: 8-Unit Rental Property of Investment in Kita-Ku

— Property category: Multi-family investment property for sale in Sapporo
— Price: 28,800,000 JPY
— Year built: 1994
— Land: 161.98 m²
— Interior space: 232.2 m²
— Price per square meter: 124,031 JPY
— Construction: Wood
— Floors: 3
— Units: 8
— Avg unit size: 18.2 m²
— Annual rental income: 2,962,800 JPY (estimated)
— Yield from rents: 10.28%

This is a smaller, 8-unit apartment building for sale in Sapporo, located on a narrow (relatively quiet) residential street in Kita-ku. This building is a nine-minute walk from the nearest station, and only 16 minutes from Hokkaido University. The building was completed in 1994, making it one of the newer building in this review, but does not appear new. Opening the door to the building leads to a plain, very small, almost industrial hallway. The stairs leading to the units are made from minimal-quality materials. The building is low quality, and uninviting.

Notes for investors: As we visited the building, we could see some of the units look to be completely full of boxes and other belongings. It’s not clear if there is an occupant, or if the units are being used as storage. It is possible the building will be sold full of belongings, and trash removal could be part of the process and cost of taking ownership. Of the four garage spaces, three have not been used in weeks (the snow around those garages hasn’t moved). Despite the excellent location, these units would be very hard to rent, and/or would rent at unusually low rates.

This is a Class C- property in a Class B neighborhood.

Example #4: 43-Unit Multifamily Building for Sale in Kita-Ku

— Property category: Multi-family investment property for sale in Sapporo
— Price: 155,000,000 JPY
— Year built: 1986
— Land: 516.5 m²
— Interior space: 827.24 m²
— Price per square meter: 187,370 JPY
— Construction: Reinforced concrete
— Floors: 4
— Units: 43 (plus an office)
— Avg unit size: 18.8 m²
— Annual rental income: 18,229,200 JPY (estimated)
— Yield from rents: 11.76%

This is a large, 43-unit multifamily building for sale in Kita-ku, Sapporo. This building is seven minutes from the nearest station, and a 26 minute walk to Hokkaido University. The building looks relatively attractive in photos and from a distance, but as you approach, it looks to provide a low-quality living experience. All of the units are 1DK, very small, single room units.

Notes for investors: This large, Sapporo multifamily building for sale provides an interesting comparison versus the other opportunities in this review. The building may have had an exterior paint job recently, which may be why it photographs well. The individual units look to be in relatively poor shape, and are likely low quality. Packed very close together, with minimal privacy, the building is similar to low-quality roadside motel. These units would not be suitable for most renters, and would likely attract a lower-quality tenants. The building is also quite old, and will be increasingly difficult to resell as it ages.

This is a Class C- or Class D property in a Class B neighborhood.

Investment Property in Kita-Ku, Sapporo

The astute reader may notice we only featured available investment properties in Kita-ku Sapporo in this review. Why would we do that?

To begin with, prices vary by location. By showing property in one area only, real estate investors can better understand the level of quality available within a given price range. By only showing investment opportunities in one area, we attempt to show an “apples to apples” comparison.

Beyond that, the Kita-ku neighborhood in Sapporo is central, and offers unique benefits to both residents and property investors in Sapporo; there are specific reasons why investors might want to choose investment property in Kita-ku.

As the map view in this review will indicate: all of these properties are in the same neighborhood in Kita-ku; close to the Kitanijuyojo Station (Kita 22) subway station (servicing the Namboku line), and are very close to Hokkaido University. The location near Hokkaido University is ideal for both students and university staff and educators. In addition, Sapporo Station is about 15 minutes away by train (or walkable, in about 30 minutes).

There are many great neighborhoods in Sapporo; the Kita-ku ward is a great example, and a potentially profitable location to own real estate as an investor. Less expensive than much of Chuo-ku, Kita-ku is a highly desirably location in Sapporo.

How Much Does it Cost to Buy an Apartment Building in Sapporo?

Buyers looking for available rental properties to buy in Sapporo may ask: how much does it cost to buy a multifamily building in Sapporo? The answer to that question depends on the location, the number of units, the size of the units (1R, LDK, 2LDK with parking, etc), the age of building, the quality of materials, and other factors.

For investors that are trying to gain some insight as to the cost and available returns from Sapporo investment properties, these examples may help to set expectations. Seeing specific examples of the cost for properties in Sapporo with income from rents, may help foreign real estate investors in Sapporo prepare an adequate budget.

There are both more- and less-expensive investment properties in Sapporo, but these examples can show what is available in a given price range.

When you’re ready to look at property for sale in Sapporo, plan to work with a local Sapporo real estate broker that specializes in investments. For an introduction, contact us.

Websites That List Condominiums for Sale in Hokkaido

There are websites with investment property listings in Sapporo. We publish a list of websites that list property for sale in Japan. Separately, some local real estate companies in Sapporo list local property of investment on their websites (often when they represent the owner of the building). The government website REINS (the database of Japanese properties for sale operated by the Japanese government) is also a good resource for property for sale in Sapporo (REINS listings can only be accessed by licensed real estate agents in Japan).

While it is relatively easy for an investment property buyer to find investment properties in Sapporo online, those listings are almost always in Japanese. It is also true that for-profit real estate listing websites in Japan are very incomplete – they only show properties when agents pay to include those listings. And, like most markets, the best investment opportunities are often off-market properties in Sapporo.

For local advice – and for access to properties that cannot be found online – the best strategy is to work with a local Sapporo real estate advisor. They can, of course, help communicate with Japanese sellers and their agents. A local Sapporo buyer’s agents that specializes in investment property will also search REINS and publicly-available listings, talk to other agents in their network, and present you with the best opportunities. They can show you good deals, give you advice about the best neighborhoods in Sapporo, as well as provide guidance on what not to buy (which may be even more important).

To work with a local Sapporo real estate consultant, contact us.

Real Estate Brokers That Help Foreigner Find Sapporo Investment Property

There are several real estate brokers in Sapporo that have experience helping qualified foreign buyers find real estate investments in Hokkaido.

Buyers that aren’t from Japan usually require more help and guidance than Japanese buyers. A good agent will find out why you want to buy property in Sapporo, and can then make recommendations that meet your needs and budget. They can often also make introductions to local Sapporo property management companies that can pay bills and taxes, and take care of the property while you’re away.

Get Started

For real estate agents in Sapporo that speak English and specialize in the needs of foreign clients, contact us. We’re happy to provide a personal introduction.

— Types of Investment Property in Sapporo, Japan
— Examples of Real Estate for Investment in Sapporo, Japan
— Examples of condominiums for sale in Sapporo

And Also:
— A Guide to Investment Property in Osaka, and examples of investment properties for sale in Osaka City, Japan
— Investment properties for Sale in Kobe City, Japan

We work for you, not the real estate companies.

We provide person-to-person introductions to prescreened agents that help you sell, buy, lease, or rent property in Hokkaido. We search our custom database to connect you to real estate professionals that speak your language, address your needs and are available now to help you find what you want.

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To Get Started

For More Information:

— Different Real Estate Investment Opportunities in Sapporo
— See our piece about various Taxes in Japan
— Our detailed Guide to Paying Property Taxes in Japan
— We provide a list of Sapporo Tax Offices
— In Hokkaido, there are areas with special rates for property taxes
— Our review of the role of Property Management Companies in Sapporo
— Buying Property in Hokkaido as a Foreigner
— Our list of Tax Accountants for Expats Living in Japan
— Our complete guide for Buying a House in Sapporo
— Our report on How to Rent an Apartment in Sapporo and Move-In Costs for Sapporo Apartments
— Find Lawyers in Hokkaido
— Tax representatives in Japan
— Services that Help Foreigners Buy International Real Estate