Property Types in Japan
Before buying in Japan, it’s vital to understand what kind of property you’re actually purchasing. The market offers everything 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 comes with its own advantages, drawbacks, and unique considerations for living, investing, or building something new.
Houses (一戸建て / ikkodate)
Standalone houses are found across Japan, from quiet suburbs to remote 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 secondhand homes are often more affordable but may need seismic upgrades or renovations. Because both land and buildings depreciate, older homes often list close to land value alone.
For instance, a 30-year-old house in Setagaya might look dated, but with smart renovation could provide excellent long-term value—or you might choose to tear down and rebuild. This flexibility is a major appeal of ikkodate, though the responsibility for maintenance is yours alone.
Condominiums (マンション / manshon)
Manshon are reinforced-concrete units in mid- or high-rise buildings. They’re particularly popular in Tokyo, Osaka, and Fukuoka, where buyers value convenience, security, and amenities such as auto-lock entry, delivery lockers, and concierge services. International buyers often favor them for the hassle-free lifestyle and reliable resale value, especially near major train stations.
The downside comes with older buildings. Units may look affordable, but if the building is 30+ years old and hasn’t had major upgrades, plumbing, elevators, or roofing repairs can become expensive. A key indicator is the repair reserve fund (shūzenhi). If it’s underfunded, owners may face sudden special assessments. Always review the long-term repair plan (chōki shūzen keikaku) and building association minutes to understand the future costs. A beautiful unit in a poorly managed building can quickly turn into a financial burden.
Apartments (アパート / apāto)
Apāto generally 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 in their entirety. 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 sometimes called “house hacking.”
These buildings are cheaper to buy and build on a per-unit basis, but they require active management. Owners are responsible for tenanting, repairs, and legal compliance—though management companies can be hired. Lifespan is shorter than concrete manshon, and they tend to attract lower-income tenants, which can limit resale value. Still, for those seeking income with a lower barrier to entry, apāto can be a flexible option.
Land Only (土地 / tochi)
Purchasing 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 can look cheap, costs for lifelines—water, sewage, electricity, gas—can add several million yen. Installing septic tanks may cost 1–3 million yen, drilling a well 1–2 million yen, and running new utility lines several hundred thousand yen or more.
A vacant lot may seem like a bargain at 10 million yen, but if utilities aren’t in place, the true cost of making the land livable can rise quickly. Prospective buyers should always request estimates for utility connections before purchase. Timelines are also longer—construction can take months to a year, and you may need temporary housing while you wait.
Vacant Houses (空き家 / akiya)
There are millions of akiya across Japan, especially in depopulating rural areas. They attract adventurous buyers—DIY renovators, artists, or entrepreneurs seeking a countryside inn, café, or creative space. Many feature traditional architecture such as exposed beams, clay walls, and tiled roofs. Municipalities and NPOs now run “akiya banks” (空き家バンク / akiya banku), and subsidies are sometimes available for renovation.
Still, challenges are real. Many akiya require complete rewiring, plumbing, seismic reinforcement, or insulation. Ownership can be unclear if heirs are missing or untraceable. Other red flags include water damage, structural instability, or lack of utilities. With careful due diligence, an akiya can be a rewarding project—but not for the faint of heart.
Leasehold Properties (借地権 / shakuchiken)
In central Tokyo areas such as Minato or Shinjuku, it’s common to find leasehold land. Buyers own only the building, while leasing the land—usually from temples or trusts—for 30–50 years. Renewal is possible but costly, and terms vary. These properties can appear more affordable upfront and grant access to prime areas, but financing is limited, resale is harder, and renovation rights are restricted by the lease terms.
Unless you have a specific short-term purpose and professional legal support, shakuchiken arrangements often bring more complications than benefits.
Commercial & Mixed-Use
Japan offers many opportunities for commercial or mixed-use purchases—shops, small offices, or live/work properties with residence above. They can provide income potential and are sometimes used by foreign buyers applying for business visas. However, they face higher property taxes, stricter fire and safety codes, and zoning restrictions. Converting a commercial space into accommodation (e.g., guesthouse or minpaku) may require reclassification, which can be a lengthy bureaucratic process. Still, for the right buyer, these properties can combine lifestyle and business.
Finding the Right Fit
Choosing between an ikkodate, manshon, apāto, tochi, or akiya isn’t only about price or structure—it’s about the kind of life you want to build in Japan. A manshon might offer city convenience, an apāto steady rental income, or an akiya the chance to transform a forgotten house into something new. Each option carries trade-offs, but also the potential to shape your future lifestyle, investment strategy, or creative project.
The right choice depends on your goals, risk tolerance, and imagination. With a clear match, buying property in Japan becomes more than a transaction—it becomes the start of a story you get to write yourself.
And once you’ve found the property type that speaks to you, the next step is even more exciting: discovering the neighborhoods and communities where that story can truly take root.
