View this property on Akiya Japan
Overview
Most foreign buyers default to Tokyo or Osaka when they think about Japanese real estate. Both are solid markets β but the asking prices reflect that, and yields are compressed. The more interesting opportunities sit in Japan's regional cities and rural prefectures, where entry costs are significantly lower and rental demand can be surprisingly strong.
This guide covers five regions worth looking at, based on what we're actually seeing listed across our platform. Prices and listing counts are current as of early 2026.
Top Regions for Foreign Investors
1. Fukuoka Prefecture (Kyushu)
Fukuoka is Kyushu's largest city and arguably Japan's most underrated metro. It has a growing startup scene, excellent food, direct flights across Asia, and a cost of living well below Tokyo. The city has been on a steady growth trajectory for over a decade.
- Average asking price: ~Β₯22.3M (~$149,000 USD) for properties listed for sale
- Listings on Akiya Japan: Over 10,000 properties currently for sale
- Rental yields: Typically 5β7% in central areas, higher than Tokyo equivalents
- Key areas: Tenjin (CBD), Hakata (station area), Momochi (waterfront)
Fukuoka works well for buy-to-let investors who want stable, long-term rental income without the Tokyo premium.
2. Hokkaido (Sapporo & Ski Country)
Hokkaido is a two-speed market. Sapporo offers affordable city apartments with solid local rental demand. Then there's the ski resort corridor β Niseko, Furano, Rusutsu β where tourism drives short-term rental income, particularly from Australian, Southeast Asian, and Chinese visitors.
- Average asking price: ~Β₯14.6M (~$97,500 USD) β the lowest of the five regions covered here
- Listings on Akiya Japan: Over 10,500 properties currently for sale
- Key areas: Sapporo Chuo Ward, Niseko, Otaru, Furano
- Opportunity: Minpaku (short-term rental) licences available in ski areas; Sapporo for steady long-term lets
Entry costs are low, but winters are harsh and some rural properties require significant heating and insulation investment.
3. Nagano Prefecture
Nagano sits at the intersection of mountain lifestyle and Tokyo accessibility β the Shinkansen gets you to central Tokyo in about 90 minutes. The prefecture is home to Hakuba, Karuizawa, and Nozawa Onsen, all of which have established short-term rental markets driven by skiing in winter and hiking in summer.
- Average asking price: ~Β₯16.5M (~$110,000 USD)
- Listings on Akiya Japan: Nearly 2,800 properties currently for sale
- Key areas: Hakuba (ski), Karuizawa (luxury weekender market), Nozawa Onsen
- Opportunity: Mountain chalets and renovated properties for vacation rental; year-round tourism is growing
Karuizawa commands higher prices given its status as Tokyo's preferred weekend retreat. Hakuba and Nozawa offer better value but are more seasonal.
4. Hiroshima Prefecture
Hiroshima is a stable regional economy anchored by manufacturing (Mazda is headquartered here) and steady domestic tourism to the Peace Memorial and Miyajima island. It doesn't have the hype of Fukuoka or the resort appeal of Hokkaido, which is exactly why properties here are priced below what comparable cities command.
- Average asking price: ~Β₯19.2M (~$128,000 USD)
- Listings on Akiya Japan: Over 4,300 properties currently for sale
- Key areas: Naka Ward (city centre), near Hiroshima Station, riverside neighbourhoods
- Opportunity: Long-term rentals to local workforce; renovation upside in suburban areas
A quiet, overlooked market β good for investors who want reliable tenants rather than tourist-dependent income.
5. Okinawa Prefecture
Okinawa is Japan's subtropical outlier β culturally distinct, tourism-heavy, and increasingly popular with both domestic and international visitors. The U.S. military presence also creates consistent rental demand around base areas. That said, it's the most expensive region on this list, and the premium reflects the lifestyle appeal.
- Average asking price: ~Β₯38.5M (~$256,000 USD) β significantly higher than the mainland regions listed above
- Listings on Akiya Japan: Over 21,800 properties currently for sale
- Key areas: Naha (capital), Chatan (American Village), Onna Village (resort coast)
- Opportunity: Vacation rentals, military base rentals, lifestyle/retirement properties
Higher entry cost, but strong and diverse rental demand. Worth considering if your budget allows it.
What to Know Before You Buy
Financing
The reality for most foreign buyers: you're paying cash. Japanese banks rarely lend to non-residents, and the mortgage process for foreign nationals β even residents β can be slow and paperwork-heavy. Some international lenders offer Japan-focused property loans, but terms vary widely. Permanent residents have considerably better access to domestic financing.
Taxes & Ongoing Costs
- Property tax: ~1.4% of assessed value annually (assessed value is typically well below market value)
- Acquisition tax: 3β4% at purchase
- Rental income tax: Japanese income tax applies if the property generates income in Japan
- Capital gains: Tax on sale profits β rates depend on how long you've held the property (short-term holdings taxed at higher rates)
- Tax treaties: Check whether your country has a double taxation agreement with Japan
Renovation Realities
Many of the cheapest properties in Japan need significant work. Roofing, plumbing, earthquake reinforcement, and insulation are common requirements β and costs can exceed the purchase price. Budget conservatively: Β₯3β10M for a basic renovation of an older house, more for structural work. Get a building inspection before committing.
Short-Term Rental (Minpaku) Regulations
If you're planning to run vacation rentals, check the local rules carefully. Japan's national minpaku law caps unlicensed short-term rentals at 180 days per year, but many municipalities impose stricter limits or require specific licences. Ski resort areas and tourist towns tend to be more permissive; some urban wards have effectively banned it.
Getting Professional Help
Buying property in Japan as a foreigner is straightforward on paper β there are no restrictions on foreign ownership. The complexity is in the process: Japanese-language contracts, local agent customs, building inspections, and navigating municipal requirements. Working with a bilingual agent who understands both the local market and international buyer expectations makes a significant difference.
Our partner Teritoru is a licensed real estate agency based in Japan that specialises in supporting international buyers through the full purchase process β from property search and due diligence through to closing.
Sources
- Property data and listing counts from Akiya Japan (February 2026)
- Ministry of Land, Infrastructure, Transport and Tourism β Land Price Surveys
- Japan Tourism Agency β Regional Visitor Statistics
- National Tax Agency β Property Tax and Capital Gains Guidelines