The Real Reason Good Properties Don't Hit the Market | Behind the Scenes of Sapporo Real Estate Investment

■ Introduction

"Good properties aren't coming up at all..."

It's not uncommon for us to receive consultations like this from people considering real estate investment in Sapporo.
Many people might feel that the properties they see on portal sites and from real estate agent introductions lack a decisive factor, wouldn't you agree?

However, to get to the conclusion,
Good properties don't “not come up”; they are simply “decided before they are listed”.

This article will explain the reality of the Sapporo real estate investment market and why good investment properties are not commonly available, from an on-site perspective.

The world where "it's too late once the overview document is released"

I previously worked in real estate in Kyoto.

At that time, it was often said that,
"By the time the summary document is released, that information is already outdated."

It may sound extreme at first glance, but it gets to the heart of the matter in practical situations.

Because the properties with truly good conditions,
Because the buyer is determined before it hits the market.

In other words, by the time many people see it, there's a high probability that it's either a property that was “passed over” or a property that “remains for some reason.”

Well, what about Sapporo?

While not as extreme as Kyoto, good information about Sapporo's real estate investment market also doesn't come to light.

Real estate companies each have preferred parties to whom they provide information first, such as individual investors they have a close relationship with, or corporations that make continuous purchases.

And naturally, the better investment properties are introduced first within those relationships.

Therefore, by the time properties are listed on portal sites and REINS, they have often already gone through multiple consideration stages.

Whether or not you are perceived as a "buyer"

In a market like this, what becomes important is being recognized as someone who will actually buy.

No matter how many properties you look at, or how much knowledge you have, if you don't show the intention and ability to actually purchase, good information won't come your way.

From a real estate company's perspective, what's important is whether the transaction will definitely go through.

Therefore, clear investment criteria, quick decision-making, and a proven track record of actual purchases significantly influence the quality of information.

To find a good investment property in Sapporo, you need to be on the side that gathers information, rather than simply searching for it.

■ Actual cases decided behind the scenes in Sapporo

Here is an actual case that occurred in Sapporo.

We received a consultation about selling a multi-unit building with a large number of units and a certain number of vacancies.

If such a property were put on the market as is, the high vacancy rate could be perceived negatively, potentially diminishing the freshness and impact of the listing.

Therefore, as decided by the seller and ourselves, the policy was adopted not to publicly list the property until it is closer to being fully occupied.

On the other hand, considering its location, it was an area with expected rental demand, and it was a property where an improvement in occupancy rate could be anticipated with appropriate leasing.

Therefore, this property was only introduced to a limited number of investors and was sold without being publicly advertised.

Regarding the period after purchase, we handled everything from leasing to improving operations.

As a result, we have achieved occupancy rates close to our initial projections due to continued lease agreements within the expected rental range and the success of our leasing strategy.

And what's important in this case is,I'm looking at the "future" rather than the "present" when making my decision.

This property was likely judged solely on the impression that high vacancy rates mean high risk, simply because it was on the market.

But in reality,

• Demand for location
• Optimizing rent setting
• Room for improvement through leasing

Taking these elements into account, it was certainly worth investing in.

The structure that creates the information gap

Another thing to understand in Sapporo's real estate investment market is the existence of an "information gap."

Even when looking at the market at the same time, the quality and speed of information obtained can vary greatly from person to person. And that difference is not solely created by special skills or knowledge.

The biggest factor is who you are dating and what kind of relationship you are building.

From a real estate company's perspective, it is a natural decision to prioritize providing information to parties who are highly likely to lead to a transaction. Customers with whom transactions have been conducted without issues in the past, or investors whose decision-making is quick and smooth, will naturally be given higher priority.

On the other hand, for investors who take a long time to consider or whose intention to purchase is unclear, the reality is that they inevitably get put on the back burner.

As a result, a situation arises where you feel "there are no good properties." However, in reality, it's often not that properties don't exist, but rather that the information simply hasn't reached you.

Understanding this structure is the starting line for real estate investment in Sapporo.

Common Misconceptions

Here, I will also touch upon a misconception that many investors tend to fall into.

This is the thought, "Let's move only after finding a good property."

At first glance, this way of thinking seems rational, but in the actual market, the order is reversed. When good properties appear, investors who are already in a position to buy them are almost always the ones the deals are being made with.

In other words, if you're not ready, you can't even get on the playing field to begin with.

The real estate investment market, especially in Sapporo, tends to be competitive, attracting investors from outside Hokkaido and beyond, due to a relatively good balance between yields and prices. If you fall behind in this environment, it becomes difficult to acquire even the best properties, no matter how good a deal you find.

What's important is not to act after seeing a property, but to be in a position to act immediately when a property becomes available.

■ Differences Between Professional Investors and Individual Investors

So, what's different about investors who are actually getting good properties?

The big difference lies in the criteria for judgment and the order of actions.

Many investors look at properties, then think, gather information, and finally make a decision. While this process itself isn't wrong, it can be fatal in situations where speed is required.

On the other hand, successful investors have clear criteria established before even viewing a property. Therefore, when something meets their requirements, they can make a decision without hesitation and take immediate action.

This difference can lead to vastly different outcomes even when people are exposed to the same information. In reality, it's no exaggeration to say that the winner is decided the moment the information arrives.

Additionally, investors who acquire good properties tend to not seek properties in perfect condition.

Even if there are some challenges, I calmly assess whether they can be improved or are within a controllable range of risks.

This way of thinking leads to the judgment of "looking at the future, not the present" that I mentioned in the previous example.

■ Future of Sapporo Real Estate Investment

Finally, I will touch on real estate investment in Sapporo going forward.

Sapporo is an area with a good balance of population size, urban functions, and rental demand, and stable demand is expected in the future. Therefore, its attractiveness as an investment target remains at a high level.

On the other hand, precisely because its appeal is widely recognized, competition among investors may become even fiercer in the future.

The era where you could naturally find good properties just by waiting for information is ending.

That's why it's important to understand the market structure and clarify your own position.

Will you continue to look for good properties, or will you position yourself where good information gathers? This choice will greatly change the outcome.

■ How to View Properties on the Market

As can be seen from cases like this, there are limitations to judging solely by looking at properties on the market.

Of course, not all listed properties are bad.
However, it is also true that properties that have been listed for a long time often have some issues with their price or terms.

The important thing is the perspective of considering "why this property is still available."

When investing in real estate in Sapporo, it's necessary to make judgments by considering the background and circulation process, not just the yield.

Information is something you "go out and get."

To summarize what we've discussed so far, good properties don't just appear out of nowhere; the structure implies that they are acted upon before they become public knowledge.

And that information flows preferentially to trusted investors.

In other words, information is not something you wait for, it's something you go get.。

What matters is who you're connected to, not what media you consume.

■ Finally

When it comes to real estate investment in Sapporo, the concern of "not being able to find a good property" is heard very frequently.

However, many of those causes lie in the market structure.

Should I continue searching for good properties, or should I be in a position where good information gathers?
This difference leads to a significant difference in investment performance.

Real estate investment is about strategy, not just selecting properties but also how you gather information.

If you're having trouble choosing an investment property or gathering information in Sapporo, I encourage you to consult with us from a ground-level perspective.

We will provide practical proposals, including information prior to public release.