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Japan's property market continues to deliver robust growth in 2025, with Tokyo leading the charge at average apartment prices of ¥116.3 million for new units. The Japanese residential real estate sector offers distinct opportunities across major metropolitan areas, from budget-friendly regional properties starting at ¥20 million to luxury Tokyo condominiums exceeding ¥150 million. Property prices vary dramatically between central urban districts and rural areas, with Tokyo commanding premiums up to 400% higher than outer regions.
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As of September 2025, Japan's residential property market shows strong momentum with Tokyo new apartments averaging ¥116.3 million ($820,000) and used apartments at ¥44.5 million ($310,000).
Regional cities like Osaka and Fukuoka offer more accessible entry points with new condominiums ranging from ¥55-60 million, while rural properties remain available from ¥20-25 million.
| Location | New Apartments (70m²) | Used Apartments (70m²) | Price per m² |
|---|---|---|---|
| Tokyo (Central 23 Wards) | ¥116.3M ($820,000) | ¥44.5M ($310,000) | ¥1,100,000-¥1,500,000 |
| Osaka | ¥55-57M ($390,000-$410,000) | ¥33.4M ($234,000) | ¥477,000 |
| Kyoto | ¥60M ($430,000) | ¥42M ($295,000) | ¥650,000-¥850,000 |
| Fukuoka | ¥56M ($400,000) | ¥39M ($275,000) | ¥700,000-¥800,000 |
| Rural Areas | ¥20-25M ($143,000-$179,000) | ¥15-20M ($107,000-$143,000) | ¥200,000-¥350,000 |
What's the average property price in Japan right now?
As of September 2025, Japan's residential property market shows significant regional variation in pricing.
The national average for properties varies dramatically by location, with rural properties starting from ¥20-25 million ($143,000-$179,000) and major city averages ranging from ¥50-60 million ($357,000-$430,000). Tokyo commands the highest prices nationwide, with new apartments in the 23 central wards averaging ¥116.3 million (approximately $820,000) and used apartments at ¥44.5 million (approximately $310,000).
Major regional cities offer more accessible entry points for property buyers. Osaka new condominiums average ¥55-57 million ($390,000-$410,000), while existing condos average ¥477,000 per square meter. Kyoto properties average ¥60 million ($430,000), and Fukuoka maintains an average of ¥56 million ($400,000) for new residential units.
The Japanese property market demonstrates strong momentum in 2025, with price growth continuing across most metropolitan areas. This upward trend reflects ongoing urban migration, infrastructure development, and sustained demand from both domestic and international buyers.
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How do prices differ between apartments, houses, and luxury properties?
Property type significantly impacts pricing across Japan's residential market.
In Tokyo, studio and 1LDK apartments range from ¥30-50 million for new units, while 2LDK properties command ¥100-150 million and larger 3LDK units exceed ¥150 million. Used apartments in Tokyo's 23 wards average ¥44.5 million, providing a more accessible entry point for buyers seeking established properties.
Detached houses represent the premium segment of Japan's residential market, particularly in Tokyo where prime ward properties frequently exceed ¥100 million. These standalone properties offer greater space and privacy but come with significantly higher price tags compared to condominium units of similar square footage.
Luxury properties in prestigious neighborhoods command substantial premiums. In Tokyo's Minato and Shibuya wards, luxury condominiums range from ¥110-150 million and above. Osaka's central districts including Namba and Kita see luxury units priced above ¥65 million, while Fukuoka's premium areas like Momochi and Ohori range from ¥80-150 million.
What are the price differences across major cities compared to smaller cities or rural areas?
Geographic location creates dramatic price variations across Japan's property landscape.
| Location Type | Average Price Range | Price per m² |
|---|---|---|
| Central Tokyo (23 Wards) | ¥44M - ¥116M ($310K - $820K) | ¥1,100,000 - ¥1,500,000 |
| Outer Tokyo | ¥28M - ¥52M ($200K - $370K) | ¥400,000 - ¥500,000 |
| Osaka (Central) | ¥33M - ¥57M ($234K - $410K) | ¥477,000 - ¥650,000 |
| Regional Cities (Fukuoka, Kyoto) | ¥39M - ¥60M ($275K - $430K) | ¥650,000 - ¥850,000 |
| Smaller Cities | ¥15M - ¥35M ($107K - $250K) | ¥300,000 - ¥500,000 |
| Rural Areas | ¥10M - ¥25M ($71K - $179K) | ¥200,000 - ¥350,000 |
Central Tokyo commands premiums up to 400% higher than outer wards and several times higher than rural properties. This price differential reflects the concentration of employment opportunities, infrastructure quality, and lifestyle amenities in major metropolitan centers.
How much does price vary depending on the size or surface area of the property?
Property size directly correlates with total price, though price per square meter varies significantly by location and quality.
In central Tokyo, new properties command ¥1,100,000-¥1,500,000 per square meter, making a standard 70m² apartment cost ¥77-105 million. Outer Tokyo areas offer more affordable rates at ¥400,000-¥500,000 per square meter, bringing the same 70m² unit to ¥28-35 million.
Osaka's existing condominium market averages ¥477,000 per square meter, while new constructions command slightly higher premiums. Fukuoka presents premium pricing at ¥700,000-¥800,000 per square meter in desirable areas, dropping to ¥300,000-¥500,000 per square meter in budget-friendly districts.
Larger properties benefit from economies of scale in some markets, though premium neighborhoods maintain high per-square-meter pricing regardless of unit size. Rural properties offer the most dramatic size advantages, with substantial houses available for prices equivalent to small Tokyo apartments.
What is the typical total cost including fees, taxes, and registration when buying a property in Japan?
Property acquisition in Japan involves multiple additional costs beyond the purchase price.
| Cost Component | Rate/Amount | Notes |
|---|---|---|
| Agent Fee | 3% + ¥60,000 (+10% tax) | Standard real estate commission |
| Stamp Duty | ¥10,000 - ¥60,000 | Based on property price bracket |
| Registration & License Tax | 1.5% land, 0.3-2% building | Varies for new vs. used properties |
| Acquisition Tax | 3% (discounted until 2027) | Standard rate 4% after discount period |
| Consumption Tax | 10% on building value | Applied to building, not land |
| Other Professional Fees | ¥50,000 - ¥150,000 | Judicial scrivener, insurance, reserves |
The total additional cost typically ranges from 6-8% of the property purchase price. For a ¥50 million property, buyers should budget an additional ¥3-4 million for transaction costs and taxes.
How do mortgage options and interest rates affect the real cost of purchasing?
Japan's mortgage market offers favorable conditions for qualified borrowers in 2025.
Variable interest rates remain exceptionally low at 0.28-0.73%, though median rates tend toward the higher end of this range. Fixed-rate mortgages show significantly higher costs, with 5-year fixed rates from city banks reaching a median of 4.11% as of March 2025.
Down payment requirements typically range from 10-20% for Japanese residents, with higher requirements for non-resident investors. Mortgage accessibility depends heavily on demonstrating Japanese income or established residency status, making financing more challenging for international buyers without local employment.
The interest rate environment significantly impacts total ownership costs. A ¥50 million mortgage at 0.5% variable rate costs approximately ¥140,000 monthly over 30 years, while the same amount at 4.1% fixed rate increases monthly payments to approximately ¥240,000. These financing costs can add ¥10-20 million to the total property cost over a typical mortgage term.
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If I want to buy to live in, what are the smartest areas and property types today?
Residential buyers should prioritize transit accessibility and neighborhood amenities when selecting properties in Japan.
Tokyo offers the best career opportunities and lifestyle amenities, with 1LDK and 2LDK units in established central wards or high-amenity outer wards providing optimal value. Transit access remains crucial for daily commuting, making properties near major train lines significantly more desirable and valuable long-term.
Suburban options in greater Tokyo, including Saitama and Yokohama, provide more space and family-friendly environments at lower price points. These areas offer better value for families seeking larger properties while maintaining reasonable commute times to central Tokyo employment centers.
Fukuoka presents exceptional value for lifestyle-focused buyers, combining urban amenities with more affordable pricing. The city shows strong growth potential driven by young professional migration and technology sector expansion, making it attractive for both immediate livability and future appreciation.
Regional cities like Sendai, Nagoya, and Sapporo offer affordable urban living with good infrastructure and cultural amenities, though with more limited international connectivity and career opportunities compared to major metropolitan areas.
If I want to buy to rent out, what are the best choices for short-term versus long-term rentals?
Rental investment strategies require different approaches for short-term versus long-term tenant markets.
Short-term rental opportunities concentrate in tourist and business districts across Tokyo, Kyoto, Osaka, Okinawa, and Hokkaido. Tokyo's business and tourist neighborhoods provide steady corporate and international visitor demand, while Kyoto offers tourist-focused opportunities despite strict regulatory requirements. Osaka's entertainment districts, expo areas, and bay developments show strong short-term rental potential.
Long-term rental investments perform best in areas with stable employment and educational institutions. Central Tokyo properties targeting working professionals offer consistent demand but lower yields due to high acquisition costs. Regional cities including Sapporo, Nagoya, Sendai, and Fukuoka provide better yields ranging from 4.5-5.1% while maintaining steady tenant demand from students and expatriate workers.
Suburban condominium investments in growing commuter belts offer attractive combinations of stability and yield, typically outperforming central Tokyo properties in terms of rental returns. These properties benefit from urban growth while avoiding the premium pricing of central districts.
It's something we develop in our Japan property pack.
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.
If I want to buy to resell later, which areas or property types show the best appreciation potential?
Capital appreciation strategies should focus on areas with planned infrastructure development and urban renewal projects.
Tokyo redevelopment zones including Sumida, Toranomon-Azabudai, and Koto districts show exceptional long-term growth potential due to major infrastructure investments and urban planning initiatives. These areas benefit from government-backed development programs and significant private sector investment.
Osaka central districts including Namba, Kita, Tennoji, and bay areas continue benefiting from Expo 2025 preparations and related infrastructure improvements. The expo impact extends beyond the event itself, creating lasting infrastructure and international recognition benefits for surrounding property values.
Fukuoka demonstrates the strongest consistent appreciation trend, maintaining 13 consecutive years of price increases driven by technology sector growth, young professional migration, and supply constraints. The city's combination of affordable entry prices and strong growth fundamentals makes it particularly attractive for appreciation-focused investors.
Investors should avoid rural and aging population areas unless backed by specific government subsidies or development programs, as these locations typically show minimal appreciation potential and may face declining demand over time.
What are some example purchase prices right now in expensive neighborhoods, up-and-coming districts, and more budget-friendly areas?
Current market pricing demonstrates clear stratification across neighborhood categories throughout Japan.
| Neighborhood Category | Tokyo Examples | Osaka Examples | Fukuoka Examples |
|---|---|---|---|
| Luxury Districts | Minato, Shibuya: ¥140-150M | Namba, Kita: ¥60M+ | Momochi, Ohori: ¥80-150M |
| Up-and-Coming Areas | Sumida, Koto, Nakano: ¥52-56M | Naniwa, Joto: ¥45-55M | Yakuin, Nishijin: ¥40-65M |
| Budget-Friendly Options | Adachi, Katsushika: ¥28-35M | Outer districts: ¥28-35M | Hakozaki, Higashi: ¥20-35M |
| Suburban Alternatives | Saitama, Chiba: ¥20-30M | Surrounding prefectures: ¥18-28M | Metropolitan area: ¥15-25M |
These examples represent typical pricing for 70m² condominium units in each category. Luxury neighborhoods command premiums of 300-500% over budget-friendly alternatives within the same metropolitan area.
How have average prices changed compared to one year ago and five years ago?
Japan's property market demonstrates strong growth momentum across major metropolitan areas.
Tokyo property prices increased 7.8-10.7% year-over-year for apartments as of September 2025, with cumulative growth of 37.5% since 2021. This sustained appreciation reflects continued urban migration, infrastructure investment, and sustained demand from both domestic and international buyers.
Osaka shows robust growth with 9.4% year-over-year increases for condominiums and 5.8% for land values. The city experienced 8-10% growth throughout 2025, with Expo-related districts showing 20-30% appreciation since the event announcement. This growth trajectory positions Osaka among Japan's strongest performing property markets.
Fukuoka leads regional appreciation with some neighborhoods showing 40% year-over-year increases and city-wide annual appreciation of 9%. The city's 13-year consecutive growth streak demonstrates exceptional consistency in an otherwise volatile global property environment.
Five-year trends show Japan's major metropolitan areas significantly outperforming rural regions, with Tokyo and Osaka properties doubling or tripling rural area appreciation rates during this period.
What is the forecast for property prices in Japan over the next one, five, and ten years, and how does Japan compare with other major global cities?
Japan's property market outlook shows continued strength with moderated growth expectations.
Short-term forecasts for 2025-2026 project continued price growth of 5-7% annually for Tokyo and Osaka properties, driven by ongoing infrastructure development, urban migration trends, and sustained demand. Fukuoka's high appreciation potential continues due to technology sector expansion and supply constraints.
Medium-term projections for 2026-2030 expect growth moderation to 3-5% annually as markets mature and affordability constraints begin affecting demand. This normalization reflects natural market cycles and potential macroeconomic headwinds including demographic challenges and interest rate environment changes.
Long-term outlook beyond 2030 suggests stable pricing with modest appreciation, though this depends heavily on government policy responses to demographic transitions and economic structural changes. Infrastructure investment and urban planning initiatives will likely drive selective regional outperformance.
Global comparisons show Tokyo remaining more affordable per square meter than New York, London, Paris, Hong Kong, or Singapore, while ranking among Asia's most expensive cities. This positioning suggests continued international investment appeal, particularly as other global markets reach affordability limits.
Risk factors including demographic challenges, potential interest rate increases, and macroeconomic uncertainty could slow price growth, though current market fundamentals remain strong across major metropolitan areas.
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.
Japan's property market in 2025 offers diverse opportunities for both residential buyers and investors, with clear pricing stratification across metropolitan areas and property types.
Success in Japan's real estate market requires understanding regional dynamics, transaction costs, and financing options while considering long-term demographic and economic trends affecting different market segments.
Sources
- BambooRoutes - Average House Price Japan
- E-Housing Japan - House Prices
- BambooRoutes - Tokyo Apartment Prices
- BambooRoutes - Osaka Price Forecasts
- Expatis - Buying House Japan
- BambooRoutes - Fukuoka House Prices
- BambooRoutes - Fukuoka Property
- EmLabo - Tokyo Real Estate Costs
- Tokyo Portfolio - Market Trends
- BambooRoutes - Japan Price Forecasts