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Is a Cheap Akiya Really a Good Deal?
There are several advantages to choosing a pre-owned home. Unlike modern new builds, many older houses offer more spacious layouts, were constructed by skilled carpenters, or use solid wood and higher-quality materials—often with more unique design touches. In urban areas, location may also be a significant advantage.
Of course, not all pre-owned homes have these features, but many older properties do exhibit characteristics that are rarely found in newer homes.
Still, the most common reason for choosing a pre-owned home is price. It's true that the purchase price is lower than that of a new build. However, when you factor in the overall lifespan, safety, and functionality of the home, these properties are not always “a great deal.” Unexpected problems and repair costs that exceed the buyer’s initial expectations are not uncommon.
As Japan’s low-priced used homes have attracted increasing attention, and overseas buyers have shown growing interest in akiya (vacant houses), there has also been a rise in cases where buyers experience post-purchase trouble—or end up regretting their decision due to higher-than-expected costs.
In particular, homes priced under 10 million yen—and especially under 5 million yen—often come with far greater repair costs than initially assumed, or serious concerns about safety and livability. There is no shortage of cases where buyers regret their purchase.
This page explores how property prices are determined in Japan’s pre-owned housing market, as well as the market structure and common risks associated with low-cost homes. The focus is on understanding the relationship between price, quality, and safety—key factors to consider when evaluating a cheap pre-owned property.
Related:
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Divided into categories, this Q&A guides you from the first property search through to becoming an owner.
How Are Pre-Owned Home Prices Determined in Japan?
In Japan, the price of a pre-owned home is generally determined by combining the land value and the building value. Land prices are calculated based on three official indices that are published annually: the "Official Land Price" by the Ministry of Land, Infrastructure, Transport and Tourism, the "Standard Land Price" by each prefecture, and the "Roadside Land Value" by the National Tax Agency. These serve as benchmarks, along with local market conditions, zoning and building regulations, and any legal restrictions on the property.
Building value is based on factors such as construction type (e.g., wood frame, light steel), age, and condition. The total property price is derived by adding this building value to the land price. The final asking price is then adjusted according to any unique issues related to the building and the level of market demand.
For older homes, however, it’s common for the building portion to have almost no assessed value. Japan uses a concept called “legal useful life,” which defines the expected duration a building can be used under normal maintenance. For wooden residential structures, this period is set at 22 years.
This is not an indicator of how long a house can actually be used. But in real estate appraisals, houses over 22 years old tend to lose most of their assessed building value. By the time a house reaches 30 years of age, unless it has been well maintained and is still habitable, it often carries almost no value. Even homes that are under 30 years old may be valued at zero if their condition is poor. In some cases, the sale price reflects a deduction for demolition costs.
Even so, in areas with high demand—especially near city centers—land values may still be high, which pushes up the overall property price. It is not unusual to see 50-year-old homes sold at high prices because the land itself holds significant value.
Conversely, in areas with low demand or where the land has legal restrictions under the Building Standards Act or the City Planning Act, the asking price may be low. If the property also has serious structural damage, has been vacant for a long time, or is expected to require major repairs, it will typically be priced significantly lower than other pre-owned homes in the same area.
In short, extremely cheap homes tend to reflect not only low land value but also underlying legal issues or serious structural problems.
Understanding Property Price and Repair Costs
There is always a reason why a property is cheap.
If the asset carries risks related to land value, safety, legal compliance, or if substantial repair costs are expected, then its selling price will be set low accordingly. These risks and problems often reveal themselves later—either in the form of unexpected repairs or trouble after the purchase.
Even if such issues aren’t immediately visible, how seriously you acknowledge and prepare for the “many hidden risks” makes a significant difference. Each pre-owned home is different, so there is no single rule that guarantees safety—but there are some basic indicators to keep in mind.
One of those indicators is the price.
For example, homes priced under 5 million yen are generally located in areas with extremely low land value—regions with limited demand and high asset risk—and the building itself is rarely valued at all.
A home that is 30 years old has typically reached the point where structural and utility systems (such as plumbing and electrical) require inspection, repair, or replacement. If maintenance has not been done, the risk of failure increases, and replacement will eventually become necessary.
(For more on structural safety and earthquake resistance based on building age, see here.)
Homes in this price range often show clear signs of deterioration. You generally cannot expect any maintenance to have been done on the foundation, structure, or utility systems. In many cases, even simple updates like plumbing fixtures, interior finishes, or flooring overlays haven’t been done.
A full renovation is usually required.
Even if you replace the kitchen or bathroom fixtures, the underlying utility systems—such as plumbing or electrical—may still require attention soon afterward. Replacing wallpaper may reveal mold, or repairing floorboards may uncover damage in the foundation. It is not uncommon for repair costs to snowball this way. There are many cases where neglected structural or infrastructure systems—such as piping or wiring—worsen over time and result in large, unexpected expenses.
In the 6 to 10 million yen range, some homes may appear more livable—with clean wallpaper or usable plumbing fixtures. At first glance, they may seem to require only minor repairs.
However, buyers often face hidden problems post-purchase—such as termite damage, outdated seismic structures, deteriorated piping, or roofing and exterior walls reaching the end of their life span. Surface-level updates cannot extend the life of a home’s structural frame or resolve underlying problems with utility systems or the foundation.
Comparing With Well-Maintained Homes
What most people want to know is: How much repair work is needed just to make the home livable? This usually refers to general renovations—such as updates to plumbing fixtures, wallpaper, and flooring.
In addition to the general risk estimation by price range (as mentioned earlier), there’s a simple method to help estimate rough repair costs for visible interior work: subtract the estimated land value from the property price to get an approximate value of the building. Then, compare that to the building value of a similar but well-maintained home.
For example, if the land price is ¥30,000 per square meter and the lot size is 150 square meters, the land value would be about ¥4.5 million. If the property price is ¥8 million, then the building portion is ¥3.5 million.
Note: If the property price is lower than the land value (“below land value”), this may indicate major issues—such as legal restrictions or serious problems with the neighborhood. Such cases require extra caution.
Now let’s compare: suppose that in the same area, a well-maintained home with similar floor area and less than 20 years old has a building value estimated at ¥10 million. The difference—¥6.5 million—represents a rough estimate of the minimum repair costs needed for the cheaper property.
Of course, this is just a rough method. You’ll still need an actual repair estimate to proceed with any work. But compared to guessing blindly, this gives you a far clearer idea of the scale of repairs.
This method is not well-suited for areas where land prices are sharply rising, like central Tokyo. But in suburban or rural areas—where cheap akiya are more common and demand is stable or declining—it can be a useful tool for initial assessment.
To estimate early-stage repair costs, you’ll need to consider building age, maintenance history, and current condition. Since the building price already reflects various factors, it can be a helpful reference in evaluating potential risks.
Learning From Past Cases
You may have come across online reviews or personal accounts from people who regretted buying a cheap property. These are not rare or extreme examples—they reflect situations that happen quite often.
Here are a few real cases (noted with the building age at the time of sale):
42 years old, property price: ¥2.2 million
About a 15-minute walk from a suburban train station, with a 165 m² (50 tsubo) lot. Two stories, 5K layout. The house had many leftover belongings, with creaky stairs and floors. The kitchen floor noticeably sagged when stepped on. Built under the old seismic standard. Major interior renovations, including plumbing fixture replacement and wallpapering, were assumed necessary.
The buyer spent about ¥7 million on essential repairs and tried renting it out for ¥70,000/month, but couldn’t find tenants due to declining demand in the area. Key parts like piping, roofing, and exterior walls were untouched, and resale would not recoup the investment—including repairs.
37 years old, property price: ¥3.5 million
Within 15 minutes of a suburban train station, about 150 m² lot (45 tsubo), two stories, 4DK layout. The home had been inherited and vacant for a long time, with no leftover belongings. Rodent droppings were found throughout, and ceiling panels showed stains and damage from animal waste. The balcony was partly rotted and unusable.
All plumbing fixtures needed replacement, and damage to the piping systems was suspected due to age. A bird had nested in a second-floor shutter box, making it unusable, and the floor was damaged by droppings.
While the home had a Japanese-style layout with old-school design elements—such as solid wood pillars, decorative features, and a series of tatami rooms—it required large-scale repairs, including full replacement of infrastructure systems and all interior finishes.
A surface-level full renovation excluding the balcony, roof, walls, and piping systems was estimated at a minimum of ¥8 million. The buyer knowingly accepted these risks and purchased it for the charm of its classic features. It is now used as a second home, with future plans for demolition and rebuilding.
37 years old, property price: ¥9.9 million
Lot size approx. 100 m² (30 tsubo). Located about an hour from Tokyo, 15-minute walk to the station. Good surrounding environment and favorable location, but the house had severe deterioration—the kitchen floor had collapsed.
Initially listed as a property requiring major repairs, the seller later carried out a full renovation and layout change through a major contractor, spending ¥11 million. However, key elements such as the roof, foundation, and piping systems were left untouched.
The home was re-listed at ¥18.8 million.
Although the average land value in the area was ¥320,000 per tsubo, the land portion of the re-listed price was below this average. Due to the imbalance between land size, building age, and final price, the property struggled to attract buyers.
How to Avoid Regret
The cheaper a property is, the more likely it is that unexpected problems or repair needs will arise after purchase.
In many cases, the home's condition turns out to be worse than expected—such as severe mold that is difficult to remove, or high water bills that turn out to be caused by hidden leaks requiring full pipe replacement.
Why do these “unexpected” issues occur so frequently?
One major reason is that real estate transactions in Japan often lack thorough building inspections and adequate disclosure of property conditions.
(For more on Japan’s structural market challenges, read this.)
In Japan, pre-purchase home inspections are not legally required and are not commonly conducted. As a result, it is difficult for buyers to understand the risks or condition of a home before signing a contract.
In addition, real estate brokers are not construction experts, and their knowledge or experience can vary widely. Low-priced properties tend to yield minimal profit for brokers—yet often involve more work due to their location or condition. For business reasons, brokers may not be able to allocate extra resources to anything beyond the legally required tasks.
Sometimes the seller has no clear understanding of the home's condition, especially if it was inherited or has been vacant for a long period. In many cases, these homes are listed without anyone truly knowing their actual state.
All of this reflects a deeper issue: Japan’s secondhand housing market has historically remained underdeveloped. The systems, regulations, and cultural attitudes surrounding used homes have not kept pace with the recent surge in demand.
So what can we do in this environment?
The most important thing is to assume that invisible risks exist—and never take them lightly.
Maintaining a healthy home requires regular upkeep and timely repairs.
With low-cost pre-owned homes—especially older properties that have been vacant—the inability to assess risk is itself a major risk. The best thing buyers can do is gather as much information as possible and take time to understand the kinds of issues that may arise.
How well a buyer understands the potential risks and future repair costs will directly affect how well they can prepare.
As noted at the beginning, pre-owned homes have many appealing aspects.
I hope this article helps you make more informed decisions—and avoid unnecessary regret.