The Ultimate Guide to Buying a House in Japan as a Foreigner
If you are living in Japan, you should know more about buying a home.

The Ultimate Guide to Buying a House in Japan as a Foreigner

James Saunders-Wyndham

There is a growing number of foreigners buying houses in Japan. The country's population is in decline as the migrant workforce expands. This means that as more people move to Japan the demand for Japanese homes rises.

This guide tells you what to consider when planning to buy a house in Japan. It covers everything from:

  • key legal aspects to buying a house in Japan;
  • post-purchase decisions;
  • giving buyers detailed knowledge for their home-buying journey in Japan.

1. How Much is a House in Japan?

The Japan real estate price index has risen since 2020. Rising Japanese house prices are in line with the increase in the cost of living in Japan. The largest increase has been for Japanese apartments. However, the Japanese housing market has remained stable compared to overseas markets.

Japan real estate price index. Source: Japan Land Research Institute. Graph created by Romancing Japan
Japan real estate price index. Source: Japan Land Research Institute. Graph created by Romancing Japan

1.1. Japanese House Prices vs Land Prices:

How much is a house in Japan? That depends on where you want to live in Japan. The two areas that attract the most people are the Greater Tokyo area and the Kansai area. Tokyo real estate has higher average prices, about 53.56% more than Kansai real estate.

The Greater Tokyo AreaThe Kansai Region
TokyoOsaka
ChibaKyoto
SaitamaKobe
KanagawaNara
Shiga
Wakayama

Average land price value for the Greater Tokyo Area and the Kinki Area. Source: Japan Land Research Institute. Graph created by Romancing Japan
Average land price value for the Greater Tokyo Area and the Kinki Area. Source: Japan Land Research Institute. Graph created by Romancing Japan

1.2. Greater Tokyo Area Prices vs Kansai Area Prices

Area of JapanLand pricesHouse prices
Greater Tokyo Area¥33,270,000 JPY (around $213,600 USD)¥41,320,000 JPY (around $265,282 USD)
Kansai Area¥24,010,000 JPY ($154,149 USD)¥23,470,000 JPY ($150,682 USD)


Average house price value for the Greater Tokyo Area and the Kinki Area. Source: Japan Land Research Institute. Graph created by Romancing Japan
Average house price value for the Greater Tokyo Area and the Kinki Area. Source: Japan Land Research Institute. Graph created by Romancing Japan

2. Legal Aspects of Buying Property in Japan as a Foreigner

Foreigners looking to buy a house in Japan will find the legal landscape helpful. At the same time, there are specific requirements and restrictions to navigate. Here are the key legal considerations for non-Japanese buyers.

2.1. Can Foreigners Own Property in Japan?

The answer is 'yes'. Foreigners enjoy the same rights as Japanese citizens when buying house and land. Foreigners can buy Japan real estate regardless of nationality or visa status 67.

A typical Japanese model home.
A typical Japanese model home.

2.2. Do I Have to be a Resident to Buy Property in Japan?

The answer is no. But, there is a catch! You do not need a Japanese residence visa to buy property in Japan. Although you will need a valid residence visa when making a transaction with the bank 25. So, I recommend having a Japanese residency visa when you apply for a housing loan 3.

  • Buying property in Japan as a foreigner involves documentation, such as proof of identity 24.

  • If you are not a resident of Japan, you must report property purchases. This is according to the Foreign Exchange and Foreign Trade Control Act.

If you would like to learn more about Japanese visas, check out our article on Japanese visa types.

2.3. Japanese Property Rights and Ownership

Property ownership in Japan real estate is on a freehold basis. This gives the owner full rights without time restrictions 3. The same rules apply to both Japanese citizens and foreigners 2511.

2.4. Japanese Government Permissions for Specific Land Types

Foreigners need government permission to buy land listed as 'agricultural' or 'forest' 1357. Strict building restrictions may apply to these types of lands. Additionally, ownership restrictions may apply near military bases 1.

A model home display in Japan. Photo source: James Saunders-Wyndham
A model home display in Japan. Photo source: James Saunders-Wyndham

3. Understanding the Japan Real Estate Market

3.1. Japanese House Value vs Land Value

3.2. Importance of Earthquake-Resistant Japanese Homes

  • Houses built after 1982 are built to withstand earthquakes. This is because of Japan's frequent earthquakes.
  • Properties on soft soil, near the sea, or rivers are seen as high risk 2.

About 90% of all Japanese homes are built with wooden frames. This makes Japanese houses more flexible and less likely to break in an earthquake.

3.3. Ease of Access to Real Estate Information

Japanese real estate companies that provide housing listings. And some have English translation for properties across Japan 4:


3.4. Real Estate Market Growth

As mentioned as the beginning of this article, the residential property price index grew by 2.4% in 2023. This could mean price increases in existing condos in Tokyo and Osaka real estate 12345. So, there could be a chance of pick up a Japanese investment property that could grow in value over time.

Modern Japanese homes try to incorporate traditional aspects. Photo source: James Saunders-Wyndham
Modern Japanese homes try to incorporate traditional aspects. Photo source: James Saunders-Wyndham

4. Strategic Insights for Foreign Buyers

4.1. Foreigners Can Face Limitations

It can be helpful to understand local property markets,rules, and limitations. For example:

  • Some Japanese property sellers may have a 'gaijin ban'. This means they do not want to sell their Japanese house to a foreigner 78.
  • Japanese rural residents often don't sell to people they don't know. In this case, you will have to get friendly with the whole neighborhood.



4.2. Buying a Japanese Abandoned House (Akiya)

Akiya (空家), Japan's empty houses, are popular with foreign residents looking for a good deal. However, you should be warned... Even though these abandoned houses come cheap, they usually need rebuilding.

If you want to learn more about the akiya housing market, check out our article on akiya houses in Japan.

Inside a traditional Japanese house with low beams and tatami mat floor.
Inside a traditional Japanese house with low beams and tatami mat floor.

5. What You Need to Know After Buying a Japanese House

5.1. Ongoing Costs and Taxes After Buying a Japanese House

Annual Taxes:

  • Owners of Japanese real estate must pay Fixed Asset Tax and City Planning Tax annually 4.
  • The tax on your land and the tax on your house are separate.
  • After buying your Japanese house, inspectors will assess your house and property. This is because they need to determine the amount of tax you must pay.
  • Asset tax is 1.4% of the assessed value of the property.
  • The value is reassessed every three years, which can lead to changes in the tax amount.


5.2. Property Management for Overseas Owners

  • Comprehensive Management Services: Those living outside Japan will need property management services. Companies like PLAZA HOMES offer extensive property management services. This includes tenant recruitment and various repair services 4.

5.3. Maintenance and Upkeep

  • Regular Maintenance Plan: It is important to have a plan for regular upkeep of the property. Especially during extended periods when the owner is away 6.

5.4. Extra Financial Concerns

  • Initial and Recurring Costs: Beyond the buying price, buyers must include other costs. For example, registration costs, brokerage fees, and other related expenses 4.
  • Detailed Breakdown of Fees: These fees between 5-10% of the property's buying price. They include agent commission, registration fee, moving expenses, and contract-related fees 3.


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The Ultimate Guide to Buying a House in Japan as a Foreigner

James Saunders-Wyndham

I've been immersed in Japanese culture and daily life for over 30 years and am proud to call Japan my home. Originally from Australia, my journey has taken me from teaching at Japanese universities to traveling extensively across the country, uncovering its hidden gems. As a web developer, I built Romancing Japan from the ground up to share these experiences with you. Whether it's the charm of old Kyoto, the pulse of Tokyo, or the tranquility of the countryside, I love helping others discover the magic of Japan—one story at a time.