The average house price in Japan in 2025

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BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Japan. If you'd like to learn more about us, you can check our presentation page.

What's the current average house price in Japan in 2025?

The nationwide average house price in Japan stands at ¥42.1 million ($280,000) for detached houses as of September 2025.

Tokyo dominates the premium market with 70m² apartments averaging ¥91.4 million ($653,000) in the 23 central wards. Central Tokyo wards command even higher prices, often exceeding ¥120 million ($860,000) for similar properties.

Regional cities like Osaka offer more moderate pricing at approximately ¥45 million ($320,000) for a 70m² secondhand apartment, while new condos reach around ¥55 million ($393,000). Kyoto and Fukuoka fall within the ¥55-60 million range ($393,000-$430,000), and Sapporo averages ¥51.5 million ($368,000).

Rural areas present exceptional value opportunities, with detached houses typically priced between ¥20-25 million ($143,000-$179,000). Some abandoned properties (akiya) in rural regions can be purchased for under ¥5 million ($36,000), though these often require significant renovation.

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How do prices differ depending on the type of property, like apartments, single-family homes, or luxury estates?

Property prices in Japan vary significantly based on type, location, and luxury level, with apartments generally commanding higher per-square-meter prices in urban areas.

What's the breakdown of average prices by region, from Tokyo and Osaka to more rural or upcoming areas?

Japanese real estate prices follow a clear urban-to-rural gradient, with Tokyo commanding the highest premiums followed by major regional cities.

Tokyo's 23 central wards represent the most expensive market, driven by commercial activity and expatriate demand. Minato, Shibuya, and Chiyoda wards often exceed ¥150 million ($1.07 million) for luxury 3-bedroom apartments.

Osaka, Kyoto, and Fukuoka form the second tier of premium urban markets, offering sophisticated city living at more accessible price points than Tokyo. These cities provide excellent infrastructure and cultural amenities while maintaining prices 30-40% below Tokyo levels.

Emerging cities like Sapporo show rapid growth potential, with central areas commanding ¥55 million ($393,000) for new 2-bedroom apartments. Yokohama and Sendai occupy middle positions between major urban centers and rural areas.

Rural and depopulating prefectures offer ultra-low prices but come with challenges including aging housing stock, limited infrastructure, and declining local economies. These areas suit buyers seeking affordable country living or renovation projects.

How does the average cost vary with property size or surface area?

Property costs in Japan directly correlate with size, with pricing typically calculated per square meter in urban markets.

New Tokyo condos average ¥1,116,000 per square meter ($7,411/m²) in central areas, while existing properties cost approximately ¥819,000 per square meter ($5,609/m²). This means a 70m² apartment ranges from ¥57-78 million ($391,000-$535,000) depending on condition and exact location.

Osaka shows more moderate per-square-meter pricing at roughly ¥643,000/m² for existing properties and ¥786,000/m² for new construction. A similar 70m² unit costs ¥45-55 million ($320,000-$393,000).

Rural properties operate on different economics, with larger detached houses often providing better value per square meter. A 150m² rural house might cost ¥20-25 million ($143,000-$179,000), translating to just ¥133,000-167,000 per square meter.

Size impacts extend beyond unit cost—larger properties in prime locations command premium prices due to scarcity, while compact efficiency apartments in urban areas maximize rental yield potential.

When you add in transaction costs, taxes, and fees, what does the total purchase price really look like?

Transaction costs in Japan typically add 6-8% to the purchase price, representing a significant additional expense buyers must budget for.

Acquisition tax ranges from 3-4% of the property value, forming the largest single additional cost. Stamp duty varies by purchase price, ranging from ¥200,000 to ¥600,000 depending on the property value.

Real estate agent fees follow a standard formula of approximately 3% plus ¥60,000, plus consumption tax. For a ¥50 million property, this equals roughly ¥1.76 million in agent fees.

Registration and notary fees combine to add another 0.4-2% of the purchase price. These cover legal documentation, property registration, and notarization services required for ownership transfer.

Additional costs include property inspection (¥100,000-300,000), mortgage arrangement fees (¥100,000-500,000), and property insurance. For a ¥50 million purchase, buyers should budget approximately ¥3-4 million in total transaction costs.

What are the typical mortgage rates and repayment options available right now?

Japanese mortgage rates in 2025 remain among the world's most favorable, with typical fixed rates ranging from 0.3% to 1.5% depending on loan duration and lender.

Most buyers choose 35-year fixed-rate loans or mixed-rate products that offer initial fixed periods followed by variable rates. Major Japanese banks including MUFG, Sumitomo Mitsui, and Mizuho compete aggressively on rates for qualified borrowers.

Down payment requirements typically range from 10-20% for Japanese residents, though foreign buyers may face higher requirements of 20-30%. Non-resident foreigners often encounter stricter lending criteria and may need larger down payments.

Repayment options include standard principal-and-interest loans, with some lenders offering interest-only periods for the first few years. Loan-to-value ratios commonly reach 80-90% for residents, while foreigners may be limited to 70-80%.

Pre-approval processes typically take 2-4 weeks, with final approval requiring 4-6 weeks. Income verification, employment stability, and credit history form the primary evaluation criteria.

If someone wants to buy to live in the property, what are the smartest choices?

For owner-occupiers, the smartest property choices in Japan balance proximity to work, schools, and lifestyle preferences with long-term value retention.

1. Tokyo suburbs - Areas like Setagaya, Suginami, or Nerima offer excellent train connections to central Tokyo while providing more space and family-friendly environments at lower prices than central wards.
2. Regional city centers - Osaka, Kyoto, and Fukuoka provide sophisticated urban living with excellent infrastructure, cultural amenities, and significantly lower costs than Tokyo.
3. Transportation hubs - Properties within walking distance of major train stations maintain strong value and provide convenience for daily commuting.
4. Established neighborhoods - Areas with good schools, shopping, and community infrastructure offer stability and quality of life for families.
5. New or renovated properties - While more expensive initially, newer properties require less immediate maintenance and meet current building standards.

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If someone wants to rent it out short term, what are the best areas and options?

Short-term rental investment in Japan focuses on high-traffic tourist zones, though operators must navigate local minpaku (short-term rental) regulations carefully.

Tokyo's Shibuya, Shinjuku, and Asakusa districts attract maximum tourist demand, commanding nightly rates of ¥8,000-15,000 for quality 1-2 bedroom apartments. Proximity to major attractions, train stations, and entertainment districts drives occupancy rates above 70%.

Osaka's Dotonbori and Namba areas offer excellent short-term rental potential, with tourists seeking authentic Japanese experiences. Properties near Osaka Castle or Universal Studios Japan command premium rates during peak seasons.

Kyoto's historic districts attract cultural tourists willing to pay premium rates for traditional or well-located modern apartments. However, the city has implemented strict regulations limiting short-term rentals in certain areas.

Operators must obtain proper licenses, comply with 180-day annual limits in many areas, and ensure properties meet safety and neighbor notification requirements. Professional management companies can handle compliance and operations for 15-25% of gross rental income.

It's something we develop in our Japan property pack.

If someone wants to rent it out long term, what works best?

Long-term rental investment in Japan favors regional cities and suburban Tokyo areas where yields reach 4-5% gross compared to central Tokyo's 3-4%.

Regional cities like Fukuoka and Sapporo offer the best combination of yield and tenant demand, with growing populations and strong job markets. University towns provide stable rental demand from students and faculty.

If someone wants to buy and resell later at a higher price, which strategies or locations make the most sense today?

Capital appreciation strategies in Japan focus on areas undergoing redevelopment, transportation improvements, or demographic shifts favoring urbanization.

Tokyo's emerging wards like Sumida and Koto benefit from Olympic infrastructure investments and ongoing urban regeneration projects. Properties near new train stations or major development projects show strongest appreciation potential.

Osaka's bay area and Fukuoka's waterfront districts represent growth opportunities as these cities expand their international business focus. Properties in areas designated for major infrastructure projects offer medium-term appreciation prospects.

Sapporo presents compelling growth potential with its expanding technology sector and increasing tourism. The city's central areas show consistent price appreciation as young professionals migrate from rural Hokkaido.

Avoid rural properties for capital appreciation—Japan's aging population and urbanization trends strongly favor cities. Focus on properties within 30 minutes of major employment centers and near planned infrastructure improvements.

Timing purchases during market corrections or seasonal lows can enhance returns, while holding periods of 5-10 years typically show the best appreciation results in stable markets.

What are some concrete examples of purchase prices in the most expensive, budget-friendly, and fast-rising neighborhoods?

Real purchase examples across Japan's property spectrum demonstrate the dramatic price variations between premium, affordable, and growth markets.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Japan versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

How have house prices changed compared to 5 years ago and 1 year ago, and what are the forecasts for 1, 5, and 10 years ahead—including how Japan compares with other big global cities?

Japanese property prices have experienced their strongest growth period since the 1991 bubble era, with Tokyo leading significant appreciation across multiple years.

Over the past five years, Tokyo property prices have surged 30-40%, representing annual growth rates of 5-11% depending on specific areas and property types. This growth represents the most sustained appreciation since Japan's economic bubble period.

Year-over-year data shows Tokyo prices up 10.7% in 2025, while nationwide averages increased 2.7%. This demonstrates the concentration of growth in major urban areas while rural markets remain relatively stable.

Short-term forecasts predict moderate continued growth in major cities, with annual appreciation of 4-6% expected for the next 1-2 years. Rural areas will likely maintain stable pricing with minimal appreciation.

Medium-term 5-year forecasts suggest steady but not explosive appreciation in Tokyo and other major cities, driven by continued urbanization and foreign investment. Long-term 10-year outlooks predict stable growth without dramatic corrections, barring major external economic shocks.

Compared to global cities, Tokyo remains more affordable than Hong Kong, Singapore, London, or New York on a per-square-meter basis. This relative affordability, combined with stable economic conditions, positions Japan favorably against other international real estate markets.

It's something we develop in our Japan property pack.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. Japan Price Forecasts - BambooRoutes
2. How Much is a House in Japan - E-Housing
3. Average House Price Japan - BambooRoutes
4. Buying a House in Japan Insights - Expatis
5. Japan Price History - Global Property Guide
6. Japan Residential Property Prices - Federal Reserve Economic Data
7. Japan Residential Property Prices - Trading Economics
8. Japan Monthly Residential Property Price Index - Statista