Japan is one of the few places where foreigners buy with full ownership rights and no residency requirement, yet it is also a market with a shrinking population and a very weak yen. City-centre prices average about $8,216 per m² (2023) and gross yield is 2.4% (2024). These notes explain how to read the Japan property market data before you look at property for sale in Japan.
Two Japans: Tokyo and everywhere else
The dataset gives $8,216 per m² in city centres and $4,923 per m² outside (2023). Tokyo, Osaka, Kyoto and resort areas such as Niseko price well above that, while rural houses (akiya) can sell for very little. Average monthly net salary is about $2,329 (2023), and the price-to-income ratio of 10.0 (2024) is moderate relative to the headline prices.
Compare formats on apartments for sale in Japan and houses for sale in Japan; land is separate at land for sale in Japan. Remember that Japanese buildings depreciate quickly for tax and market purposes, while land holds value.
| Indicator | Value | Year |
|---|---|---|
| Price per m², city centre | $8,216 | 2023 |
| Price per m², outside centre | $4,923 | 2023 |
| Price-to-income ratio | 10.0 | 2024 |
| Gross rental yield, city centre | 2.4% | 2024 |
| Price-to-rent ratio | 41.0 | 2024 |
| Mortgage rate, 20 years | 1.8% | 2023 |
Yields, rates and the yen
A 2.4% gross yield (2024) and a price-to-rent ratio of 41 show that Japan is priced for stability. A one-bedroom in the centre rents for about $775 a month (2023). The 20-year mortgage rate was only 1.8% (2023), so for Japanese residents financing is cheap, though rates have started rising as the Bank of Japan moved away from ultra-low policy.
For dollar and euro buyers, the weak yen has cut entry prices in hard-currency terms, which is the main reason foreign demand has grown. The same exposure cuts the other way if the yen strengthens. Non-resident borrowing is limited; see the Japan financing guide.
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Demographics and economy
GDP is about $4.4 trillion and grew 1.2% (2025). Inflation was 3.2% (2025), unemployment is a very low 2.5% (2025), and the population of 123 million is falling by 0.5% a year (2025). Government debt is 214.5% of GDP (2024), the highest of any country in this batch, though mostly held domestically. Corporate tax is 23.2% (2026), VAT 10% (2026), and the corruption index is a clean 73 (2024).
Population decline is the central long-term issue. Demand is concentrating in Tokyo and a few other cities while rural areas empty out, which is why akiya cost so little and so often cannot be resold.
In Japan the land is what you are buying and the building is what you are replacing; in rural areas, the population is the risk, in Tokyo, the yen.
Practical points for foreigners
- Foreigners can own freehold property without residency.
- Buying land requires a registered title (tōki) and, in practice, an agent who works in English.
- Earthquake-resistance standards changed in 1981 and 2000; check which one applies.
- Annual fixed-asset tax and city-planning tax apply, and rental income of non-residents is taxed.
- Opening a bank account can be difficult as a non-resident.
Our Japan buying guide covers the process.
Outlook
Expect resilience in Tokyo and tourist-driven areas, continued weakness in the countryside, and sensitivity to the yen and interest rates. A value buyer can find low-cost properties through cheap properties in Japan, but should price in renovation and resale risk. Test numbers with the valuation tool.
Last updated 8 October 2026