How Much Are Homes in Japan? A Look at Prices & Costs

The Japanese housing market is influenced by economic factors and cultural practices. This article examines what influences home prices across Japan and the costs involved in acquiring a residence.

Key Factors Influencing Home Prices

Location is a primary determinant of home prices in Japan. Urban areas, especially near major train stations or business districts, command higher prices due to convenience and amenities. Rural or less accessible suburban properties are more affordable.

The age and condition of a property also play a significant role. Japanese homes often depreciate rapidly, with newly built houses preferred. This leads to a “rebuilding culture” where older homes may be demolished and replaced rather than renovated. The land beneath the structure often retains more value than the building itself.

Property size directly correlates with price. Larger plots and more expansive living areas result in higher costs, especially in densely populated urban centers where land is scarce. Building material quality and construction methods, such as wood versus concrete, also influence the price. Market dynamics, including supply and demand, interest rates, and economic conditions, influence property values.

Regional Price Breakdown

Home prices vary considerably across Japan, with major urban centers having the highest values. In Tokyo, the nation’s most expensive real estate market, a 70 m² apartment in the 23 central wards averaged around ¥91.4 million as of 2025. New condominiums in central Tokyo range from ¥1.1 million to ¥1.5 million per square meter, while used units are ¥800,000 to ¥1 million per square meter. Detached houses in Tokyo’s 23 wards range from ¥60 million to ¥120 million, though prime central locations can exceed ¥150 million.

Other major urban centers like Osaka and Nagoya also have higher prices compared to the national average. In Osaka, existing condominium average prices were ¥477,000 per square meter in January 2025, with detached houses in Osaka’s suburbs ranging from ¥20 million to ¥40 million. Kyoto City’s average property price for a 70-80 m² apartment in a central location was about ¥62.2 million.

Regional cities such as Fukuoka, Sapporo, and Sendai offer more budget-friendly options, varying by local economic strength. In Fukuoka, newer houses range from ¥40 million to ¥60 million within the city. Sapporo’s average home cost was ¥27.6 million, with central areas like Chuo-ku reaching around ¥52.1 million. Sendai offers more accessible pricing, with average detached homes around ¥60 million.

Rural and suburban areas experience a significant drop in prices, making homeownership more attainable. An average detached house in many rural prefectures can cost ¥20 million to ¥25 million. Move-in ready houses can be found in rural Japan for as little as ¥2 million to ¥3 million, particularly in depopulated areas. These areas often present trade-offs regarding services and job opportunities, but they provide a contrast in affordability.

Property Types and Associated Costs

The Japanese residential market offers distinct property types, each with its own cost structure. Apartments, known as “mansions” (condominiums) or “apāto”, are prevalent in urban areas. New and recent condominiums in central Tokyo can exceed ¥1 million per square meter. A typical 70 m² unit in less central areas costs ¥50 million to ¥60 million.

Condominium ownership entails ongoing costs beyond the purchase price. Owners are responsible for common area fees and contributions to a repair reserve fund. These fees are separate from the mortgage payment and vary based on the building’s size, age, and amenities.

Detached houses, known as ikkenya, are a common property type, particularly outside dense urban cores. The value of the land is the most significant component of the overall price, especially in metropolitan areas. New detached houses in Tokyo’s outer areas start around ¥50 million to ¥60 million, while pre-owned homes can be less expensive depending on their age and condition. Custom-built homes, or “order-made houses,” incur higher costs due to personalized design and material choices.

Traditional Japanese houses, or kominka, are found in rural settings. While their purchase prices can be low, they often require significant renovation. Renovation costs for kominka can range from ¥10 million to ¥30 million or more depending on the extent of work.

Understanding Additional Costs

Purchasing a home in Japan involves various expenses beyond the initial price, including several taxes. The real estate acquisition tax, a one-time local tax, is 3% for residential land and housing, based on the assessed value. The registration and license tax is levied when property ownership is registered, with rates ranging from 0.1% to 2% of the taxable basis.

Annual property taxes include the Fixed Asset Tax and the City Planning Tax. The Fixed Asset Tax is levied at 1.4% of the property’s assessed value. The City Planning Tax has a rate of 0.3% of the assessed value.

Real estate agent fees are a significant cost. The maximum legal commission for property sales is calculated as (sales price x 3% + ¥60,000) plus consumption tax. Both the buyer and seller pay a commission to their agents.

Renovation and repair costs can add to homeownership expenses. Older homes require significant renovations, ranging from ¥5 million to ¥15 million. Major structural overhauls or complete reconstructions can cost ¥15 million to ¥40 million or more.

Loan-related expenses include mortgage arrangement fees, guarantee fees, and insurance costs. Moving costs vary, with a single person’s move costing ¥20,000 to ¥60,000, and a family’s move ranging up to ¥200,000. Initial setup costs include utility setup. Ongoing costs include building management fees and repair reserve funds for apartments, along with general maintenance expenses.