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 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.
The most attractive aspect of this program is the combination of multiple incentives:
These preferential measures are expected to improve the profitability of projects that would otherwise be difficult to realize and increase investment returns.
The main conditions for receiving certification are as follows
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".
According to estimates by Fukuoka City, the following effects are expected through this program
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).
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.