In 2024, the average price of second-hand single-family homes in the Greater Tokyo Area in Japan amounted to around 42.6 million Japanese yen. The resale price of houses increased by 3.7 percent year on year.

Key information about House Prices Growth

• Japan house prices grew 4.3% YoY in Nov 2024, following an increase of 2.0% YoY in the previous month.
• YoY growth data is updated monthly, available from Apr 2009 to Nov 2024, with an average growth rate of 1.9%.
• House price data reached an all-time high of 10.2% in Apr 2022 and a record low of -9.4% in Apr 2009.

In 2024, the average price of second-hand single-family homes in the Greater Osaka Area in Japan amounted to around 23.6 million Japanese yen. The resale price of houses increased by 1.9 percent compared to the previous year.

In 2023, the average size per dwelling in Japan was 90.86 square meters. When broken down by prefecture, Toyama stood out as the prefecture with the largest average floor area per housing unit, while Tokyo had the smallest average floor area in the same year. Real estate in Japan The real estate industry is an important pillar of the Japanese economy and ranked as the third-largest industry in Japan in terms of value added in 2022. Despite this, the number of unoccupied dwellings in Japan has been steadily increasing for over thirty years. Many unoccupied homes are empty and abandoned. This trend can be attributed to two primary factors: the aging of the population and the challenges faced by empty house owners in managing and utilizing properties, as most of these homes are either managed by older individuals or family inheritance. Housing in Tokyo The monthly residential property price index in Tokyo Prefecture has experienced a significant upward trend in the past years. Tokyo holds the largest population in Japan, with approximately 14 million inhabitants, making it the world’s largest urban agglomeration. The city’s appeal lies in its many renowned universities and corporate headquarters, which draws migrants from other prefectures, particularly young individuals. However, Japan is currently experiencing an investment boom in real estate, fueled by overseas investment. This has resulted in central Tokyo apartments becoming less affordable for many people.

In 2023, the existing home sales index in Japan stood at 116.8 index points, reaching a decade high. The index for used home sales measures the development of the second-hand housing market based on the number of ownership transfers due to the sale and purchase of buildings. It includes data for detached houses and condominiums. Second-hand housing market in Japan Japan’s second-hand home market only accounts for a small share of the overall housing market. Despite the country’s massive housing stock, a large quantity of new homes is built every year as Japanese consumers prefer new homes over used ones. This is probably rooted in the housing policies of the post-war period, which were aimed at the rapid supply of new housing units at the cost of quality. As a result, many older homes are poor quality, and an average home fully depreciates within 30 years. These circumstances have created uncertainty about used homes and are reflected by the scrap and build approach of completely destroying and rebuilding used homes instead of reusing and renovating them. Revitalizing the existing home market In the past years, however, the government has shifted its focus to revitalizing the used housing market and utilizing the massive existing housing stock that comprises around 62 million units. By implementing a reliable home inspection system, subsidizing renovations, and offering appropriate pricing models, it is trying to change people’s perception of used homes. Driven by rising prices for new homes, demand for second-hand homes, especially condominiums, has recently increased in the metropolises of Tokyo and Osaka.

Japan JP: Standardised Price-Income Ratio: sa data was reported at 89.185 Ratio in 2023. This records an increase from the previous number of 87.364 Ratio for 2022. Japan JP: Standardised Price-Income Ratio: sa data is updated yearly, averaging 113.334 Ratio from Dec 1960 (Median) to 2023, with 64 observations. The data reached an all-time high of 163.015 Ratio in 1973 and a record low of 73.387 Ratio in 2009. Japan JP: Standardised Price-Income Ratio: sa data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s Japan – Table JP.OECD.AHPI: House Price Index: Seasonally Adjusted: OECD Member: Annual. Nominal house prices divided by nominal disposable income per head. Net household disposable income is used. The population data come from the OECD national accounts database. The long-term average is calculated over the whole period available when the indicator begins after 1980 or after 1980 if the indicator is longer. This value is used as a reference value. The ratio is calculated by dividing the indicator source on this long-term average, and indexed to a reference value equal to 100.

As of December 2023, the JREI Home Price Index for existing condominiums in Kanagawa Prefecture, Japan, stood at around 104.9 index points. Compared to the previous year, the index increased by roughly 2.5 percent.Besides, the JREI publishes home price indices for Tokyo, Chiba, and Saitama Prefectures, as well as a composite index for the Tokyo Metropolitan Area as a whole.

In September 2024, the monthly existing home sales index in Japan stood at 124.9 index points, down by one percent compared to the previous month.The existing home sales index measures the development of the second-hand housing market based on the number of ownership transfers due to the sale and purchase of buildings. It includes data for detached houses and condominiums.

In 2024, around 19.3 thousand second-hand single-family homes were sold in the Greater Tokyo Area in Japan. The number of used detached houses sold rose by 7.5 percent year on year. At the same time, the average price of second-hand homes sold increased by 3.7 percent.

Japan Housing Loan: Floating Interest Rate: City Banks data was reported at 2.475 % pa in Oct 2018. This stayed constant from the previous number of 2.475 % pa for Sep 2018. Japan Housing Loan: Floating Interest Rate: City Banks data is updated monthly, averaging 2.475 % pa from Jun 1987 (Median) to Oct 2018, with 377 observations. The data reached an all-time high of 8.500 % pa in Jan 1991 and a record low of 2.375 % pa in Sep 2006. Japan Housing Loan: Floating Interest Rate: City Banks data remains active status in CEIC and is reported by Bank of Japan. The data is categorized under Global Database’s Japan – Table JP.M014: Mortgage Rate.

In December 2023, the Japan Real Estate Institute (JREI) Home Price Index for existing condominiums in Saitama Prefecture fell by approximately 1.9 percent compared to the same month a year ago, standing at around 91.3 index points.Besides, the JREI publishes home price indices for Tokyo, Kanagawa, and Chiba Prefectures, as well as a composite index for the Tokyo Metropolitan Area as a whole.

In March 2025, the median interest rate on variable rate housing loans set by city banks in Japan stood at about 2.63 percent per annum. In October 2024, the rate had increased for the first time in over a decade. The short-term prime lending rate serves as a benchmark for adjustable rate home loan rates.

In 2024, the average land price in Japan amounted to around 217.1 thousand Japanese yen per square meter. The average land price is based on land price surveys conducted by the Ministry of Land, Infrastructure, Transport, and Tourism and prefectural governments in January and July each year. Japan’s geography The Japanese archipelago consists of the five main islands of Honshu, Hokkaido, Kyushu, Shikoku, and Okinawa in addition to thousands of smaller islands. Together, they cover a surface area of around 378 thousand square kilometers. Three-quarters of the country’s land area is covered by mountains. Forestland and farmland constitute about 78 percent of its landmass, while developed land accounts for five percent. The population of 124 million is concentrated in major cities like Tokyo, which is home to over nine million inhabitants. Urban-rural divide and land prices Owing to an overconcentration of economic activity in Tokyo and other major cities like Osaka and Nagoya, more than half of the population is located in three metropolitan areas. Tokyo and its surrounding prefectures that comprise the Tokyo metropolitan area attract many people from other parts of the country each year, often young individuals seeking jobs or starting university. In contrast, rural regions are confronted with depopulation and economic stagnation. Japan’s urban-rural divide is also reflected in land prices. Tokyo has by far the most expensive land prices. In terms of land price growth, the cities of Sapporo, Sendai, Hiroshima, and Fukuoka have outpaced the Greater Tokyo Area in the past decade.

As of December 2023, the JREI Home Price Index for existing condominiums in Saitama Prefecture, Japan, stood at around 91.3 index points. Compared to the previous year, the index decreased by 1.86 percent.Besides, the JREI publishes home price indices for Tokyo, Kanagawa, and Chiba Prefectures, as well as a composite index for the Tokyo Metropolitan Area as a whole.

In 2024, the average land price in Chiba Prefecture was 137.9 thousand Japanese yen per square meter, up from approximately 128.2 thousand yen in 2023. Chiba Prefecture is part of the Tokyo Metropolitan Area, which is home to around 30 percent of the population in Japan.

Portugal, Canada, and the United States were the countries with the highest house price to income ratio in 2023. In all three countries, the index exceeded 130 index points, while the average for all OECD countries stood at 117.5 index points. The index measures the development of housing affordability and is calculated by dividing nominal house price by nominal disposable income per head, with 2015 set as a base year when the index amounted to 100. An index value of 120, for example, would mean that house price growth has outpaced income growth by 20 percent since 2015. How have house prices worldwide changed since the COVID-19 pandemic? House prices started to rise gradually after the global financial crisis (2007–2008), but this trend accelerated with the pandemic. The countries with advanced economies, which usually have mature housing markets, experienced stronger growth than countries with emerging economies. Real house price growth (accounting for inflation) peaked in 2022 and has since lost some of the gain. Although, many countries experienced a decline in house prices, the global house price index shows that property prices in 2023 were still substantially higher than before COVID-19. Renting vs. buying In the past, house prices have grown faster than rents. However, the home affordability has been declining notably, with a direct impact on rental prices. As people struggle to buy a property of their own, they often turn to rental accommodation. This has resulted in a growing demand for rental apartments and soaring rental prices.

The share of vacancies among the total number of dwelling units in Japan stood at 13.8 percent in 2023. This represented an increase from 2.5 percent in 1963. High vacancy rates in rural areas In 2023, around nine million dwelling units in Japan were unoccupied. Vacancy rates were especially high in rural parts of the country, while more populated urban areas such as Tokyo recorded vacancy rates below the national average. Amid the aging and shrinking of the population in Japan, vacant and abandoned houses pose an increasing challenge to local governments across the country, as the stock of dwellings is already exceeding the number of households. Vacant home databases As one measure to address the problem, local governments and private companies have set up databases to find buyers for vacant homes (“akiya”) and land (“akichi”). However, although vacant and abandoned land and property was a common issue recognized in everyday life, the level of awareness of so-called “akiya banks” was rather low, as revealed in a survey.

The average price per new condominium unit in the Greater Tokyo Area amounted to 78.2 million Japanese yen in 2024. The average price per unit decreased by 3.5 percent compared to the previous year.

The average price per tsubo of condominium units in the 23 wards of Tokyo in Japan amounted to around 5.7 million Japanese yen in 2023. This constituted an increase from 4.26 million yen in the previous year.

In 2023, there were close to 65.1 thousand new condominium units in Japan. This constituted a decrease from around 73 thousand units in the previous year. In the past decade, the supply of new condominium units was the highest in 2014 at 83.2 thousand. The history of condominiums in Japan During the period of rapid economic growth in the 1960s, public housing apartment buildings made of concrete, called Danchi, gained increasing popularity in Japan. This also meant a shift away from multi-generational households to nuclear family households. As a part of this development, construction companies started to build the first condominiums, followed by the first condominium boom in the mid-1960s. Today, the number of residential condominiums in Japan is still growing. The condominium market in Japan Greater Tokyo and Greater Osaka together accounted for almost two-thirds of the supply of new condominiums in Japan. Condominium prices have been on an upward trend recently. The average price per square meter of new apartment units was the highest in the Greater Tokyo Area. Amid rising property prices across Japan, pre-owned condominiums also saw a price increase.