Property Types in Japan

Before buying property in Japan, it’s important to know the main property types in Japan. Options range from compact city manshon (マンション / condominiums) to rural akiya (空き家 / vacant houses), as well as tochi (土地 / land-only plots) and income-generating buildings. Each type has its own benefits, drawbacks, and things to consider when deciding how you want to live, invest, or build.

Houses (一戸建て / Ikkodate)

Ikkodate are standalone houses found across Japan, from suburbs to rural villages. Buyers gain privacy, space, and the freedom to renovate or rebuild, since they own both the land and the structure. New builds from developers offer convenience, while older homes are often cheaper but may need seismic upgrades or renovations.

Because land and buildings lose value over time, older homes often sell close to land value. For example, a 30-year-old house in Setagaya may look outdated. But with smart renovation, it can offer excellent long-term value—or you might choose to rebuild. This flexibility is a major appeal of ikkodate, though maintenance remains the owner’s responsibility.

Condominiums (マンション / Manshon)

Manshon are reinforced-concrete units in mid- or high-rise buildings. They are popular in big cities such as Tokyo, Osaka, and Fukuoka, where buyers value convenience, security, and amenities like auto-lock entry, delivery lockers, and concierge services. International buyers often choose them for the hassle-free lifestyle and stronger resale value near major train stations.

Older manshon may look affordable at first. But in buildings more than 30 years old without major upgrades, owners often face costly plumbing, elevator, or roof repairs. Check the repair reserve fund (shūzenhi). If it is too low, owners usually get hit with sudden special assessments. Always review the long-term repair plan (chōki shūzen keikaku) and meeting notes to understand future costs.

Apartments (アパート / Apāto)

Apāto usually refers to low-rise wooden or light-steel rental buildings, two to three stories tall. Unlike manshon, which are sold by the unit, apāto buildings are usually sold as a whole. Investors like them for steady rental yield, especially in university towns or smaller cities. Some buyers also live in one unit while renting out the others, a strategy often called “house hacking.”

Apāto are cheaper to buy and build per unit, but they require active management. Owners must handle tenants, repairs, and compliance, although management companies can be hired. Lifespans are shorter than concrete manshon, and resale value is limited. Still, they can be a flexible choice for those seeking income with a lower entry cost.

Land Only (土地 / Tochi)

Buying tochi appeals to those who want to design their own home. But not all land is buildable. Zoning, road access, and lifeline availability (utilities) must be checked. While land may seem cheap, installing water, sewage, electricity, or gas can cost several million yen.

A vacant lot priced at 10 million yen may look like a bargain. But without utilities, the cost of making the land livable climbs fast. Always ask for estimates before you buy. Building also takes time. Construction often runs several months to a year, and buyers may need temporary housing while they wait.

Vacant Houses (空き家 / Akiya)

Japan has millions of akiya, especially in rural towns with shrinking populations. They attract adventurous buyers—DIY renovators, artists, or entrepreneurs who want to create a countryside inn, café, or studio. Many feature traditional elements such as exposed beams, clay walls, and tiled roofs. Some municipalities and NPOs run akiya banks (空き家バンク / akiya banku) and even offer subsidies for renovation.

The risks are also clear. Many akiya need full rewiring, new plumbing, seismic reinforcement, or insulation. When heirs are missing or untraceable, ownership often becomes unclear. Other problems include water damage, weak structures, and missing utilities. With careful checks, an akiya can become a rewarding project—but not for every buyer.

Leasehold Properties (借地権 / Shakuchiken)

In central Tokyo areas such as Minato or Shinjuku, leasehold land is common. Buyers own only the building, while leasing the land—often from temples or trusts—for 30 to 50 years. Renewal is possible but costly, and terms vary.

These properties can look more affordable upfront and provide access to prime areas. But financing is harder to secure, resale is limited, and renovation rights are restricted by lease terms. Unless you have a short-term plan and legal support, leaseholds often create more complications than benefits.

Commercial & Mixed-Use

Japan also offers commercial and mixed-use properties. These include shops, small offices, or live/work buildings with a residence above. They can generate income and sometimes help foreign buyers apply for business visas. However, they face higher property taxes, stricter fire and safety codes, and zoning rules. Converting a commercial space into housing or a guesthouse (minpaku) may require reclassification, which can take time and paperwork.

Finding the Right Fit

Choosing between an ikkodate, manshon, apāto, tochi, or akiya isn’t only about cost or structure. It’s about the lifestyle you want to build in Japan. A manshon offers city convenience. An apāto can create steady rental income. An akiya may give you the chance to transform a forgotten house into something new. Each option comes with trade-offs but also opportunities for lifestyle, investment, or creativity.

With the right match, buying property in Japan becomes more than a transaction. It becomes the start of a story you get to write yourself. Once you choose your ideal property type, the next step is even more exciting—finding the neighborhood or community where that story can truly take root.