How much does a house cost in Japan? Explaining the price of a detached house and the key points of purchasing real estate!
Among those who have lived in Japan for many years, or those who admire Japan, there may be many who think, ``I want to buy a house in Japan and live there.''
In this article, we will explain in detail the prices of houses (single-family houses) in Japan and important points for foreigners when purchasing real estate such as houses in Japan.
Please use this as a reference if you are considering buying a house in Japan in the future.
If you want to buy a detached house in Japan cheaply, please check out the following articles.
Can foreigners buy a house in Japan?
It is of course possible for foreigners to buy a house in Japan.
Just like Japanese people, you can buy houses and land and take ownership.
In countries other than Japan, there are often regulations for foreigners regarding real estate acquisition depending on whether they have permanent residence, Japanese nationality, type of visa, etc.
However, there are no such regulations in Japan, and people are allowed to own real estate in the same way as Japanese people.
However, please note that purchasing real estate does not guarantee you a visa or permanent residence.
Average purchase price of a house (single-family house)
From here, I will tell you about the price of the house you are interested in.
We divided housing into custom-built homes with land and pre-built homes, and compiled the average prices by region.
Source: 2020 summary table: Japan Housing Finance Agency (formerly Japan Housing Loan Corporation) https://www.jhf.go.jp/about/research/2020.html
The average price of a house (single-family house) in the Tokyo metropolitan area (Tokyo, Kanagawa, Saitama, Chiba) is as follows.
|Type of housing||price|
|Custom-built house with land||23,102,000 yen|
|ready-built house||39.225 million yen|
The average price of a house (single-family house) in the Kinki area (Osaka prefecture, Kyoto prefecture, Hyogo prefecture, Nara prefecture, Shiga prefecture, Wakayama prefecture) is as follows.
|Type of housing||price|
|Custom-built house with land||16.553 million yen|
|ready-built house||34.41 million yen|
The average price of a house (single-family house) in the Tokai area (Aichi prefecture, Gifu prefecture, Shizuoka prefecture, Mie prefecture) is as follows.
|Type of housing||price|
|Custom-built house with land||13 million yen|
|ready-built house||30,131,000 yen|
The average price of a house (single-family house) in other areas (prefectures other than the Tokyo metropolitan area, Kinki area, and Tokai area) is as follows.
|Type of housing||price|
|Custom-built house with land||9.329 million yen|
|ready-built house||28.418 million yen|
If you are interested in the rent market in Japan, please check out the following articles.
Key points for foreigners when purchasing real estate in Japan
There are several points that foreigners should be aware of when purchasing real estate such as a house in Japan.
Taxes are paid in the same way as Japanese people.
In Japan, foreigners can own real estate just like Japanese people. There is no expiration date for ownership.
On the other hand, taxes related to real estate are also paid in the same way as Japanese people. Taxes related to the acquisition of real estate in Japan include the following:
- Registration license tax
- Real estate acquisition tax
- Fixed asset tax
- city planning tax
- income tax etc.
Let's move forward with real estate acquisition, keeping in mind the necessary taxes.
There are very few transactions between individuals.
In Japan, intermediaries such as ``real estate companies'' intervene between home owners and buyers. Homeowners and buyers rarely interact directly to buy or sell a home.
Therefore, the buyer will interact with the real estate agent to purchase the home. When buying a home in Japan, choose a real estate company that supports foreigners and foreign languages. We also recommend using an interpreter service to assist you with your purchase. Please keep in mind that there will be a service fee when using these services.
You should also be aware that using a real estate company itself will incur a fee called a "brokerage fee" to be paid to the real estate company.
Gather information on the internet
As shown in this article, there is a lot of information available on the Internet regarding foreigners' acquisition of real estate in Japan.
As I introduced in this article, there are many websites that provide detailed information on the properties you want, the region, and the market price by year of construction.
You can proceed with your home purchase more efficiently by first gathering some information on the Internet and then contacting the real estate company that manages the property you are interested in. Sho.
By gathering information and keeping it in mind, you can prevent your property from being sold at an exorbitant price.
Points to note when foreigners take out a home loan in Japan
Purchasing a home is a big purchase. There are very few people who can buy it in bulk with cash.
This is where a home loan comes in handy. A home loan is a loan that can be used to purchase a home.
Let's take as an example the conditions of ``Flat 35,'' which is a ``full-term fixed-rate mortgage'' offered by more than 300 financial institutions nationwide in partnership with Japan Housing Finance Agency.
If you are a foreign national and want to take out a home loan with Japan's Flat 35, you must meet the following conditions.
- have a permanent residence permit
- be a special permanent resident
If you do not have a permanent residence permit, there are also home loans that you can apply for with a spouse who is a Japanese citizen or has a permanent residence permit as a joint guarantor.
In addition, you must meet the following conditions just like Japanese nationals.
- Must be under 70 years old at the time of application
- For all loans, the ratio of the annual total repayment amount to annual income must be 30% or less if the annual income is less than 4 million yen, and 35% or less if the annual income is 4 million yen or more.
- The use of borrowed money as funds for the construction or purchase of a new home or for the purchase of a used home for the applicant or his or her relatives to live in.
- The loan period must be 15 years or more but less than 35 years (or 80 years old - age at the time of application), etc.
Reference: [Flat 35] Terms and conditions: Long-term fixed rate home loan [Flat 35] https://www.flat35.com/loan/flat35/conditions.html
In this way, even if you are a foreign national, you can use a Japanese home loan, but even if you are Japanese, there are various conditions for using a home loan.
Be sure to read the instructions carefully before using it.
In this article, we introduced the prices of Japanese houses and important points for foreigners when purchasing real estate.
I will summarize the contents so far.
- Foreigners can buy housing (houses/single-family houses) in Japan!
- The average price of a detached house is 23,102,000 yen for a custom-built house with land in the Tokyo metropolitan area.
- There are some things to keep in mind when purchasing, such as ``taxes are paid in the same way as Japanese people'' and ``purchasing is done through a real estate company.''
In order to live a happy life in a place of your choice, sometimes you need to spend a lot of money.
I hope that this article will help you find a good home.