Japan certainly does not suffer from an insufficient supply of vacant real estate. On the contrary. The country faces the opposite problem, an oversupply of empty homes. Government statistics indicate that in 2023 there were over nine million empty houses, known as “akiyas”.
As a rule, these are houses abandoned and unused for decades, their condition corresponds to this. What is remarkable about them, however, is their price. Most of them can be purchased for less than 10 thousand dollars, i.e. from a quarter of a million crowns. He pointed it out server CNBC.
What is the origin of this phenomenon? Japan is known as an over-aged country. The death rate is significantly higher than the birth rate. “We have been looking at the problem called akiya for decades, we see its roots already in the post-war economic boom, which led to a sharp increase in housing construction,” Tetsuya Kaneko from the Japanese branch of the consulting company Savills explains to CNBC.
Are they haunted?
The migration of young people who move to big cities for work also plays a role, while rural settlements remain populated mainly by the aging generation. “Akiyas are considered a burden by the locals, so heirs are often reluctant to use or sell them,” Kaneko says, adding that some even associate these houses, especially those over 30 years old, with superstitions and believe that they are haunted and that living in them can bring bad luck.
In short, the Japanese view these properties as an item that brings more problems than benefits. “And why are these properties so cheap? As a rule, due to assumptions that the cost of renovation will exceed the value of the property,” explained the founder of the Japanese real estate site blog Cheap Houses Japan.
Czechs have discovered that they can buy real estate in Southern Europe for the same money as in the Giant Mountains, says the head of the real estate company
Reality
The interest of Czechs in luxury real estate abroad has been increasing recently. People are not only interested in typically Czech holiday destinations such as Croatia or Spain, but are also increasingly investing in real estate in Thailand or Dubai. This was stated by the executive director of the real estate agency Luxent Jiří Kučera.
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Owners still find houses. As both gentlemen confirm, demand from abroad has been growing significantly recently. Swede Anton Wormann fell in love with Japan during his work trip and is now the owner of seven abandoned properties. He was tempted by the prices.
So far, he has completed the renovation of three of his properties, and another four conversions are underway. So far, he has invested 110,000 US dollars in the purchase and renovation, i.e. roughly 2.6 million crowns. But the short-term rent will bring him around 11,000 dollars every month, which translates to about 260,000 crowns.
According to Wormann, are his properties a profitable investment? Yes and no. The houses bring him great income, but it wouldn’t happen without getting to know the Japanese culture and people.
“Without understanding the local culture and how Japan works, I would be throwing money out the window,” Wormann said. And local real estate experts are joining his side, akiyas can be a great investment, but only for a certain group of people: especially hobbyists, do-it-yourselfers or those looking for a country retreat. “Those looking for quick, high returns could be disappointed,” Kaneko concluded.
Having your own apartment by the sea in Bohemia is more and more appealing. Under what conditions can a mortgage be arranged?
Money
There are obviously more and more employees with very good incomes in the Czech Republic. Even so much so that they can afford to buy real estate abroad on a larger scale than entrepreneurs. Some of them finance it completely out of their own money, some take out a mortgage loan for it. At the same time, they can also take it directly from banks in the Czech Republic. But not everyone knows about it. Read under what conditions you can get such a mortgage for an apartment or house by the sea.
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Czechs started buying tickets for the winter holidays. Asia reigns
News from companies
Czechs started buying tickets for November and December, according to ticket sellers, they will fly abroad more than last year from September to December. Due to the autumn holidays, ticket sellers recorded a quarter more bookings than last year for the last week of October, while the number of bookings is around ten percent higher in the week at the turn of November and December. For most ticket sellers, exoticism prevails, especially the countries of Southeast Asia.
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Special Real Estate Club
Realitní Club is a multi-platform project of the newstream.cz server dedicated to real estate, aimed at the B2B and B2C segment. It has three basic parts – web, print and event with a strong focus on social networks. The Realitní Club’s special page was the first to launch. The special is divided into four categories that deal with key areas of the real estate market in a “deep dive” manner.
- Brownfields: the vision and future of undeveloped areas, especially in big cities;
- Commercial real estate: offices, coworking;
- New construction: development, rental housing, cooperative housing, mortgages;
- Reality and politics: how municipalities and the highest levels of central politics participate in construction.
They will be included conversations with developers, politicians, architects and designers.
Topics related to real estate:
Ah, Japan! The land of the rising sun, where the cherry blossoms flutter gently in the breeze, and where you can snap up a charming little family home—if your family happens to be a haunted doll collection. Seriously, folks! Over nine million empty houses, known as "akiyas," just sitting around like that awkward relative who overstays their welcome during the holidays. It’s practically an episode of “Hoarders: Japanese edition!”
Now, let’s talk about the price—less than $10,000! I mean, even I can’t help but be tempted. Imagine the real estate ad: "Come live in your very own haunted house! The ghosts are free, but the renovations will cost you!" But you know the old saying: “If the house is too good to be true, it probably comes with ghostly tenants and a bad septic tank.”
So why this phenomenon, you ask? Well, Japan’s got an aging problem—not the fine wine kind, but more like the “Oops! I forgot to water the houseplants for the last 30 years” kind! With the death rate soaring higher than the birth rate, there are more empty homes than people wanting them. It’s as if the entire country sat down collectively at the end of a glorious buffet and said, “Nah, we’re good.”
Local folk look at akiyas with a mix of disdain and superstition. You can practically hear grandma’s voice warning, "If you touch that house, you’re inviting bad luck!" It’s like they think living there might turn them into a character on an old horror movie—don’t forget your popcorn!
And then we have our foreign friends! Enter Anton Wormann, the Swede who’s just been bitten by the Japanese real estate bug. Seven abandoned properties? Good on him! He’s in deeper than a cat in a litter box! Sure, he’s invested $110,000 and is pulling in a cool $11,000 a month in rent, but wouldn’t you just chuck the math if it weren’t for the Japanese tea ceremonies and sushi-making classes he’s probably taking too?
Now, let’s be honest, folks. If you’re a do-it-yourself enthusiast or a hobbyist with a taste for the quirky, these akiyas could be your dream come true. But for those looking for quick, high returns, you might find yourself haunted by financial regret. Like expecting a lottery ticket to pay your rent—eventually, the dream just turns into nightmares.
And while we’re at it, what’s this? Czechs looking overseas for real estate? Apparently, they’ve found that southern Europe offers apartments at the same prices as “up in the mountains.” Seriously, folks, who needs scenic views of the Alps when you could be in Southern Europe and enjoy all those rich culinary delights? Let’s just say the only mountains in this case should come up as a reminder to keep your feet on Earth, rather than on renovation blueprints.
In conclusion, akiyas in Japan may not be your perfect dream property, but they are definitely a quirky item in the real estate market. And remember, if you’re ever tempted to go house-hunting in the land of the rising sun, it might be wise to bring a sage stick, just in case those resident spirits start getting a little too friendly! Don’t forget your sense of humor—you’ll need it!
Japan is not lacking in available real estate; rather, it grapples with a significant challenge of having too many vacant properties. The country currently faces a staggering oversupply, with government statistics for 2023 revealing that there are over nine million empty homes, commonly referred to as “akiyas.”
These houses are typically abandoned for decades, and their dilapidated state reflects this neglect. What sets them apart, however, is their incredibly low price point. Many of these properties can be acquired for under $10,000, approximately a quarter of a million crowns, as highlighted by CNBC.
The roots of this phenomenon are deeply entrenched in Japan’s demographic challenges. As one of the world’s most aged societies, Japan faces a mortality rate that significantly exceeds its birth rate. Tetsuya Kaneko, a consultant with Savills Japan, elaborates, “The problem of akiya has its roots in the post-war economic boom, which triggered an explosion in housing construction.”
Are they haunted?
The trend of young people migrating to urban centers for work has further exacerbated the situation, leaving rural areas predominantly populated by senior citizens. “Residents view akiyas as burdensome,” Kaneko explains, noting that heirs often hesitate to occupy or sell these properties. Many even associate homes older than 30 years with mystical superstitions, considering them haunted and potentially jinxed.
In summary, the Japanese perspective tends to see these properties as a source of more challenges than advantages. The founder of the Japanese real estate blog, Cheap Houses Japan, elaborates, “The low prices are chiefly due to assumptions that the cost of renovations will outstrip the property’s value.”
Owners are still discovering houses. Both Kaneko and the real estate experts confirm that foreign demand has surged recently. For instance, Swede Anton Wormann, who fell in love with Japan during a work trip, now owns seven abandoned properties. He was drawn in by the enticing prices.
Wormann has successfully renovated three of his properties, with four more conversions currently in progress. He has invested around $110,000 in both the purchase and renovation, amounting to about 2.6 million crowns. His short-term rental income is projected to reach around $11,000 monthly, approximately 260,000 crowns.
When asked about the profitability of his investments, Wormann replies, “Yes and no.” While the houses generate substantial income, this success hinges on his ability to grasp Japanese culture and local nuances.
“Without understanding the local culture and how Japan operates, I’d be squandering money,” Wormann asserts. Local real estate experts echo his sentiments, noting that akiyas can be a worthwhile investment, but only for a select group of individuals: particularly enthusiasts, DIYers, or those in search of a countryside escape. “Investors seeking quick, high returns may find themselves disillusioned,” Kaneko cautioned.
Special Real Estate Club
Realitní Club is a multi-platform initiative by newstream.cz, focusing on real estate and targeting both B2B and B2C audiences. The project comprises three fundamental components: web, print, and events, with a strong emphasis on social media engagement. The Realitní Club’s dedicated page was the inaugural launch. This special segment is divided into four categories aimed at exploring key areas of the real estate market in depth.
- Brownfields: the vision and future of undeveloped areas, especially in major cities;
- Commercial real estate: covering offices and coworking spaces;
- New construction: focusing on development, rental housing, cooperative housing, and mortgages;
- Reality and politics: examining the role of municipalities and central government in construction.
The platform will feature conversations with developers, politicians, architects, and designers.
Topics related to real estate:
Parently proving that with the right vision and effort, it is possible to turn these abandoned houses into profitable ventures.
This situation presents an interesting juxtaposition between cultural perceptions and the economic opportunities that arise from Japan’s unique real estate landscape. As the market continues to evolve, it remains to be seen how local attitudes towards akiyas might shift, especially as more foreign investors recognize the potential hidden beneath the dust and disrepair.
while akiyas may not be the future dream home for everyone, they represent a fascinating aspect of Japan’s real estate market. With a blend of humor, risk, and cultural nuances, those brave enough to explore this realm could find themselves on an unexpected adventure. Whether you’re drawn by the challenge of renovation or simply the allure of owning a piece of Japan’s unique landscape, it’s crucial to enter with an open mind and a hearty dose of resilience. After all, who knows what stories might unfold within those walls—ghostly or otherwise!