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Property prices in Japan vary dramatically between major cities and rural areas, with Tokyo commanding the highest prices per square meter in the country. Understanding the price structure across different property types and regions is essential for making informed investment or relocation decisions in the Japanese real estate market.
If you want to go deeper, you can check our pack of documents related to the real estate market in Japan, based on reliable facts and data, not opinions or rumors.
As of September 2025, Tokyo's central wards command ¥1,100,000–¥1,500,000 per square meter for new apartments, while rural Japan offers properties at ¥200,000–250,000 per square meter.
Property prices have risen significantly in major cities over the past five years, with Tokyo new condos up 37.5%, while mortgage rates remain low at 0.28–0.73% for variable loans.
| Location | New Apartments (¥/m²) | Used Apartments (¥/m²) | Land Price (¥/m²) |
|---|---|---|---|
| Tokyo Central Wards | 1,100,000–1,500,000 | 800,000–1,000,000 | 771,600 (avg) |
| Osaka City | 875,000 | 477,000 | 265,000–376,222 |
| Kyoto | 600,000–700,000 | 400,000–550,000 | 153,600 |
| Fukuoka | Similar to Osaka | Similar to Osaka | 300,000–600,000 |
| Rural Japan | -- | -- | 20,000–50,000 |
What is the average price per square meter in Japan right now?
As of September 2025, property prices per square meter in Japan vary dramatically by location and property type.
Tokyo's central wards command the highest prices, with new apartments ranging from ¥1,100,000 to ¥1,500,000 per square meter ($7,400 per square meter). Used apartments in central Tokyo typically cost ¥800,000 to ¥1,000,000 per square meter ($5,400–$6,700 per square meter).
Major regional cities offer more affordable options. Osaka new apartments average ¥875,000 per square meter ($5,800 per square meter), while used apartments cost around ¥477,000 per square meter ($3,170 per square meter). Kyoto residential land averages ¥153,600 per square meter, with condo prices typically falling between Osaka and rural market levels.
Rural Japan presents the most affordable opportunities, with houses often priced at ¥200,000–250,000 per square meter for properties around 100 square meters, though these frequently include large lots and some akiya (vacant houses) are available for significantly less.
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How do prices differ between apartments, houses, and land?
Apartments command the highest price per square meter, especially new builds in central locations.
New apartment condos in central Tokyo cost the most per square meter due to their prime locations and modern amenities. These properties typically range from ¥1,100,000 to ¥1,500,000 per square meter in central wards like Chiyoda, Minato, and Shibuya.
Houses offer lower price per square meter than central apartments, but total costs vary significantly based on land value and property size. A new detached house in outer Tokyo averages around ¥55,000,000 ($393,000) total, which often provides better value per square meter when including the land component.
Land-only purchases vary dramatically by location. Central Tokyo residential land typically costs ¥771,600 per square meter, while prime commercial land in areas like Akasaka can reach ¥5,900,000 per square meter. Osaka residential land averages ¥282,800 per square meter, with commercial land reaching up to ¥2,237,200 per square meter.
Rural land offers the most affordable entry point, often starting at ¥20,000–50,000 per square meter, making it attractive for those seeking larger properties or development opportunities.
How does the price per square meter vary between Tokyo, Osaka, Kyoto, and smaller cities?
| City/Area | New Apartments (¥/m²) | Used Apartments (¥/m²) | Land Price (¥/m²) |
|---|---|---|---|
| Tokyo Central Wards | 1,100,000–1,500,000 | 800,000–1,000,000 | 771,600 (average) |
| Tokyo Outer Wards | 600,000–800,000 | 400,000–500,000 | 300,000–500,000 |
| Osaka City | 875,000 | 477,000 | 265,000–376,222 |
| Kyoto City | 600,000–700,000 | 400,000–550,000 | 153,600 |
| Fukuoka | Similar to Osaka | Similar to Osaka | 300,000–600,000 |
| Other Major Cities | 400,000–700,000 | 300,000–500,000 | 100,000–400,000 |
| Smaller Cities/Rural | 200,000–400,000 | 150,000–300,000 | 20,000–100,000 |
What are the most expensive areas, the most affordable ones, and the up-and-coming neighborhoods?
The most expensive areas in Japan center around Tokyo's premium wards.
Chiyoda ward commands the highest prices at ¥2,500,000 per square meter, followed by Minato ward at ¥2,000,000 per square meter, and Shibuya at ¥1,500,000 per square meter. These areas offer prestige, convenience, and strong rental demand but require significant capital investment.
The most affordable options exist in Tokyo's outer wards and rural areas nationwide. Adachi and Katsushika wards offer prices around ¥400,000–500,000 per square meter, providing access to Tokyo's job market and infrastructure at more reasonable costs. Rural areas across Japan offer the lowest prices, often under ¥100,000 per square meter for land.
Up-and-coming neighborhoods present the best growth potential. Areas near new transit infrastructure and redevelopment projects, including parts of Shinagawa, ongoing Shibuya redevelopment zones, and Nakano, offer mid-range pricing with strong appreciation prospects. Look for locations near new universities, rail stations, or designated "compact city" development plans for the best long-term value.
Regional cities like Fukuoka also present emerging opportunities, with prices similar to Osaka but potentially higher growth due to business expansion and population concentration trends.
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How much does surface size affect the price per square meter?
Larger properties typically offer better value per square meter than smaller units in the same location.
This inverse relationship is most pronounced in the apartment market, where compact studio apartments command premium per-square-meter rates due to high land costs and construction efficiencies. A 30-square-meter studio in central Tokyo might cost ¥1,200,000 per square meter, while a 70-square-meter apartment in the same building could average ¥1,000,000 per square meter.
For detached houses and land purchases, the size effect becomes even more significant. Larger plots often provide better per-square-meter value because infrastructure costs (utilities, access roads) get distributed across more area. A 100-square-meter lot might cost ¥800,000 per square meter, while a 300-square-meter lot in the same area could average ¥600,000 per square meter.
However, this rule has exceptions in luxury segments. Ultra-premium properties and estates with unique features or locations can command higher per-square-meter prices regardless of size, as they target buyers focused on exclusivity rather than value optimization.
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What is the typical total purchase price including fees, taxes, and closing costs?
Total property purchase costs in Japan typically add 6–10% above the listed property price.
For a ¥52,000,000 property, expect additional costs of ¥3.6–5.2 million, bringing the total to ¥55–57 million. These costs include transfer registration fees, acquisition taxes, broker commissions, and legal documentation.
The percentage of additional costs increases significantly for lower-priced properties. For a ¥1 million property, extra costs can reach 66% of the purchase price due to minimum fees and fixed charges that don't scale proportionally.
Buyer's down payment requirements typically range from 10–20% for standard purchases, with higher requirements for non-residents or pure investment properties. Foreign buyers may face additional documentation requirements and potentially higher down payment expectations from lenders.
Specific cost components include acquisition tax (3–4% of assessed value), registration fees (0.4–2% of property value), broker commission (up to 3% plus ¥60,000), and various administrative fees. Property inspection and legal consultation costs add another ¥200,000–500,000 to the transaction.
How do mortgage rates and loan terms affect the overall cost of buying in Japan?
Japanese mortgage rates remain among the world's lowest, though they have increased slightly in 2025.
Variable rates currently range from 0.28–0.73%, with bank median rates around 2.63%. Five-year fixed rates average 4.1%, while the government-backed Flat 35 long-term fixed program offers rates between 1.95–3.7%.
Loan fees add up to 2.2% of the loan amount, including origination fees, guarantee company fees, and administrative costs. These upfront costs can significantly impact the total cost of financing, especially for smaller loan amounts.
Rising rates in early 2025 have increased monthly payment costs, though they remain low by international standards. A ¥40 million loan at 0.5% variable rate costs approximately ¥103,000 monthly over 35 years, compared to ¥118,000 at 1.5% fixed rate.
Foreign residents face additional requirements including longer residency history, higher income verification standards, and potentially higher rates. Some banks require permanent residency status, while others accept temporary residents with stable employment contracts.
What are some concrete examples of actual purchase prices across different regions and property types?
Recent property transactions demonstrate the significant price variations across Japan's real estate market.
1. **New Tokyo apartment (70m², central ward)**: ¥116.3 million (~¥1.66 million per square meter) - Premium location with modern amenities and excellent transport access.2. **Used Tokyo apartment (70m², outer ward)**: ¥28–35 million (~¥400,000–500,000 per square meter) - Good value for Tokyo access with established neighborhoods and infrastructure.3. **Osaka new condo (65m²)**: ¥55–57 million (~¥875,000 per square meter) - Major city convenience at significantly lower cost than Tokyo equivalent.4. **Osaka used condo (60m²)**: ¥18–45 million (~¥300,000–750,000 per square meter) - Wide range depending on specific location, age, and condition within Osaka metropolitan area.5. **Rural detached house (100m² + land)**: ¥20–25 million - Often includes substantial land plots and potential for renovation or expansion projects.How have property prices changed compared to five years ago and compared to one year ago?
Japanese property markets have shown mixed performance with strong urban growth contrasting rural stagnation.
Tokyo new condos have surged 37.5% over the past five years, with 5–7% growth in the last year alone. This reflects continued demand concentration in the capital region and limited new supply in prime locations.
Osaka markets show more nuanced trends. New condos declined 5% year-over-year, while used condos gained 9%, suggesting buyers are seeking value alternatives as new construction costs rise.
The national real estate price index dropped 2.5% year-over-year, but this figure masks strong urban growth by averaging in rural decline. Rural and smaller city markets continue struggling with population decline and excess housing supply.
Regional variations remain stark. Cities with population growth, new infrastructure, or tourism development have seen continued appreciation, while areas facing demographic decline experience ongoing price pressure.
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.
What are the forecasts for property prices in one year, five years, and ten years?
Property price forecasts for Japan show continued urban growth with regional divergence.
Tokyo and major cities are expected to see 5–6% growth in 2025–2026, driven by continued population concentration, redevelopment projects, and limited supply in prime areas. Strong employment markets and infrastructure investment support this positive outlook.
Five-year projections suggest 20–30% appreciation by 2030 for major urban markets. This growth assumes continued economic stability, population migration to cities, and ongoing urban redevelopment initiatives across Tokyo, Osaka, and other major centers.
Ten-year forecasts become more uncertain but generally positive for well-located urban properties. Demographic trends favor cities over rural areas, and infrastructure investment continues focusing on major metropolitan regions.
Rural areas face continued stagnation or slight decline due to ongoing population loss and excess housing supply. However, select rural areas near major cities or with unique attractions may outperform broader rural trends.
Up-and-coming regional cities near infrastructure development present the best long-term appreciation potential, combining lower entry costs with growth catalysts.
What are the smartest buying choices today depending on your goals?
Optimal property choices vary significantly based on your primary objective and risk tolerance.
**For personal residence**: Central Tokyo offers stability and luxury but requires substantial capital. Outer wards and suburbs provide better space and value while maintaining reasonable access to employment centers. Consider areas with good school districts if you have children.
**For short-term rental investment**: Focus on Osaka, Fukuoka, and Kyoto near tourism sites and major transport hubs. These markets offer strong rental demand from both domestic and international travelers. Be aware of local regulations governing short-term rentals.
**For long-term rental investment**: Urban condos in established neighborhoods offer stable 3–4% rental yields with lower management requirements. Target areas with universities, business districts, or good transport connectivity for consistent tenant demand.
**For resale appreciation**: Buy in future redevelopment zones or near new infrastructure projects for maximum appreciation potential. Avoid rural properties and aging housing stock in saturated markets unless you can secure exceptional pricing.
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How does the cost of property in Japan compare with other major global cities?
| City | Average Price per m² (USD) | Relative to Tokyo |
|---|---|---|
| Tokyo | $7,411 | Baseline |
| New York | $15,000–25,000 | 2.0–3.4x higher |
| London | $12,000–20,000 | 1.6–2.7x higher |
| Paris | $8,000–15,000 | 1.1–2.0x higher |
| Singapore | $16,000–23,000 | 2.2–3.1x higher |
| Hong Kong | $20,000–30,000 | 2.7–4.0x higher |
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.
Tokyo represents excellent value compared to other global financial centers, offering world-class infrastructure and stability at significantly lower costs than New York, London, or Hong Kong.
The Japanese real estate market offers diverse opportunities from premium Tokyo apartments to affordable rural properties, with mortgage rates remaining favorable despite recent increases.
Sources
- BambooRoutes - Average Tokyo Apartment Price
- BambooRoutes - Average House Price Japan
- Global Property Guide - Japan Price History
- E-Housing - Japan Land Prices Rise
- E-Housing - How Much is a House in Japan
- InvestAsian - Tokyo Areas
- E-Housing - Most Expensive Parts of Tokyo
- BambooRoutes - Japan Real Estate Foreigner Tips
- Global Property Guide - Square Meter Prices
- Tokyo Portfolio - Cost of Living Comparison