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

Wondering how much a house in Japan is?

According to a survey report published in 2023 by the Japan Housing Finance Agency, the national average purchase price is ¥49 million ($327,000) for a custom-built home with land, ¥36 million ($240,000) for a pre-built home, ¥52 million ($347,000) for a new apartment/condominium, ¥25 million ($167,000) for a used detached house, and ¥30 million ($200,000) for a pre-owned apartment/condominium.

In this article, we'll dive deeper into the factors to consider when purchasing a house, and the forces that influence prices in city centers vs rural regions.

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

The following are housing price figures based on a survey report published in 2023 by the Japan Housing Finance Agency:

	Custom-built home + land	Pre-built new homes	New apartment	Pre-owned home	Pre-owned apartment
Nationwide	¥49 million ($327,000)	¥36 million ($240,000)	¥52 million ($347,000)	¥25 million ($167,000)	¥30 million ($200,000)
Greater Tokyo Metropolitan area​	¥56 million ($373,000)	¥41 million ($273,000)	¥58 million ($387,000)	¥31 million ($207,000)	¥33 million ($220,000)
Kinki area	¥52 million ($347,000)	¥37 million ($247,000)	¥53 million ($353,000)	¥24.8 million ($165,000)	¥28 million ($187,000)
Tokai area	¥48 million ($320,000)	¥30 million ($200,000)	¥47 million ($313,000)	¥22.6 million ($151,000)	¥23 million ($153,000)
Other areas	¥42.9 million ($286,000)	¥28.7 million ($191,000)	¥43.5 million ($290,000)	¥20 million ($133,000)	¥24 million ($160,000)

Note: The conversion rate from Japanese Yen to USD is calculated at 1 USD = 150 JPY. USD amounts are rounded to the nearest thousand dollars. All figures are approximate values.

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.

You'll notice the above table does not include the average price of akiya in Japan. Akiya, vacant houses, are calculated based on various factors that affect the market price. We'll cover the average cost of akiya in the following section.

What is the average price for akiya in Japan?

When an akiya goes up for sale, the major factors that will affect the price of the akiya include location, condition, building type, and depreciation.

1. Location

If a vacant house is situated near a train station or bus stop, the higher its appeal, and thus the more the owner can ask for the property. Additionally, if the property is within walking distance to a supermarket or a hospital, the value also goes up.

Many, though not all, akiya are located in rural areas versus urban centers. If you wish to live in rural Japan with few neighbors, you're in luck! Otherwise, you'll probably want to find an akiya that is close to good infrastructure and public transport. Keep in mind that an akiya in a good location will likely have a higher price than an akiya you might find in the country.

2. Condition

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

A building assessment can give you an approximate market price based on the building structure, area, and age. In Japan, a house's "useful life" depends on the building structure itself.

For example, the useful life of a wooden house is 22 years, so if a property is more than 22 years old, its value for tax purposes is zero.

Here's a chart that shows the useful life for other building structures:

Steel reinforced concrete (SRC) Reinforced concrete (RC)	47 years
Steel	34 years
Light gauge steel	19 years
Wood	22 years

3. Depreciation

For tax purposes, the value of a house is calculated using the formula below.

Depreciation cost = Building purchase price x Depreciation rate * x Building age

The following chart shows the changes in assessed price over time for three types of wooden houses with acquisition prices when new of ¥20 million($133,333), ¥30 million ($200,000), and ¥40 million ($266,667).

0 years old	¥20 million ($133,333)	¥30 million ($200,000)	¥40 million ($266,667)
Built 5 years ago	¥15.4 million ($102,667)	¥23.1 million ($154,000)	¥30.8 million ($205,333)
Built 10 years ago	¥10.8 million ($72,000)	¥16.2 million ($108,000)	¥21.6 million ($144,000)
Built 15 years ago	¥6.2 million ($41,333)	¥9.3 million ($62,000)	¥12.4 million ($82,667)
Built 20 years ago	¥1.6 million ($10,667)	¥2.4 million ($16,000)	¥3.2 million ($21,333)
Built 22 years ago	¥10,000 ($67)	¥10,000 ($67)	¥10,000 ($67)

Appraisal of a wooden house, example by Akiya Kaitori-kun

The market price for selling vacant houses is not determined by tax valuation, but it can serve as a rough guide when evaluating older homes.

It's important to note that many akiya require renovation, so even though lower prices are the norm when it comes to vacant Japanese homes, you should still expect to pay anywhere from ¥3,500,000 to ¥20,000,000 for general renovation costs, depending on the condition of your akiya.

Learn more about renovation in Japan here.

Where is housing the most and least expensive in Japan?

While housing in Japan is not as expensive as in other developed countries, the range of prices differs based on whether you're looking for housing in urban areas or small towns.

Tokyo—the most expensive for housing prices

The MLIT found Tokyo the most expensive prefecture.

Prefecture	Residential location (Yen)	Commercial location (Yen)
Tokyo	¥380,900	¥2,113,500
Kanagawa	¥180,600	¥606,000
Osaka	¥150,900	¥1,006,900

Average price per square meter.

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.

Tohoku—the least expensive for housing prices

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:

Prefecture	Residential location (Yen)	Residential location (~USD)
Akita	¥13,200	$130
Aomori	¥15,900	$155
Tottori	¥19,100	$190
Yamagata	¥19,800	$198

The cheapest average house prices per square 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.

How to set up your house in Japan with MailMate

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

Here are just some of the ways MailMate 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 can be a hassle if you can't read or speak Japanese.

MailMate can act as your liaison to set up, manage, and provide bill pay for your utilities.

Never miss a payment, even while you are away from your vacation home.

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 in order to comply with your 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 Japanese mail online (e.g., when you're away from your property). Plus, you’ll get an English translation summary for any mail that you want us to open.

If you want the physical copy of a mail item, we'll forward it to you at your request.

5. Maintenance scheduling

Use our bilingual virtual assistant service to schedule any house maintenance chores!.

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.

What to know about house ownership types in Japan

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 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 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.

One way to start is to look for properties for sale using real estate databases or akiya banks. Real estate brokerages and akiya banks will typically have contact forms online, which will allow you to get in touch with an agent.

Note: A bilingual real estate agent is invaluable when looking for a property in Japan that will suit your needs, so if you can't speak Japanese, we suggest heading for a bilingual brokerage. Read about bilingual real estate agents here.

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 and pay 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.

Don't forget about appointing a tax representative for your property taxes if you plan to be in and out of Japan—a requirement for all absentee property owners.

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. The price can increase to $500,000 if you are looking in a high-demand area, while potentially costing less than $100,000 for more rural areas in Japan.

How much is a house in the countryside of Japan?

Depending on the property type, many houses in the countryside of Japan can cost between $1000 and $30,000.

In closing

To answer the question, "How much is a house in Japan?" While it depends on where you want to live and the type of property you plan to buy, expect to pay around ¥36 million ($240,000) to ¥52 million ($347,000) for a new home and ¥25 million ($167,000) to ¥30 million ($200,000) for a pre-owned apartment/condominium.

For an akiya property, the price may range from $1000 and $30,000, depending on the condition, location, and age of the structure.

Need help managing your Japanese property—be it a primary residence, a secondary property for a vacation home, or a financial investment?

Consider MailMate!