Buying a Property in Japan

Jan 30, 2025

Buying a Property in Japan

If you’re an expat in Japan ready to settle, you may want to consider buying a home in the country. Japan has some great places to live, from thriving metropolises to more serene rural locations. There are minimal restrictions on foreigners buying property in Japan but you’ll need to follow certain processes as well as work out your budget and do some research into the best places to live.

Who Can Buy Property in Japan?

Essentially, anyone from across the world can buy property in Japan as long as they can afford it. If you need a mortgage as an expat in Japan, most lenders will ask that you have permanent residence or citizen status. You will need a Japanese bank account and an official ID number (called My Number) for a mortgage.

Cost of Buying Property in Japan

The costs of buying a home in Japan obviously depend on factors such as property size, type, age, and condition, as well as location. The national average for an apartment (condominium) is just over 1 million yen per square meter in central districts and 550,000 yen for properties on the outskirts. This is less than half of what you’d pay in the UK or the US. Tokyo is the most expensive Japanese city, as you’d expect of the capital. Here, you’d pay around 50% more than national average.

Condominiums are slightly more expensive than houses in Japan. The cheapest property type available is the koryoya, which is a traditional wooden house built before 1950. These generally sell for between 5-10 million yen.

Additionally, you’ll need to budget for costs including:

• Taxes – between 7-8% of property value approx.
• Realtor fees – approx. 3-4% of property value
• Stamp duty – between 5,000 – 500,000 yen
• Additional costs such as mortgage fees and building insurance

How to Buy a Property in Japan

Once you have found a Japanese home that you are happy to buy, you will need to follow these steps:

1. Make an offer. This is typically done through a realtor and can be below the asking price. The offer is not legally binding, although you may sour your relationship with the seller and agents if you suddenly change your mind.
2. Pay the deposit once an offer has been accepted. This is typically 10-20% of the total. You are now committed to the sale.
3. Sign the contract through a solicitor, register the title deeds, and pay the outstanding balance.

Finding a Property in Japan

You can find Japanese properties using a realtor. The team at Japan Home Search are experts at any and all property matters and are a great place to start when you are prepared to make a purchase. There are also English-speaking agents on websites such as Real Estate Japan. You can also use an online property portal such as (links in Japanese):

• Suumo
• Homes.co.jp
• At Home

Buying Property in Kansai

Situated in the center of Japan’s main Honshu island, Kansai is second only to Kanto – which contains the capital Tokyo – when it comes to places where expats settle. It contains the bustling cities of Osaka, Kyoto, and Kobe. These areas have properties cheaper than the national average. An apartment in central Osaka averages at 520,000 yen per square meter while in Kyoto it’s slightly more expensive at 800,000 yen.

Buying Property in Hiroshima

A fast-developing area among expats, Hiroshima has been extensively rebuilt since the 1945 atomic bombing. Both a city and a larger prefectural area, it’s a focal point in the Chugoku region of western Honshu. There are several popular expat residential areas, including the Higashi and Minami wards. The average property price across the prefecture in 2024 was 141,900 yen per square meter, making it one of the more affordable areas to invest in.

Buying Property in Kumamoto

A picturesque city and wider prefecture on Japan’s Kyushu island, Kumamoto boasts the spectacular Mt. Aso volcano, although it doesn’t yet have quite the developed infrastructure for expats as places such as Tokyo and Osaka. However, this does mean significantly cheaper property prices. The 2024 average across the prefecture was 74,600 yen per square meter. According to 2022 analysis by Real Estate Japan, Kumamoto was the 24th of the 47 Japanese prefectures for property prices.

Tokumeigakarinoaoshima, CC BY-SA 4.0, via Wikimedia Commons