Fukuoka City's Hakata Connected Bonus Certification Program is an innovative real estate investment incentive to accelerate redevelopment of the Hakata Station area. The program was established in 2019 and has already brought several major development projects to fruition through benefits such as a maximum 50% increase in floor-area ratio and tax incentives. It is a time-limited opportunity for investors until 2028 and is a core part of Fukuoka City's strategic urban planning that is expected to have an annual economic ripple effect of 500 billion yen.
The essence of the program: a bold strategy for urban renewal
The Hakata Connected Bonus is more than just building deregulation; it is a strategic program to replace a cluster of 40- to 50-year-old buildings constructed when Hakata Station was relocated in 1963 and the Sanyo Shinkansen bullet train opened in 1975, with advanced, earthquake-resistant buildings.
Under the current legal regulations, a major obstacle to reconstruction was the reduction in floor space at the time of reconstruction, but this system has removed that barrier. Many projects are already underway in the area within a radius of approximately 500m (approx. 80ha) from the center of Hakata Station, the target area.
Fukuoka City aims to rebuild approximately 20 buildings over a 10-year period (2019-2028), and as of February 2021, 15 buildings have already been reported to have been rebuilt or are in progress. The limited time frame of the program makes it a limited opportunity for investors.
Benefits to Investors: Multiple Incentives
The most attractive aspect of this program is the combination of multiple incentives:
- Significant floor-area ratio relaxation: Up to 50% additional floor-area ratio is possible.
- Preferential evaluation of open space: Up to 2.5 times the evaluation of covered plazas, etc.
- Financing support: Special financing products offered (by regional financial institutions)
- Tax incentives: Tax incentives for eligible projects
- PR and tenant acquisition support: PR and preferential tenant introduction by the government
- Special exceptions to height restrictions under the Civil Aeronautics Law: Special approval for each individual plan
These preferential measures are expected to improve the profitability of projects that would otherwise be difficult to realize and increase investment returns.
Conditions for eligibility: Creation of connections and liveliness are key
The main conditions for receiving certification are as follows
- Creation of a circulation space that creates a connection with the surrounding area
- Creation of an attractive plaza space that generates liveliness through event use, etc.
- Promotion of shade trees, flowers, and eye-catching greenery
- Consideration of universal design
- Completion by the end of 2028
In addition, the "10,000 Trees in the Urban Forest Project" and the installation of public art will also be considered for points. Applications are accepted at the City Center Creation Division, City Center Creation Department, Housing and Urban Green Bureau, Fukuoka City (TEL: 092-711-4426) and require submission of documents based on the "Hakata Connected Bonus Certification System Outline".
Success Stories: Advanced projects that have already been realized
Hakata East Terrace (No. 1 certification)
- Location: 1-chome, Hakataekihigashi, Hakata-ku, Fukuoka City, Fukuoka
- Development: NTT Urban Development, Taisei Corporation
- Features: One of the largest office floors in Hakata area (approx. 680 tsubo), natural ventilation and ventilation unit installed
- Construction completed in August 2022
Connect Square Hakata (No. 2 certified)
- Location: Hakata Station Higashi 1-chome, Hakata Ward, Fukuoka City (former site of Fukuoka Higashi General Government Building)
- Development: JR Kyushu, Fukuoka Jisho, Aso Group
- Features: Holding events in a pilotis-shaped plaza, setting up a café selling Fukuoka's specialty products
- Completed in March 2024
Nishi-Nippon City Bank Head Office (No. 3 approved)
- Location: Hakata Ekimae, Hakata-ku, Fukuoka City, Fukuoka
- Development: Nishi-Nippon City Bank, Fukuoka Jisho
- Features: Development of a large-scale multi-story plaza named "Connected Core
- Construction to be completed in January 2026
Hakata Ekimae 3-chome Project (No. 4 approved)
- Location: Hakata Ekimae 3-chome, Hakata Ward, Fukuoka City, Fukuoka
- Development: Central Japan Land & Building Co.
- Features: Partial reuse of existing frame, solar power generation facilities, shared cycle port
- Construction to be completed in June 2025
Economic Impact: Notable Investment Opportunity
According to estimates by Fukuoka City, the following effects are expected through this program
- Total floor area: Approx. 1.5 times (498,000㎡)
- Number of employees: Approx. 1.6 times (51,000)
- Construction investment effect: 260 billion yen
- Economic ripple effect: 500 billion yen/year
This system is an important project for Fukuoka City along with the "Tenjin Big Bang" and is part of a strategy to enhance the functionality and attractiveness of Fukuoka's two metropolitan nuclei (Tenjin and Hakata).
Investor Outlook: Time Limit for 2028
The Hakata Connected Bonus Program offers a time-limited opportunity in Fukuoka City's urban development strategy. Several projects are already underway, but given that construction must be completed by the end of 2028, the real time frame for taking advantage of this program is even shorter when considering the time between planning and execution.
For real estate investors, this is a rare investment opportunity in the Hakata Station area, the gateway to Kyushu, and by making maximum use of incentives such as the relaxed floor-area ratio and tax benefits, it may be possible to secure profitability for projects that would otherwise be difficult to realize.
This program is truly a good example of public-private partnerships, as it contributes to enhancing the value of Hakata, one of Fukuoka City's two core cities, while at the same time offering the potential for a return on investment.
