Houses for Sale in Japan: Complete Guide for Foreigners

Can Foreigners Buy Houses in Japan?

Yes — foreigners can legally buy houses in Japan, and Japan is one of the most open countries in the world when it comes to property ownership by non-citizens.

Unlike many countries that impose restrictions based on nationality, residency, or visa type, Japan has no legal limitations on foreign individuals owning real estate. This includes both the building itself and the land it sits on. As a result, foreigners can purchase houses in Japan under almost the same conditions as Japanese citizens.

That said, while the law is straightforward, the actual buying experience can vary depending on language support, financing options, and long-term plans.

Is Property Ownership Allowed for Non-Japanese?

Yes.

Foreigners are allowed to own the following:

• Detached houses (single-family homes)
• Apartments and condominiums
• Land (freehold ownership)

Currently, there are no ownership caps, no special permits, and no requirement to have permanent residency. You can buy property even if you do not live in Japan full-time.

Once purchased, the property is fully registered in your name, and ownership rights are protected under Japanese law in the same way as for Japanese nationals.

Visa and Nationality Requirements

There is no visa requirement to buy property in Japan.

You can legally purchase a house even if you:

• Are on a short-term visa
• Live outside Japan
• Do not have residency status

However, visa status does matter in practical situations, especially when it comes to financing and long-term use:

Mortgages: Most Japanese banks require long-term residency or permanent residency for home loans. Many foreign buyers therefore purchase property with cash.

Living in the house: Owning a property does not grant you the right to live in Japan. You still need a valid visa to reside long-term.

Language and contracts: Property documents are usually in Japanese exclusively, so working with bilingual agents or legal professionals is strongly recommended.

In short, buying property is easy from a legal standpoint, but living in Japan and financing a purchase involve separate considerations.

Types of Houses for Sale in Japan

When searching for houses for sale in Japan, foreign buyers will mainly encounter detached houses rather than large suburban developments or multi-family homes found sometimes in the United States.

Understanding the differences between house types — especially new vs used properties — is essential, as Japan’s housing market works very differently from many Western countries.

Detached Family Homes

The most common type of house for sale in Japan is the detached, single-family home. These houses are typically standalone buildings built on individually owned land.

Key characteristics include:

• Smaller lot sizes, especially in urban areas
• Narrow streets and compact layouts in residential neighborhoods
• Minimal shared facilities compared to condominiums

In major cities like Tokyo or Osaka, detached houses are often located in quiet residential zones, sometimes just minutes away from train stations. In suburban or more rural areas, houses tend to be further from public transit, but are larger and significantly more affordable.

For many foreign buyers, detached houses are attractive because they can offer:

• Full ownership of both land and building
• Greater privacy than apartments
• Fewer management fees or shared rules

New Houses vs Used Houses

One of the biggest surprises for foreign buyers is that used houses in Japan are much cheaper than new ones.

New houses are usually:

• Built by large developers
• Designed to meet the latest earthquake and building standards
• More expensive, with higher initial depreciation

Used houses, on the other hand:

• Lose value quickly after construction
• Can be purchased at a fraction of the original price
• Often require renovation or inspection

Unlike in many countries, buildings in Japan are often treated as depreciating assets, while the land retains most of its value. As a result, buyers focused on affordability frequently choose used houses, especially outside major metropolitan areas.

For long-term residents, lifestyle buyers, or those planning to renovate, used houses can offer excellent value, while new houses appeal to buyers prioritizing modern design and low maintenance.

House Prices in Japan

House prices in Japan are oftenlower than foreigners expect, especially compared to major cities in the United States, Europe, or Australia.

While prices vary widely depending on location, age, and proximity to train stations, Japan remains one of the few developed countries where buying a house can still be relatively affordable — even in urban areas.

Average Prices in Major Cities

Below is a price range for standalone houses in popular areas. These figures are general estimates and can vary significantly by neighborhood and property condition.

Tokyo (23 wards):

¥40,000,000 – ¥80,000,000

Osaka:

¥25,000,000 – ¥50,000,000

Yokohama:

¥30,000,000 – ¥60,000,000

Small cities:

¥15,000,000 – ¥30,000,000

In suburban or rural areas, prices can be even lower, with some houses available for under ¥10,000,000, especially older properties.

Compared to housing markets like New York, Los Angeles, or London, these prices are often significantly more accessible, particularly for cash buyers.

Why Houses in Japan Are Affordable

Several structural factors keep house prices in Japan lower than in many other developed countries:

Depreciation of buildings:

As mentioned above, houses in Japan are considered depreciating assets. After 20–30 years, many buildings are valued close to zero, regardless of condition.

Stable population trends:

Japan’s population is not growing, which limits long-term upward pressure on housing prices.

Strong rental culture:

Many people prefer renting, reducing speculative demand for homeownership.

Consistent new construction:

Strict but predictable building regulations allow new housing supply to enter the market steadily.

Because of these factors, property transactions in Japan are mostly for the value of the land, not the building itself — a concept that feels very different to buyers from the U.S. or Europe.

Where to Buy a House in Japan

Choosing where to buy a house in Japan depends heavily on lifestyle, budget, and length of one’s stay in Japan. While major cities attract the most attention from foreign buyers, suburban and countryside areas often provide better value and more space.

Tokyo and Major Urban Areas

Tokyo and other large cities such as Osaka and Yokohama are the most popular choices for foreign buyers who plan to live in Japan long-term or work in urban centers.

Key advantages include:

• Excellent public transportation
• Highly convenient for daily life
• Strong rental demand if the property is leased out

However, urban houses typically come with:

• Higher prices
• Smaller living spaces
• Limited availability near major stations

Houses in central Tokyo are often compact and designed to maximize land use, making them very different from suburban homes in Western countries. Because of this, it is highly recommended to visit prospective homes in person when hunting to make sure your expectations align with what the house actually offers and feels like.

Suburban and Rural Options

For buyers prioritizing space, affordability, or a quieter lifestyle, suburban and rural areas are often a better fit.

Popular suburban options include:

• Areas within 30–60 minutes of Tokyo by train
• Residential towns in Kanagawa, Chiba, and Saitama

Smaller cities and rural areas offer:

• Significantly lower prices
• Larger homes and land plots
• Access to nature and slower-paced living

These areas are attractive for remote workers, retirees, or buyers seeking a second home in Japan. Daily conveniences may be harder to find, but the trade-off is cost efficiency and living comfort.

How to Buy a House in Japan

The process of buying a house in Japan is generally clear and well-structured, even for foreign buyers. While the paperwork is mostly in Japanese, the overall steps are straightforward when working with a reliable real estate agent.

Finding a Property

Most foreign buyers start their search through:

• Online property listing websites
• Real estate agents familiar with foreign clients
• English-friendly agencies in major cities

Properties are usually listed with detailed information, including price, size, age, and distance from the nearest train or bus stations.

At this stage, it is important to:

• Confirm ownership rights and zoning rules
• Check building age and condition
• Inquire about renovation history or inspection reports

As mentioned above, viewing properties in person is strongly recommended, especially for older homes.

Contract, Payment, and Registration

Once you decide on a property, the buying process typically follows these steps:

• Purchase application – You submit an offer to the seller
• Explanation of important matters – A legally required disclosure session
• Sales contract signing – Both parties sign the agreement
• Final payment and handover – Remaining balance is paid
• Property registration – Ownership is officially recorded

The entire process usually takes one to two months from offer to completion.

Most transactions are handled through escrow-style procedures, making Japan a relatively safe country for real estate purchases. While legal and registration fees apply, there are few unexpected steps if everything is explained clearly upfront.

Costs, Taxes, and Fees to Know

When buying a house in Japan, the purchase price is not the only cost to consider. While Japan’s real estate transactions are relatively transparent, buyers should budget for additional taxes and fees that typically add up to about 5–10% of the property price.

Common costs include:

Real estate agent fee

Usually up to 3% of the purchase price, plus tax.

Registration and legal fees

Required to officially transfer ownership of the property and land.

Real estate acquisition tax

A one-time tax after the purchase is completed.

Stamp duty

A small tax applied to the sales contract.

In addition to these initial costs, homeowners should also be aware of annual property-related taxes, such as fixed asset tax and city planning tax.

Compared to many Western countries, Japan has:

No property purchase restrictions for foreigners

No special foreign buyer taxes

Relatively predictable transaction costs

Because of this, buyers can usually estimate total expenses in advance without major surprises. Working with an experienced agent or legal professional can further reduce risk and ensure all costs are clearly explained before signing.

Buying vs Renting in Japan

For many foreigners, the decision between buying and renting in Japan depends less on price and more on lifestyle, visa stability, and long-term plans. While buying a house can make sense in certain situations, renting remains the more common choice — especially for newcomers.

When to Buy

Buying a house in Japan may be a good option if you:

• Plan to live in Japan long-term
• Have stable residency status
• Are purchasing with cash or long-term financing
• Want full control over your living space

Homeownership can offer stability and privacy, particularly for families or buyers committed to staying in one location for many years. In rural areas, buying can sometimes be cheaper than long-term renting.

However, buyers should also consider resale value, maintenance costs, and flexibility before committing.

Why Many Foreigners Choose to Rent First

Despite affordable housing prices, many foreigners choose to rent — at least initially — for several practical reasons:

• Flexibility: Renting allows easy relocation as work or visa situations change
• Lower upfront costs: No large down payment or transaction fees
• Less responsibility: Maintenance and repairs are often handled by the landlord

Renting also gives newcomers time to get used to neighborhoods, commuting patterns, and daily life in Japan before making a long-term commitment.

For these reasons, many foreign residents decide to rent first, then consider buying later once they feel confident about where and how they want to live.

Living in Japan Without Buying Property

Buying a house is not the only way to enjoy living in Japan. For many foreigners, especially those new to the country, flexible rental options offer a more practical and stress-free way to start life in Japan.

Furnished Housing as an Alternative

Furnished housing has become an increasingly popular choice among foreign residents. These properties typically come with:

• Furniture and appliances included
• Shorter and more flexible lease terms
• Lower upfront costs compared to buying

This option is ideal for people who:

• Are unsure how long they will stay in Japan
• Want to avoid large initial investments
• Prefer an easy move-in experience

Furnished rentals allow residents to focus on work, study, or daily life without worrying about setting up utilities, buying furniture, or handling long-term maintenance.

Why XROSS HOUSE Is a Popular Choice for Foreigners

XROSS HOUSE is a well-known furnished housing provider designed specifically for international residents in Japan.

Key reasons foreigners choose XROSS HOUSE include:

• Fully furnished rooms with transparent pricing
• No key money or large deposits
• Flexible contract terms suitable for short- and mid-term stays
• Locations across Tokyo and major metropolitan areas

For many newcomers, XROSS HOUSE offers a smooth transition into life in Japan — making it possible to live comfortably without committing to property ownership.

For those considering buying a house in the future, starting with furnished housing provides valuable time to explore neighborhoods, understand the market, and make informed long-term decisions.

Summary: Buying Houses in Japan

Tokyo and the rest of Japan remain open to foreigners considering buying real estate, whether it is a home, apartment, or land. Unlike other countries, there are no special laws or prohibitive rules for foreigners buying real estate here, which means the process is straightforward. However, as purchasing a house is a major life decision, plenty of research and preparation are needed to make a smooth, successful real estate transaction in Japan.