Earthquake-Resistant Buildings in Japan: Engineering, Investment, and Financial Benefits

Japan is a seismically active region and experiences more than 1,500 seismic events per year. Because of past natural disasters like the Great Kanto Earthquake in 1923 and the Kobe Earthquake in 1995, the government has been pushing for the necessity of earthquake-resistant buildings.

This article will explain the following points.

• Construction technology for high-rise buildings and residential homes

• Benefits of investing in earthquake-resistant real estate in Japan

• Earthquake resistance standards and building regulations in Japan

What is an earthquake-resistant building in Japan?

Earthquake-proof buildings in Japan are designed to absorb and minimize seismic energy and withstand earthquakes by using different technologies.

How do Japanese earthquake-resistant buildings work?

Earthquake-resistant buildings in Japan are designed with high-level engineering, and they are supported by the government’s strict building regulations to withstand earthquakes.

Japan’s engineering & modern building technologies

Japan’s earthquake resistance technology consists of three main technologies: seismic isolation (免震, menshin), earthquake-resistant structures (耐震, taishin), and seismic dampers (制振, seishin). 

1. Seismic isolation (免震, menshin) 

Menshin refer to seismic isolation bearings (rubber layers) absorb seismic motions. 

The bearings are installed between the building and the ground to prevent earthquake shaking from being transmitted to the building itself. 

These bearings can cut shaking by 70%-80%, reducing furniture falling over and secondary damage. However, the construction costs tend to be high.

2. Earthquake-resistant structures (耐震, taishin)

Taishin are steel-reinforced concrete structures designed to resist collapse. 

The new earthquake resistance standards, introduced in 1981, stipulate that houses must remain intact and not collapse, even when subjected to shaking with a seismic intensity of 6+ to 7.

3. Seismic dampers (制振, seishin)

Seishin dampers refer to devices that reduce seismic intensity by dissipating seismic forces. Dampers and weights are used to minimize the seismic motion and the shaking of buildings.

Flexible structures are used in skyscrapers, incorporating central pillars and modern engineering techniques to prevent structural failure.

Overview of Japan’s strict building regulations

Earthquake-proof building structures are strictly regulated by building codes and regulations. The following are the standards that most Japanese homes fall under. 

1. Old earthquake resistance standards (building before 1981)

Buildings were designed to withstand earthquakes when subjected to shaking with a seismic intensity of 5 or higher.

2. New earthquake resistance standards (building after 1981, Revised in 2000 & 2013)

This new standard required buildings to withstand earthquakes of JMA Seismic Intensity Scale 6-7.

3. Housing performance labeling system (耐震等級, Taishin Tōkyū)

The labeling system offers earthquake safety ratings for Japanese buildings. 

The system divides buildings into different levels based on their ability to withstand seismic forces. 

There are typically three levels: Grade 1 (Standard), Grade 2 (Higher resistance), and Grade 3 (Highest resistance), with Grade 3 buildings designed to withstand strong earthquakes without significant damage.

• Grade 1 (standard): A structure that will not collapse or break down even when subjected to the force of an earthquake that occurs extremely rarely (about once every few hundred years).

• Grade 2 (higher resistance): It will not collapse or break down even if it is subjected to an earthquake force 1.25 times that of earthquake resistance grade 1.

• Grade 3 (highest resistance): It will not collapse or break down in an earthquake 1.5 times stronger than the seismic force of seismic resistance grade 1.

Why is the earthquake-resistant standard important to know about when investing in property in Japan?

When purchasing a property in Japan, the buyer must confirm if the building meets seismic standards through documents and inspection for the following reasons.

1. Property safety & structural integrity: Buildings that meet new earthquake resistance standards are designed to withstand stronger earthquakes and can reduce the risk of collapse and repairs.

2. Legal compliance & certification: Buildings must meet specific regulations and buyers must confirm inspection reports, building certificates, and real estate disclosures to confirm compliance. Otherwise, the buyer may face legal and safety risks.

3. Property value & marketability: Earthquake-resistant buildings have higher resale value and rental demand.

4. Insurance & financial protection: Buildings with higher seismic resistance might qualify for lower earthquake insurance premiums. 

👉Learn more about property investment in Japan: Real Estate Investment in Japan: Benefits, Risks, Considerations

How can I find out a property’s earthquake resistance level?

When purchasing a property in Japan, the buyer must verify the following documents to check the property’s earthquake resistance level.

• Inspection reports: Building’s seismic resistance and retrofitting details by certified engineers.

• Certificate of inspection (建築確認証明書, Kenchiku Kakunin Shoumeisho): It confirms if the building design meets seismic standards or not. 

• Earthquake resistance standards compliance certificate (耐震基準適合証明書, Taishin Kijyun Tekigou Shoumeisho): It certifies whether or not the building complies with the new earthquake resistance standards.

• Real estate disclosure: Sellers must disclose any known structural issues or earthquake damage.

The buyers should request proof of the latest inspection report to avoid any kind of risk.

Financial benefits of earthquake-resistant buildings in Japan

Investing in earthquake-resistant buildings in Japan can benefit property owners financially in many ways. 

The main benefits are tax incentives, government subsidies, and insurance premiums. 

The benefits depend on whether you are buying a new home or are buying a used home. The following is a breakdown of the financial benefits of both options: 

Financial benefits when building a new property 

1. Tax incentives 

• Mortgage tax reduction: In Japan, if you acquire a new home using a mortgage, there is a system that allows you to deduct 0.7% of the loan balance at the end of the year from your income tax for up to 13 years. However, for new homes that undergo building confirmation after 2024, it is important to note that you will not be able to receive the mortgage deduction unless the home is of high quality and meets the energy-saving standards. 👉Note: When foreigners take out a home loan, the loan conditions may differ depending on whether they have permanent residency or employment status.

• Tax reduction for long-term quality homes: If the house is certified as a long-term quality home, you will be eligible for tax benefits such as registration & license tax, real estate acquisition tax, and fixed asset tax.

2. Government subsidies 

• Local subsidies: Some municipalities offer subsidies and grants for the construction of new homes with high energy-saving and earthquake-resistant performance. You will need to check the specific details at the office of each municipality.

3. Insurance benefits

• Lower insurance premiums: Earthquake-resistant homes may qualify for discounts on earthquake insurance premiums. Discounts of 10%-50% are applied to standard premiums, depending on the age of construction or earthquake-resistant performance.

Financial benefits when buying a used property

1. Tax reduction measures

• Mortgage tax reduction: If the used home meets strict criteria, 0.7% of the remaining loan balance from their income tax applies for up to 10 years.

• Income tax deduction for seismic retrofitting: If seismic retrofitting is carried out, there is a system that allows a 10% deduction from the construction cost (up to 250,000 JPY) from your income tax for up to 1 year.

• Fixed property tax reduction: For homes that have undergone seismic retrofitting, the fixed property tax may be reduced for a certain period of time.

2. Government subsidies

• Municipal subsidies: Many municipalities have subsidy systems for seismic diagnosis and seismic retrofitting. You will need to check the specific details at the office of each municipality.

3. Insurance Benefits

• Discount on earthquake insurance premiums: A discount on earthquake insurance premiums may be applied by carrying out seismic retrofitting and meeting the specified seismic standards.

👉Learn more about free houses in Japan: Free Houses in Japan: What To Know [+ Checklist]

👉Note: Tax reduction measures and subsidy systems may have complicated application conditions and procedures. It is highly recommended to check with your local government or relevant institutions for details.

What is the investment and market demand for earthquake-resistant properties?

Market trends show a growing demand among local buyers and foreign investors seeking earthquake-proof structures. For instance, buildings constructed after 1981 have higher resale value and lower maintenance costs.

When making any real estate investment consideration in Japan, it’s important to evaluate building foundation forms and local seismic intensity risks.

Older structures may require seismic retrofitting, while modern buildings comply with the latest anti-seismic structure standards.

👉Read about the cost of buying a house in Japan: How Much Is A House In Japan? From City To The Countryside

👉See also: How To Buy A House In Japan As A Foreigner

Frequently asked questions

What are earthquake-resistant buildings in Japan?

Earthquake-resistant buildings in Japan are designed to absorb seismic energy and withstand earthquakes using advanced technologies like seismic isolation, reinforced concrete, and seismic dampers.

How do earthquake-resistant buildings work in Japan?

These buildings use high-level engineering and strict building regulations to withstand earthquakes. Key technologies include:

• Seismic isolation (menshin): Absorbs seismic motions using rubber bearings.

• Earthquake-resistant structures (taishin): Reinforced concrete frameworks resist collapse.

• Seismic dampers (seishin): Reduces shaking by dissipating seismic forces.

What are Japan’s earthquake resistance standards?

• Old standard (pre-1981): Buildings designed to withstand seismic intensity 5 or higher.

• New standard (1981 & later, revised in 2000 & 2013): Requires buildings to withstand seismic intensity 6-7.

• Housing performance labeling system (Taishin Tōkyū): Ranks buildings by seismic resistance (Grade 1 to 3, with Grade 3 offering the highest protection).

Why is earthquake resistance important for property investment in Japan?

• Safety & structural integrity: Reduces collapse risks.

• Legal compliance: Ensures adherence to building regulations.

• Property value: Seismically safe buildings have higher resale and rental demand.

• Insurance & financial protection: May qualify for lower earthquake insurance premiums.

How can I check if a building is earthquake-resistant?

• Inspection reports

• Certificate of inspection (Kenchiku Kakunin Shoumeisho)

• Earthquake resistance compliance certificate (Taishin Kijun Tekigou Shoumeisho)

• Real estate disclosure reports

What are the financial benefits of investing in earthquake-resistant buildings in Japan?

For new properties:

• Mortgage tax reduction: Deduct 0.7% of the loan balance from income tax for up to 13 years.

• Tax reduction for long-term quality homes: Reduced registration, real estate acquisition, and fixed asset taxes.

• Local government subsidies: Grants for energy-efficient and earthquake-resistant homes.

• Lower insurance premiums: Discounts of 10%-50% on earthquake insurance.

For used properties:

• Mortgage tax reduction: 0.7% deduction on remaining loan balance for up to 10 years if the home meets certain criteria.

• Income tax deduction for seismic retrofitting: 10% deduction (up to 250,000 JPY) for retrofitting costs.

• Fixed property tax reduction: Reduction for homes with seismic retrofitting.

• Municipal subsidies: Local funding for seismic diagnosis and retrofitting.

• Insurance discounts: Premium reductions for retrofitted properties.

How does earthquake resistance affect property market demand?

• Higher resale value: Post-1981 buildings attract more buyers.

• Growing investor interest: Demand is increasing among local and foreign investors.

• New vs. existing buildings: Older buildings may require retrofitting, while newer structures already meet the latest standards.

• Seismic risk assessment: Investors should consider building foundations and local seismic risks before purchasing.

What should foreign investors know before buying earthquake-resistant property in Japan?

• Loan conditions: Mortgage eligibility may depend on residency or employment status.

• Tax & subsidy application process: Procedures can be complex; consulting local authorities is recommended.

• Building certifications: Confirm compliance with the latest seismic standards.

In closing

Earthquake-resistant buildings in Japan offer long-term value, safety, and financial advantages.

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