Yes, foreigners, including Australians, can buy property in Japan. In fact, foreign buyers are given the same rights as Japanese citizens.
Unlike the Australian government, which has restrictions on overseas property investment, Japan has no restrictions on foreigners buying property.
So even if you're in the country on a tourist visa, you're still eligible to buy a house.
Of course, there are a few potential drawbacks you should be aware of before buying a house in Japan.
These include likely price depreciation, renovation costs and the fact that owning property doesn't automatically give you the right to live in Japan.
Here's a step-by-step guide for buying a house in Japan as an Australia:
The first step is to work out how much you can afford to spend. You'll need to not only consider the purchase price but also fees (more on these later), the cost of any repairs or renovations, and currency conversion costs.
If you need to borrow money as a foreign national, it can be difficult to qualify for a mortgage from a Japanese bank. Eligibility requirements vary, but you may need to be a permanent resident or have been employed in Japan for an extended period.
Next, narrow down to the exact location where you want to buy. While you can do plenty of research online, nothing compares to visiting different areas yourself and getting a feel for what they have to offer.
You'll need to consider property prices in any areas you like and check whether it has all the local infrastructure and amenities you need. These can include transport links, shops, schools, and dining and entertainment options.
Now it's time to find a property that's right for you. You can easily browse properties for sale online on websites like Suumo, homes.co.jp and athome.co.jp.
But here's where getting in touch with a licensed real estate broker, preferably a bilingual one, can help.
They can help you find properties that meet your requirements, and walk you through each step of the buying process.
If possible, try and visit properties in person to get a better sense of the market, and when you find the right one you can make an offer.
Your real estate agent can help you negotiate the terms and conditions of your purchase with the seller. As always, it's essential that you have the property professionally inspected to make sure it's structurally sound and find out whether there are any costly repairs needed.
The transaction will also need to be registered to record the transfer of ownership. The simplest way to complete this step is to hire a judicial scrivener to take care of this for you.
Once you've finalised the purchase contract, you'll need to transfer money from Australia to Japan to buy the property.
As this is likely to be a large transaction, getting a good exchange rate on AUD/JPY could save you hundreds or even thousands of dollars.
Banks generally offer poor exchange rates on international transfers, so you can save money by using a specialist money transfer company.
These providers offer better rates and will sometimes waive fees on large transfers, so compare money transfer services to find the best value.
We review money transfer providers for different features to assign them a score out of 10. The higher the score, the more competitive the product.
The property market in Japan is a little different to the Australian market.
Unlike in Australia, where buying and owning property as an investment is common, in Japan houses have a reputation for depreciating in value quite quickly.
Homes are regularly demolished and rebuilt too, and rebuilding is often a much more common approach than renovating.
So if you're thinking of buying a property in Japan, it's important to adjust your mindset a little bit.
In terms of prices, where you buy has a big impact on how much you'd pay. In popular metropolitan areas like Tokyo and Osaka, prices are higher.
According to Global Property Guide data, existing condominiums in Tokyo would set you back JPY 722,700 (approx. AUD $6,520) per square metre, new condos cost an average of JPY 1,201,000 (approx. AUD $10,834) per square metre and existing detached houses cost an average of JPY 40.07 million (approx. AUD $361,479). AUD amounts are converted at the RBA rate of 110.85 JPY per AUD on 9 September 2026.1
In Osaka, existing condos cost an average of JPY 391,380 per square metre, new condos cost approximately KPY 810,000 per square metre and an existing detached house would cost around JPY 23.23 million.
But it's a different story in rural areas, where there's another big factor having an impact: Japan's shrinking (and ageing) population.
Japan's population stands at around 123 million at the moment, but that number is expected to drop to around 88 million by 2065.2
Younger generations are leaving rural areas in their droves and heading for major cities, a shift that has led to millions of abandoned rural homes known as akiya.
Japan's most recent Housing and Land Survey revealed that there were 9 million akiya across the country, and these abandoned homes can often be purchased for cheap.3
Some have made headlines for selling for as little as $500, so there are bargains to be found if you know where to look.
Take the following factors into account if you're thinking about buying property in Japan from Australia:
Aside from the purchase price or down payment, there are several fees you'll need to pay upfront when buying Japanese property. These include:
These fees can vary based on where the property is located and how much it costs. Once you own the property, you'll need to pay annual fixed asset tax (1.4% of property's value) and city planning tax (up to 0.3%).
There may also be additional costs if you buy a leasehold property rather than a freehold property. And if you take out a loan to fund the purchase, you'll need to factor interest and loan fees into your calculations as well.
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Hey Tim,
Quesiton, with in regard to purchasing property in Japan. If I was to have someone rent out the property I purchase (property management) what would the best way for transfering and reciving funds between each other? Is it possible for me as a foreigner to open a local Japanese bank account? or would I just manage and funds through my current bank and do the transfers internationally?
Regards.
Hi Nathaniel, That’s a complex situation and you’ll need specialist advice – both on the mechanics of renting the property and the tax implications in both Japan and Australia. Opening a bank account in Japan can be difficult for non-citizens, so you may find yourself needing to work with an agency to handle that.