How Much Is A House In Japan? From City To The Countryside

Buying real estate in Japan is a major milestone for anyone.  

But before you buy one, consider these factors to answer the question: How much is a house in Japan?

3 factors to consider when buying a house in Japan 

These three factors affect the cost of a house in Japan.

1. Location

As they say in real estate: location, location, location. 

Many regional cities throughout Japan have a comprehensive public transportation system, school options, shopping centers, health facilities, and other amenities. The more convenient the location, the higher the price will be.

On the other hand, homes in more rural areas will be cheaper as there is less demand and limited accessibility to certain amenities. Most of the time, there will only be one train station or none at all, meaning you will need a car to drive around.

2. Size and condition

The property’s size, condition, and age greatly affect the price of a house in Japan and whether it has undergone any repairs or renovations. 

For example, a house in a Japanese city will be more expensive and smaller than a house in the countryside. A large rural house in Japan can be found for almost half the price of a Japanese city house.

One factor you should consider is that a new house in Japan can lose its value as soon as it is purchased. Buying second-hand that is several years old is the better option. However, older homes will need renovations compared to nearer homes that won’t require that. 

Additionally, Japanese apartments are another option that you can buy.

3. Type of ownership

There are two types of ownership in Japan:

• 土地保有権 (jiyu tochi hoyuken): translated as freehold property, is where the property and the land are given to the buyer with full ownership.

• 借地土地保有権 (shakuchiken tochi hoyuken): translated as leasehold property, is where the buyer only owns the property for a fixed amount of time, about 30-99 years. The buyer does not own the land. Leasehold ownership is common for commercial properties.

The type of ownership affects the type of fees you’ll pay. Freehold property owners pay everything involved in buying property in Japan, such as a commission fee, a registration fee, property tax, stamp duty, and stamp tax. (See MailMate's property tax calculator for an approximation of real estate taxes.)

Leasehold property owners are responsible for maintenance fees, annual lease payments, building upkeep, repair work, and management fees.

This factor affects whether you want to own a stand-alone house or an apartment complex.

Bank requirements to buy a house in Japan

If you are planning to get a mortgage or bank loan, here are the bank requirements to do so:

• Age: you must be at least 20 years old.

• Life insurance: in case you cannot repay the loan due to circumstances.

• Annual income: over 2 million yen or more.

• Japanese residency: lived in Japan for 5 years or more.

• ID and income documents: such as passport, residence card, tax certificate, etc.

Being a Japanese citizen, having a permanent residence, or being married to a Japanese person greatly increases your chance of getting a mortgage.

How much is a house in Japan? Looking at the average price of a house in Japan

Houses vary in size, so let’s look at single-family homes throughout Japan.

Every year, the Japan Institute of Life Insurance publishes figures on the average house prices paid for properties in the country, and these were the results for 2021:

Translated data from Japan’s Institute of Life Insurance

The capital city region includes Tokyo, Saitama, Chiba, and Kanagawa. The Kinki region includes Kyoto, Osaka, and Nara. The Tokai region includes Nagoya, Shizuoka, Aichi, and Gifu.

Japan’s Ministry of Land, Infrastructure, Transport and Tourism (MLIT) reports that apartments, especially condominiums in good locations, have greater potential for price appreciation, making them more valuable in the long term. However, these apartments are quite expensive, so they are high risk with a high reward.

Tokyo—the most expensive

The MLIT found Tokyo the most expensive prefecture.

Average price per squared meters.

High property costs continue for other big cities throughout Japan, including Osaka, Kyoto, and Kanagawa.

Commercial areas such as Shinjuku or Shibuya will increase the property's price to 1-2 million yen. 

Tohoku—the least expensive

The Japan’s Ministry of Land, Infrastructure, Transport and Tourism (MLIT) found the lowest average price by prefecture is in the Tohoku regions, specifically in Akita and Aomori.

Here is a translated table of the top 4 cheapest property prices by prefecture:

The cheapest average house prices per squared meter.

While the Akita and Aomori have a city center, such as Akita City and Aomori City, which will be more expensive than the rest of the region, these cities offer more affordable real estate options for a smaller urban lifestyle.

Akiya—practically free

If you’re ready for a fixer-upper or want to escape the city, consider akiya houses in Japan.

Akiya houses are abandoned houses throughout Japan for various reasons. They are usually away from city life, usually in rural areas, and some will need major renovations depending on their condition.

Let MailMate help you set up your house in Japan

Whether you are a new homeowner, just purchased an akiya, own multiple properties, or want a vacation home, MailMate.jp will assist you with acquiring and managing a house in Japan through a variety of comprehensive services.

Here are the key ways MailMate.jp can help:

1. Property purchase support

To help you throughout the property purchase process, we will handle any correspondence and provide local knowledge and experts for your specific needs.

2. Utility liaison services

Setting up utilities such as water, gas, and electricity is a hassle during your busy day.

MailMate will take this task off your hands and act as your liaison to set up, manage, and pay these utilities.

Never miss a payment, even while you are away.

3. Tax agent services

When you need to be away or don’t want to deal with the headache of Japanese property taxes, make MailMate your tax representative to handle paperwork and payments for you.

We will explain what needs to be done to payments and other financial obligations related to property ownership.

4. Virtual Mailbox with mail management

Don’t waste your time sorting and translating every single email that comes your way. MailMate will give you a quick summary of the mail, so you know what's important and what’s spam.

Perfect for anyone who wants to manage with Japanese mail online or if you're away from your property. Plus, you’ll get an English translation for the mail you want us to open.

If you need any particular mail, we'll forward it to you to the address at your request.

5. Maintenance scheduling

By phone, email, or with our virtual assistance service, you don't have to worry about communicating in Japanese to schedule maintenance or service for your place.

Our bilingual staff will be the communication bridge between you and your service provider. Plus, we’ll provide you with options if needed to help you make the best choices for various setups and services.

How to buy a house in Japan

Here is a step-by-step overview of buying a house in Japan, especially if you are a foreigner. However, the process will vary depending on numerous factors.

If you happen to a foreigner abroad, we have the perfect guide for you: How To Buy A House In Japan As A Foreigner Living Abroad

1. Find properties with a real estate agent.

A reliable real estate agent will be your best friend when finding properties that suit your needs.

However, if you need help figuring out where to start, look for properties for sale using real estate databases or akiya banks. From there, you will contact an agent.

Visit the property if you can to understand the area, potential noise, and the property's structural issues if it's an akiya.

2. Make an offer.

Once you have a property you are interested in, you and your agent will submit a Letter of Intent. This letter will lay out the terms of your offer, including:

• Purchase price

• Contingencies such as finance and inspections

• Desired closing date

Your real estate agent can negotiate more favorable prices and terms.

If accepted, then on to the next step.

3. Secure financing.

If needed, apply for a mortgage from a bank. 

When applying for a mortgage, pay attention to interest rates, repayment periods, and potential penalties for early and late repayments. 

You must also provide documentation such as proof of income, tax returns, employment verification, and a valid visa when applying. Additionally, the bank may require a guarantor or co-signer.

Once the application is submitted, the bank will finalize the property and your financial situation, which will take a couple to several weeks.

4. Sign the contract.

Once the finances have been finalized and your offer is accepted, you will sign the sales contract with your real estate agent. 

The main thing about this step is paying the deposit for this property.

5. Complete other finance transactions.

Afterward, you will go to the local government to register the new property under your name. There, you will also pay various stamps and taxes relating to the property.

6. Move-in.

Once everything is finalized, your property is ready to move in.

Frequently asked questions

Can I buy a house in Japan as a foreigner?

Foreigners can buy a house in Japan as there are no residency requirements.

How much is a house in Japan in USD?

A house in Japan can cost between $275,000-$450,000 in USD. It can cost more in more Japanese cities, starting at $500,000, while only costing less than $100,000 for more rural areas in Japan. 

How much is a house in the countryside of Japan?

Many houses in the countryside of Japan can cost between $100 and $500.

In closing

To answer the question, "How much is a house in Japan?" It all depends on where you want to live and the type of property you plan to buy. 

With the right real estate agent, you'll find the perfect property—be it a primary residence, a secondary property for a vacation home, or a financial investment.