From ruins to opportunity: Why foreigners are buying Japan’s abandoned houses

Friends Take Kurosawa and Joey Stockermans turned to Japan vacant homes after finding property ownership increasingly out of reach in the U.S. and Canada.

The pair, who met while studying in Tokyo, purchased their first vacant home, referred locally as “akiya,” in the hot spring town of Beppu for US$40,000, according to The Wall Street Journal.

Attempting renovations themselves, they removed walls they later realized they should not have touched, eventually spending another $40,000 on professional repairs.

“All my friends in Tokyo are like, why the heck are you buying that piece of crap?” said Kurosawa.

Despite that setback, they have acquired six properties and, in 2023, co-founded AkiyaMart, a platform that connects foreign buyers with real estate opportunities in Japan.

They say the platform has grown from around 8,000 users to more than 60,000 over the past year, assisting more than 150 clients, including Ooi and Paluso-Serrano.

There is a growing wave of foreign buyers acquiring Japan’s akiya. With more than nine million such properties nationwide, many remain unattractive to local buyers, who tend to favor newer homes in central locations. Some municipalities have even attempted to give them away.

For overseas buyers willing to take on renovation projects, these homes present an opportunity to secure a long-term foothold in Japan. With the yen remaining weak, many of these properties are relatively affordable.

When Melanie Ooi and Cristian Paluso-Serrano received the keys to their new home in the port town of Uno, Japan, they were struck by its grandeur.

The property stood prominently along the main road, featuring traditional wooden architecture and curved roof tiles. According to the seller’s agent, it was believed to have been a tea school built in the 1950s, giving it the appearance of a hilltop castle.

Inside, however, conditions told a different story. The garden was overgrown, the kitchen carried a musty odor, and termites were later found beneath the mats, issues not uncommon for a home left vacant for seven years and purchased after a virtual tour conducted via FaceTime.

“The process is not for the fainthearted,” said Ooi, 47.

The condition of akiya varies widely, from century-old rural properties to modest suburban homes. Some are structurally compromised, while others have been maintained despite long-term vacancy.

As Japan’s population continues to age, a growing number of homes once occupied by elderly residents are being left vacant. As of early this year, roughly one in every seven homes in Japan is unoccupied, according to Seoul Economic Daily.

An abandonned house for sale in Osaka City, Japan. Photos courtesy of AkiyaMart

In response, Japanese municipalities are giving away these homes for free. The rationale is simple: rather than let the properties deteriorate, find new owners who will at least maintain them.

But some conditions are applied such as: “reside for at least five years,” “bear renovation costs yourself,” and “actively participate in community activities.”

These conditions seem to be of no trouble for some foreigners living in high-cost housing markets, such as San Francisco and London, who are turning their attention to Japanese akiya.

In many cases, buyers also inherit the previous owner’s belongings. For Tony Gallardo and his partner, David Carroll, purchasing a $7,000 property remotely from Australia proved straightforward, but clearing out the former owner’s possessions was emotionally challenging.

Family photos remained on the walls, and notes were still pinned to a calendar. Due to Japan’s strict waste disposal regulations, they had to hire a licensed company to remove the items.

Heirs often leave inherited homes standing because demolishing them results in higher taxes. As a result, many structures fall into disrepair, attracting pests and becoming neighborhood eyesores.

However, purchasing property in Japan does not grant residency. Foreign owners are generally limited to the duration of a tourist visa.

While the business manager visa was once a common pathway to residency, it became more difficult to obtain last year after authorities raised the minimum capital requirement.

Cultural differences can also pose challenges. Haruka Oide, a consultant for buyers, noted that Japanese sellers may take offense at negotiation attempts.

Sellers may also be hesitant to transact with foreign buyers. Deborah and Jason Brawn were required to submit a declaration of intent before being allowed to view a 150-year-old house that had been vacant for 12 years.

The property, a former sake brewery, had tilted pillars and rotting floorboards, requiring extensive renovations to become livable.

They were eventually approved to purchase it on the condition that they reside there for at least six months each year, a commitment they had already planned to meet.

“We’ve got a full life in Australia and a full life over there,” Deborah said. “It’s a big commitment to us.”