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As we reach mid-2025, Japan's residential property market continues to attract both local and international buyers.
Whether you're considering relocating to Japan or looking for investment opportunities, understanding apartment prices across different regions is crucial for making informed decisions.
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.
Apartment prices in Japan vary dramatically by location, with Tokyo's central wards averaging ¥110-150 million (US$780,000-$1,070,000) for standard units, while regional cities offer more affordable options.
The market shows steady growth with Tokyo leading appreciation rates, and experts predict continued urban growth despite potential interest rate adjustments.
| City/Region | New Apartment Price/sqm | Used Apartment Price/sqm | Average New Apartment Total Price | Gross Rental Yield |
|---|---|---|---|---|
| Tokyo (Central 23 Wards) | ¥1,100,000-¥1,500,000 | ¥800,000-¥1,000,000 | ¥110 million+ | 3-4% |
| Tokyo (Suburbs) | ¥580,000-¥800,000 | ¥400,000-¥600,000 | ¥50-70 million | 4-4.5% |
| Osaka | ¥875,000 | ¥477,000 | ¥55-57 million | 4.5% |
| Fukuoka | ¥700,000 | ¥400,000 | ¥56 million | 5% |
| Sapporo | ¥600,000 | ¥350,000 | ¥51.5 million | 5% |
| Rural Japan | N/A | ¥200,000-¥400,000 | ¥20 million | 6%+ |
What's the typical apartment price in different parts of Japan right now?
As of June 2025, apartment prices in Japan vary dramatically depending on location.
In Tokyo's central 23 wards, new apartments cost between ¥110 million to ¥150 million (US$780,000-$1,070,000) for a standard 70-80 square meter unit. Osaka apartments are more affordable at ¥55-57 million (US$390,000-$410,000), while Fukuoka offers similar pricing at around ¥56 million (US$400,000). In rural areas and smaller cities, you can find apartments for as low as ¥20 million (US$143,000).
The Tokyo residential market remains the most expensive in Japan, with central locations like Minato, Shibuya, and Chiyoda commanding premium prices. However, suburban Tokyo areas offer more reasonable options at ¥50-70 million for new apartments.
Regional variations reflect local economic conditions and population trends, with growing cities like Fukuoka showing stronger price stability than declining rural areas.
These price differences create diverse opportunities for both residents and investors depending on their budget and objectives.
How much cheaper are apartments in cities like Osaka and Fukuoka compared to Tokyo?
Osaka apartments cost approximately 50% less than comparable units in central Tokyo.
While a new apartment in Tokyo's prime areas averages ¥110 million, similar properties in Osaka city center cost ¥55-57 million. Fukuoka offers even better value with new apartments averaging ¥56 million but with newer buildings and modern amenities.
| Location | Price per sqm | Savings vs Tokyo Central |
|---|---|---|
| Tokyo Central | ¥1,100,000-¥1,500,000 | - |
| Osaka | ¥875,000 | 20-42% |
| Fukuoka | ¥700,000 | 36-53% |
| Sapporo | ¥600,000 | 45-60% |
These price differences make regional cities increasingly attractive for buyers seeking better value, especially given the improving infrastructure and quality of life in these secondary markets.
For investors, the lower entry costs in Osaka and Fukuoka also translate to higher rental yields despite slightly lower absolute rental prices.
What's the price difference between brand-new and older apartments?
New apartments in Japan typically cost 20-40% more than used ones.
In Tokyo, new apartments average ¥1,100,000-¥1,500,000 per square meter, while used apartments range from ¥800,000-¥1,000,000. The price gap is particularly significant in major cities where new developments feature modern earthquake-resistant construction and updated amenities.
| Property Age | Tokyo Central (per sqm) | Osaka (per sqm) | Fukuoka (per sqm) |
|---|---|---|---|
| Brand New | ¥1,100,000-¥1,500,000 | ¥875,000 | ¥700,000 |
| 5-10 years old | ¥900,000-¥1,200,000 | ¥600,000 | ¥500,000 |
| 10-20 years old | ¥800,000-¥1,000,000 | ¥477,000 | ¥400,000 |
| Over 20 years | ¥600,000-¥800,000 | ¥350,000 | ¥300,000 |
The depreciation curve is steepest in the first 10 years, making 5-10 year old properties attractive for value-conscious buyers who still want modern features.
Properties over 20 years old offer the best prices but may require renovation and have higher maintenance costs.
What are the actual total costs when buying an apartment in Japan?
When purchasing an apartment in Japan, expect to pay 4-7% above the listed price in various fees and taxes.
One-time costs include acquisition tax (3-4% of purchase price), registration fees (1-1.5%), real estate agent fee (3% + ¥60,000 + consumption tax), stamp duty (¥10,000-¥60,000), and mortgage arrangement fees (2-3% if using financing). These upfront costs can add ¥2-5 million to a typical apartment purchase.
Ongoing annual costs encompass fixed asset tax (1.4% of assessed value), city planning tax (0.1-0.3%), monthly maintenance fees (¥10,000-¥30,000 for a typical 2-bedroom), repair reserve fund (¥5,000-¥15,000 monthly), and parking if needed (¥20,000-¥50,000 monthly in Tokyo).
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Smart buyers factor these costs into their budget from the start to avoid surprises and ensure proper financial planning.
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What mortgage options can buyers access and what are the current rates?
Japan offers several mortgage options with historically low interest rates in 2025.
The Flat 35 government-backed program provides fixed rates for up to 35 years at 1.8-3.8% depending on loan term, with up to 90% financing available. Variable rate mortgages offer even lower initial rates at 0.5-1.5%, though they carry more risk as rates adjust with market conditions. Hybrid mortgages combine fixed rates for 5-10 years before converting to variable, providing a balanced approach.
Most lenders require a 20% down payment, though some offer 90% financing for qualified buyers. Foreign buyers typically need permanent residency or a Japanese spouse to access standard mortgage products, though banks like SMBC and Shinsei offer special programs for foreign residents with stable income.
The mortgage application process typically takes 4-6 weeks and requires extensive documentation including income verification, tax returns, and property evaluations.
Current low rates make buying more attractive than renting for long-term residents planning to stay 5+ years.
How have apartment prices changed over the past year and five years?
Japan's apartment market has shown steady growth, particularly in major urban centers.
One-year changes from 2024-2025 show Tokyo new apartments up 5-7%, Tokyo used apartments up 3-4%, Osaka new apartments down 5%, Osaka used apartments up 9%, and Fukuoka up 3-5%. The divergence between new and used apartment prices in Osaka reflects changing buyer preferences and inventory levels.
Over the five-year period from 2020-2025, Tokyo new condo prices have surged 66%, significantly outperforming the nationwide average increase of 20-40%. Regional cities show slower but steady growth, while rural areas remain flat or slightly declining.
The Tokyo residential market has significantly outperformed other regions, driven by continued urbanization, foreign investment, and limited supply in central areas.
These trends suggest a widening gap between urban and rural property values that shows no signs of reversing.
What do experts predict for apartment prices over the next 1, 5, and 10 years?
Market experts provide cautiously optimistic forecasts for Japan's apartment market.
For the next 12 months through mid-2026, Tokyo and major cities will likely see 5-6% increases for new condos and 3-4% for used apartments. The Bank of Japan's potential interest rate adjustments may slightly cool the market, but demand remains strong in urban centers.
The 5-year outlook from 2025-2030 suggests urban centers, particularly Tokyo, Osaka, and Fukuoka, will continue moderate appreciation. The widening gap between urban and rural property values will accelerate, with Tokyo's central wards potentially seeing 20-30% cumulative growth.
Long-term 10-year projections from 2025-2035 favor major cities due to ongoing urbanization and Japan's demographic shifts. Tokyo, Osaka, and Fukuoka should maintain positive growth trajectories, while rural and depopulating regions may face stagnation or decline.
Infrastructure improvements and redevelopment projects will create pockets of opportunity in select regional cities.
Which Japanese cities offer the best potential for property value growth?
Tokyo's central 23 wards remain the strongest bet for long-term appreciation.
The capital offers the highest liquidity, international demand, and major redevelopment projects, with target areas including Minato, Chiyoda, Shibuya, and Shinjuku. These districts benefit from corporate headquarters, government offices, and premium retail that ensure consistent demand.
Osaka emerges as a growing business hub with the Expo 2025 legacy providing infrastructure improvements and international visibility. The city offers a more affordable entry point than Tokyo while maintaining strong rental demand from professionals and tourists.
Fukuoka stands out as Japan's fastest-growing major city with a young population and thriving startup ecosystem. Government incentives for development and its strategic location near Asia make it increasingly attractive for both domestic and international investors.
Yokohama and Kawasaki benefit from Tokyo proximity with lower prices but similar growth trajectories, plus major infrastructure improvements planned.
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.
Where can investors find the highest rental income returns?
Rural areas offer the highest gross yields at 6%+ but come with significant risks.
While Tokyo provides lower yields of 3-4% due to high purchase prices, it offers the most stable rental income and tenant quality. Fukuoka and Sapporo represent the sweet spot with 5% yields and growing demand from young professionals and students.
| City | Gross Rental Yield | Best Property Type | Average Monthly Rent (2BR) |
|---|---|---|---|
| Rural Areas | 6%+ | Older apartments | ¥50,000-¥80,000 |
| Fukuoka | 5% | Studio/1BR units | ¥80,000-¥120,000 |
| Sapporo | 5% | Compact apartments | ¥70,000-¥100,000 |
| Osaka | 4.5% | Central locations | ¥100,000-¥150,000 |
| Tokyo | 3-4% | Premium units | ¥150,000-¥300,000 |
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For pure yield seekers, regional cities and rural areas can exceed 6%, but higher returns reflect higher vacancy risks and potential maintenance issues.
What neighborhoods are emerging as affordable investment hotspots?
Several areas offer excellent value for money in 2025.
Suburban Tokyo including Tama, Saitama, Chiba, and Kanagawa prefectures provide 30-50% savings compared to central Tokyo while maintaining excellent train connections and growing family demand. These areas benefit from remote work trends allowing residents to live further from offices.
Up-and-coming cities include Fukuoka as a tech hub with young population influx, Sapporo with winter tourism and remote work appeal, Sendai rebuilding with modern infrastructure, and Okinawa experiencing tourism-driven growth while remaining affordable.
Specific neighborhoods to watch include areas along new train lines or station renovations, districts with planned redevelopment projects, university towns with stable rental demand, and locations near new corporate headquarters.
Early investment in these emerging areas often yields the best long-term returns as infrastructure and amenities improve.
What's the smartest apartment purchase strategy for different goals in Japan?
Different investment goals require distinct approaches in Japan's diverse market.
For primary residence, suburban Tokyo or regional cities like Fukuoka offer the best quality of life value. A ¥50-70 million apartment in Tokyo's suburbs or a ¥40-60 million unit in Fukuoka provides modern amenities, good schools, and reasonable commutes. Focus on areas with strong community infrastructure and proximity to train stations.
Rental investors should target compact 1-2 bedroom apartments near major stations in Tokyo, Osaka, or Fukuoka. These units typically cost ¥30-50 million and attract stable tenants. Studios and one-bedrooms in business districts offer the best occupancy rates, especially properties within 10 minutes' walk from major train stations.
For capital gains through flipping, focus on central Tokyo's luxury segment or Osaka's redevelopment zones. Look for older buildings in prime locations facing redevelopment, or newly completed projects in up-and-coming neighborhoods.
It's something we develop in our Japan property pack.
How does Japan's apartment market compare to South Korea's?
Japan's apartment market offers more stability and openness compared to South Korea.
While Seoul apartments are more expensive than Tokyo's at ₩15-25 million/sqm (US$11,000-18,000) versus ¥1.1-1.5 million (US$7,400-10,000), Japan provides better rental yields of 3-5% compared to Korea's 2-3%. Both markets have seen significant appreciation with Tokyo up 66% and Seoul up 70-100% over five years.
| Comparison Factor | Japan (2025) | South Korea (2025) |
|---|---|---|
| Capital city price/sqm | ¥1.1-1.5 million (US$7,400-10,000) | ₩15-25 million/sqm (US$11,000-18,000) |
| Rental yields | 3-5% (higher in regions) | 2-3% (lower in Seoul) |
| Fixed mortgage rates | 1.8-3.8% (Flat 35) | 3-5% |
| Variable rates | 0.5-1.5% | 2-4% |
| Foreign ownership | No restrictions | Some restrictions on land |
| Transaction costs | 4-7% of purchase price | 1-2% of purchase price |
| Market volatility | Low, steady growth | Higher, policy-sensitive |
Japan's lower mortgage rates and lack of foreign ownership restrictions make it more accessible for international buyers. While transaction costs are higher in Japan, the market's lower volatility and predictability appeal to long-term investors.
The Japanese market's maturity and transparency provide additional security for foreign investors.
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 apartment market in 2025 presents diverse opportunities across different cities and property types, with Tokyo leading in appreciation potential while regional cities offer better yields. Understanding these regional variations and cost structures is essential for making informed investment decisions.
Whether seeking a primary residence or investment property, buyers should carefully consider their goals, budget, and risk tolerance while factoring in all associated costs beyond the purchase price. The market's continued urbanization trend suggests that well-located properties in major cities will likely maintain their value advantage over rural areas in the coming decade.
Sources
- Global Property Guide
- Tokyo Portfolio
- Resources Real Estate Japan
- E-Housing Japan
- Bamboo Routes
- INA Group
- Rise Corp Tokyo
- Housing Japan
- Expatica
- Statista
- Japan Property
- HAY Insights
- Property Access
- Aberdeen Investments
- Wamazing
-Japan Real Estate Market Overview
-Tokyo Real Estate Market Analysis
-Osaka Real Estate Market Trends
-Kyoto Real Estate Market Guide
-Fukuoka Real Estate Market Insights
-Nagoya Real Estate Market Report
-Sapporo Real Estate Market Overview
-Hiroshima Real Estate Market Update