Introduction

Selling a home in Japan requires a solid understanding of the real estate market, which differs significantly from Western markets in terms of pricing trends, buyer demographics, and legal considerations. Whether you’re selling a modern home in a city or an akiya (vacant house) in the countryside, this guide will help you navigate Japan’s real estate landscape effectively.

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1. The Unique Characteristics of Japan’s Real Estate Market

Unlike other countries where older homes retain value, Japan’s real estate market largely favors newer homes over older properties. Understanding these key characteristics can help sellers set realistic expectations.

Depreciation Over Time

• Japanese homes typically lose value over time rather than appreciating.
• Homes older than 20-30 years are often considered to have little or no market value, even if they are structurally sound.
• In contrast, land retains or increases in value, particularly in desirable urban locations.

Demand for New Construction

• Many Japanese buyers prefer newly built homes due to cultural preferences for modern and earthquake-resistant designs.
• Developers frequently tear down older houses and rebuild, making land value a critical factor in pricing.

Akiya (Vacant House) Crisis

• Japan has over 8 million vacant homes due to population decline and urban migration.
• Selling an akiya requires a different strategy than selling a home in a city, often targeting investors, foreign buyers, or local governments offering subsidies.

2. Key Factors That Influence Property Prices in Japan

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1. Location

• Properties in Tokyo, Osaka, and Kyoto hold strong value due to high demand.
• Rural homes or akiya often have lower market value due to depopulation.

2. Age & Condition of the Property

• Homes less than 10 years old can still retain significant value.
• Older homes (20+ years) may require renovation or be sold primarily for land value.

3. Accessibility & Infrastructure

• Proximity to train stations, bus routes, and major roads increases a home’s appeal.
• Homes near schools, shopping centers, and hospitals also tend to sell faster.

4. Market Trends & Economic Conditions

• Government policies, interest rates, and regional development projects can influence demand.
• Foreign investment has increased in areas like Hokkaido and Okinawa, boosting property values.

3. Who Are the Buyers in Japan?

Understanding your target buyer will help you tailor your selling strategy.

1. Domestic Buyers

• Typically prefer newer homes and are cautious about buying older properties.
• Often seek properties close to work, schools, and transportation hubs.

2. Foreign Investors & Expats

• Foreign buyers are often interested in akiya, vacation homes, and investment properties.
• Some prefer countryside homes for tourism ventures or short-term rental businesses.

3. Developers & Renovation Enthusiasts

• May purchase older homes to demolish and rebuild.
• Investors sometimes buy akiya to renovate and resell.

4. Preparing Your Home for Sale Based on Market Conditions

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If You’re Selling in a City or Urban Area

✔ Ensure the home is clean, well-maintained, and staged for presentation.
✔ Highlight nearby amenities and transportation options.
✔ Work with a real estate agent to price your property competitively.

If You’re Selling an Akiya or Rural Property

✔ Consider offering incentives, such as reduced pricing or renovation subsidies.
✔ Target foreign buyers, investors, or local programs looking to repurpose old homes.
✔ List your property on akiya banks, Old Houses Japan, and international real estate websites.

5. How to Navigate the Selling Process

1. Get a Property Valuation

• Work with a real estate agent or appraiser to determine land and property value.

2. Understand Legal Requirements

• Obtain necessary documents such as the Property Registration Certificate (登記事項証明書).
• Check zoning laws and property tax obligations before selling.

3. Choose the Right Selling Platform

• List your property through Old Houses Japan if targeting foreign buyers.
• Use Japanese real estate portals like SUUMO, AtHome, and Rakuten Realty.
• Consider working with a local real estate agent for better exposure.

4. Negotiate Offers & Finalize the Sale

• Be prepared for price negotiations, especially with akiya properties.
• Work with a real estate lawyer if selling directly to a foreign buyer.
• Complete the sale by transferring ownership through the Legal Affairs Bureau (法務局).

Final Thoughts

The Japanese real estate market has unique challenges and opportunities, but understanding its structure will help you successfully navigate the selling process. Whether you are selling a traditional home in Tokyo or an akiya in the countryside, Old Houses Japan can help you find the right buyers and guide you every step of the way.

Ready to sell your home? Contact Old Houses Japan today to get started!