Mitsubishi Estate Real Estate Service Releases 'Area Market Report / Hokkaido' June 2026 Edition

Mitsubishi Estate Real Estate Service Co., Ltd. (Head Office: 1-9-2 Otemachi, Chiyoda-ku, Tokyo; President and CEO: Shuichi Shimizu) has released the latest edition of its 'Area Market Report / Hokkaido,' covering Hokkaido's real estate market and macroeconomic indicators (issued June 2026).

This report provides a comprehensive overview of market conditions in the Hokkaido region, aiming to support strategic decision-making for investors and business operators.

Key topics from the June 2026 report and major market conditions extracted from the full report are as follows:

1. Real Estate Sales Market

Trend in Published Land Prices: Land prices in Sapporo are rising across all usage categories; however, the pace of increase has slowed compared to the previous year, indicating weakening upward momentum.

Transaction Volume Trends:

Real estate transaction volumes in Hokkaido had been on a declining trend since 2017 but shifted to an increasing trend from 2021. In 2024, the volume reached 4,089 transactions—the highest level since 2014. Transaction volumes increased across all asset types.

2. Real Estate Rental Market

Office Market Conditions:

Sapporo's office vacancy rate has continued to rise since January 2026. The asking rental rate stood at 13,253 yen per tsubo as of April 2026, remaining in the 13,000 yen range since October 2025. In 2026, large-scale developments are scheduled for completion in the 'Ekimae East-West District,' requiring close monitoring of market trends.

Condominium Market Conditions:

The condominium rental price index in Sapporo shows a flat trend for 'Single-Type' and 'Compact-Type' units. 'Family-Type' units have been on a downward trend since 2023 but still maintain a relatively high level.

3. Macroeconomic Indicators

Construction Cost Index:

Sapporo's construction cost index ('construction cost') continues to rise, reaching record highs across all categories. In particular, the index for residential (wooden) construction has exceeded 150 since entering 2026.

Business Conditions Index (DI Value):

Hokkaido's business conditions index (DI value) has remained positive for both 'Manufacturing' and 'Non-Manufacturing' sectors since December 2023. The 'Non-Manufacturing' sector had been on a downward trend since June 2025 but showed a slight increase in the most recent data.

Download the full report here

['Area Market Report / Hokkaido' Overview]

Publication Cycle: Twice a year (June and December)

Main Contents: Real Estate Sales (Published land prices, transaction volumes, expected yields, average price per tsubo for new condominiums, etc.)

Real Estate Leasing (Office vacancy rates, asking rents, new supply volume, condominium rental price index)

Macroeconomic Indicators (Construction cost trends, business conditions index DI, accommodation facility occupancy rates, factory location trends, etc.)

[Report Contents - Excerpts]

Market Summary

Real Estate Sales Market

・Trend in Published Land Prices (Sapporo)

・Land Price Distribution Map (Sapporo)

・Trend in Real Estate Transaction Volumes (Hokkaido)

・Trend in Expected Yields (Office, Residential, Commercial Facilities, Hotels in Sapporo Area)

・Sales Market Topics (Sapporo and Hokkaido)

・New Condominiums: Trend in Average Price per Tsubo and Exclusive Area (Sapporo)

Real Estate Rental Market

・Trend in Office Vacancy Rate (Sapporo)

・Trend in Office Asking Rent (Sapporo)

・New Office Supply Volume (Sapporo's Five Major Wards)

・Condominium Rental Price Index (Single, Compact, Family in Sapporo)

Macroeconomic Indicators

・Construction Cost Trends (Sapporo)

・Business Conditions Index (DI Value) Trend (Hokkaido)

・Accommodation Facility Room Occupancy Rate and Total Overnight Guests (Hokkaido)

・Factory Location Trends (Hokkaido)