How much does an apartment cost in Japan in 2025?

Authored by the expert who managed and guided the team behind the Japan Property Pack

Everything you need to know before buying real estate is included in our Japan Property Pack

Who is the author of this content?

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.

How this content was created 🔎📝

At BambooRoutes, we explore the Japanese real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Tokyo, Osaka, and Fukuoka. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

How much does an apartment cost in Japan in 2025?

Apartment prices in Japan span from ¥20 million for rural properties to ¥150 million for premium Tokyo central units as of September 2025.

Tokyo central apartments (23 wards) average ¥116.3 million for a typical 70-80m² unit, while Tokyo outer wards offer more affordable options at ¥28-35 million. Osaka apartments cost ¥55-57 million for new condos, with Fukuoka commanding similar prices at ¥56 million despite offering newer amenities.

Rural areas present the most affordable entry point at ¥20 million for decent-sized apartments. The stark price differences reflect location premiums, with central Tokyo commanding the highest prices due to international demand and limited land supply. Used apartments typically cost 20-30% less than new construction across all markets.

Studio apartments start at ¥10-25 million in central areas, while family-sized units (70m²+) represent the majority of transactions. Property age significantly impacts pricing, with buildings over 20 years old selling at substantial discounts to new construction.

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

What are the average prices for different property types in major cities?

City	New Condos (70m²)	Used Condos (70m²)	Price per m² (New)
Tokyo Central	¥110-150M	¥80-100M	¥1.1-1.5M
Tokyo Outer	¥28-35M	¥20-28M	¥400-500K
Osaka	¥55-57M	¥35-45M	¥875K
Fukuoka	¥56M	¥40-48M	¥700K
Sapporo	¥51.5M	¥35-42M	¥600K
Kyoto	¥48-52M	¥32-40M	¥650K
Hiroshima	¥45M	¥30-38M	¥550K

How do apartment prices vary by location and size?

Location drives the most significant price variations in Japanese apartment markets, with central Tokyo commanding 5-7 times rural property prices.

Within Tokyo, proximity to major train stations creates price premiums of 20-40% compared to areas requiring bus connections. Walking distance to JR Yamanote Line stations adds ¥10-20 million to apartment values. Central wards like Minato, Shibuya, and Chiyoda maintain the highest per-square-meter prices at ¥1.1-1.5 million.

Size scaling follows predictable patterns, with studios (20-30m²) costing ¥15-25 million in central Tokyo, while larger family units (80m²+) reach ¥120-180 million. Per-square-meter costs decrease slightly for larger units due to efficiency gains in common areas and shared amenities.

Floor level impacts pricing by 3-8%, with higher floors commanding premiums for views and reduced noise. Buildings with elevator access add 15-25% to overall values compared to walk-up properties. Age remains a critical factor, with properties under 10 years old maintaining 80-90% of new construction values.

Neighborhood characteristics like school districts, shopping access, and earthquake resistance certifications influence prices by 10-30% within the same general area.

What is the total cost of purchasing an apartment including all fees?

Total apartment ownership costs include 10-11% upfront fees plus annual expenses averaging ¥300,000-500,000 for a typical 70m² unit.

Upfront purchase costs break down as follows: real estate agent fees at 3% of purchase price, legal and notary fees at 1-1.4%, Real Estate Acquisition Tax at 3-4% of appraised value, and registration tax at 0.4% for new properties or 2% for used properties. Consumption tax adds 10% on the building portion (excluding land value).

Annual recurring expenses include management and maintenance fees averaging ¥28,748 monthly for 60m² units in Tokyo, though luxury buildings can reach ¥50,000+ monthly. Fixed Asset Tax applies at 1.4% annually on appraised values, while City Planning Tax adds up to 0.3% annually. Condominium repair funds require additional monthly contributions of ¥4,000-10,000.

Insurance costs typically run ¥30,000-80,000 annually depending on coverage levels and building type. Utility setup fees add ¥20,000-50,000 for initial connections to electricity, gas, and water services.

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

What are typical mortgage rates and monthly payments for buyers?

Japanese mortgage rates range from 0.53% for variable loans to 1.95% for fixed-rate Flat 35 mortgages as of September 2025.

Variable rate mortgages offer the lowest starting rates at 0.53-0.73%, though they carry interest rate risk over the loan term. Fixed-rate Flat 35 loans provide stability at 1.95% for 35-year terms, making them popular with foreign buyers seeking predictable payments. Banks typically require 20% down payments, though some lenders accept 10% down for qualified borrowers.

Monthly payment calculations for a ¥56 million apartment with 80% financing at 1.95% over 35 years result in approximately ¥158,000 monthly for principal and interest. This excludes property taxes, insurance, and maintenance fees that add ¥30,000-50,000 monthly to total housing costs.

Qualification requirements limit monthly debt service to 25-35% of gross income, with maximum loan amounts typically capped at 7-8 times annual income. Foreign buyers face additional documentation requirements and may need higher down payments depending on visa status and employment history.

Bank processing fees add ¥200,000-500,000 to loan origination costs, while mortgage insurance may be required for loans exceeding 80% loan-to-value ratios.

How do rental yields compare for short-term versus long-term rentals?

Long-term rental yields in Japan range from 2.5% in central Tokyo to 10% in regional cities, while short-term rentals can achieve 6-7% premiums in prime tourist areas.

Tokyo central apartments generate 2.5-5.2% gross yields through traditional long-term leasing, with averages around 3.4% for typical investment properties. Short-term rental platforms like Airbnb can boost yields to 4-6% in tourist-heavy areas like Shibuya and Shinjuku, though this requires active management and carries regulatory risks.

Osaka offers stronger fundamentals with 4.5-7% yields for long-term rentals, reaching 6-7% for well-positioned short-term rental properties near Osaka Castle or Universal Studios. Fukuoka delivers the highest yields at 4.2-10%, with short-term rentals capitalizing on business travel and cruise ship tourism.

Short-term rental regulations vary by municipality, with some areas restricting operations to specific zones or requiring expensive licensing. Management costs run 15-25% of gross income for short-term rentals versus 5-8% for long-term properties. Vacancy rates impact short-term rentals more severely during economic downturns or travel restrictions.

Tax implications differ significantly, with short-term rental income often classified as business income subject to higher tax rates and additional compliance requirements.

What are the best neighborhoods for different investment goals?

Investment strategies determine optimal neighborhood selection, with central Tokyo offering appreciation potential while regional cities provide higher current yields.

For personal use and lifestyle, Tokyo's Shibuya, Minato, and Meguro wards provide vibrant urban living with strong appreciation prospects. These areas offer excellent transportation access, international dining, and cultural amenities that appeal to expatriate residents. Rental demand remains consistently strong due to corporate relocations and embassy proximity.

Investment-focused buyers should consider Tokyo's outer wards like Adachi and Katsushika for higher rental yields and lower entry costs. These areas benefit from improving infrastructure while maintaining affordability for local renters. Properties near major train lines in these wards often outperform central locations on yield metrics.

Osaka's Umeda and Namba districts excel for both personal use and rental income, offering urban conveniences with better affordability than Tokyo. Suita provides family-friendly suburban options with steady appreciation and rental demand from young professionals.

Fukuoka's Tenjin offers downtown living with strong rental yields, while Hakata appeals to business travelers and provides excellent transportation connections. Momochihama delivers modern seaside living with growing international appeal.

Regional cities like Sapporo and Hiroshima offer entry-level investment opportunities with yields exceeding 6% but limited appreciation potential compared to major metropolitan areas.

How have apartment prices changed over the past five years?

Japanese apartment prices surged 37.5% in Tokyo over the past five years, with regional cities following similar upward trends driven by monetary policy and international investment.

Tokyo apartment prices accelerated dramatically from 2021-2025, posting annual gains of 10.7% in 2025 and 8.4% in 2024. This represents the strongest sustained growth period since the 1980s bubble, fueled by ultra-low interest rates, limited new supply, and increased foreign investment flows.

Osaka delivered 9.4% annual growth in 2025, maintaining robust 6-8% appreciation in prior years as the city benefits from tourism recovery and infrastructure improvements for the 2025 World Expo. Regional cities like Fukuoka achieved 9.0% land value appreciation in 2025, reflecting growing recognition of investment opportunities outside Tokyo.

The COVID-19 pandemic initially slowed price growth in 2020-2021, but recovery accelerated as international borders reopened and remote work policies increased housing demand. Supply constraints in desirable neighborhoods amplified price increases as construction costs rose 15-20% over the period.

Used apartment prices lagged new construction appreciation by 2-3 percentage points annually, though central Tokyo used properties still achieved 25-30% cumulative gains over five years.

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 is the forecast for apartment prices over the next decade?

Japanese apartment prices are projected to moderate from current growth rates, with Tokyo expecting 5-6% annual appreciation through 2026 before settling into 3-5% long-term growth.

Short-term forecasts through 2026 remain optimistic, with Tokyo central apartments likely to continue 5-6% annual growth supported by ongoing foreign investment and limited supply. Regional cities like Fukuoka and Osaka should maintain strong performance with 4-7% annual appreciation as infrastructure projects and tourism recovery sustain demand.

Medium-term projections for 2027-2030 suggest moderation to 3-5% annual growth as interest rates potentially normalize and supply increases from current construction projects. Demographics present challenges with Japan's aging population and declining household formation rates, though urban concentration trends may offset rural population decline impacts.

Long-term outlook through 2035 depends heavily on immigration policy and economic restructuring. Prime international areas in Tokyo, Osaka, and Fukuoka should outperform national averages due to continued globalization trends. Rural and secondary city markets face potential stagnation or decline without significant policy interventions.

Risk factors include potential interest rate increases, reduced foreign investment flows, and accelerating demographic decline. However, inflation hedging characteristics and limited land supply in major cities support continued long-term value appreciation.

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

How do Japanese apartment prices compare to other global cities?

Japanese apartment prices offer significant value compared to other major financial centers, with Tokyo central units costing 30-50% less per square meter than New York, London, or Paris equivalents.

Tokyo central apartments average ¥1.1-1.5 million per square meter (US$7,400-10,100), while comparable areas in Manhattan exceed US$15,000-25,000 per square meter. London's prime central areas command US$12,000-20,000 per square meter, with Paris reaching similar levels in arrondissements 1-8.

Quality comparisons favor Japan significantly, with newer construction standards, earthquake resistance, and sophisticated building management systems. Japanese apartments typically include more built-in storage and efficient space utilization compared to older European or American properties at similar price points.

Operating costs in Japan run lower than most global cities, with property taxes at 1.4% annually versus 2-4% in major US cities. Maintenance standards remain high while costs stay reasonable due to efficient management practices and competitive service markets.

Currency considerations affect international buyers, with yen weakness in recent years making Japanese real estate increasingly attractive to dollar and euro holders. Transaction costs in Japan at 10-11% align with global standards, though financing options may be more limited for foreign buyers.

Rental yields in Japan often exceed those available in other major cities, with Tokyo's 3-5% yields comparing favorably to sub-2% yields common in central London or New York.

What factors drive apartment price variations within cities?

1. **Transportation access and station proximity** - Properties within 5-minute walks of major train stations command 20-40% premiums over areas requiring bus connections or longer walks.2. **Neighborhood prestige and international appeal** - Areas with embassy districts, international schools, and expatriate communities maintain higher values and stronger appreciation trends.3. **Building age and construction quality** - Properties under 10 years old retain 80-90% of new construction values, while buildings over 30 years old may sell at 40-60% discounts.4. **Floor level and view quality** - Higher floors with city or mountain views add 3-8% premiums, while ground floor units often sell at 5-10% discounts due to privacy and security concerns.5. **Earthquake resistance and safety certifications** - Buildings meeting current seismic standards command significant premiums, especially after major earthquakes highlight safety concerns.6. **Local amenities and lifestyle factors** - Proximity to quality schools, hospitals, shopping districts, and parks influences pricing by 10-30% within the same general area.

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. BambooRoutes - How Much Does an Apartment Cost in Japan
2. BambooRoutes - Average Tokyo Apartment Prices
3. E-Housing Japan - House Prices in Japan
4. E-Housing Japan - Apartment Sizes in Japan
5. A-Realty Blog - Average Cost of Homes in Japan
6. Global Property Guide - Japan Taxes and Costs
7. Sugee Housing - Property Taxes in Japan
8. E-Housing Japan - Property Tax Guide
9. Nippon.com - Japan Housing Data
10. BambooRoutes - Tokyo Apartment Maintenance Fees