• By Graham Hill

With all the information about real estate online, has real estate become a self-service industry? In the modern era, with so many online listings for property, do buyers still need a real estate agent to help them buy property? In an increasingly hot property market in Japan, real estate buyers are testing both paths.

Several factors indicate more confidence and stronger forecasts for Japanese property, with substantial momentum coming from the activity of foreigners buying property in Japan. Using a combination of information found online and local real estate agents, foreign investors are helping to create the future of Japanese real estate.

Increasing Property Values in Japan

After years of flat real estate values, there are several signs that Japan’s real estate market is gaining strength. Recently property values are up in major cities like Tokyo and Osaka, and also in the strong regional areas like Sapporo and Fukuoka.

According to Japan’s Ministry of Land, Infrastructure, Transport and Tourism, as of 2024, Japan’s average land prices have been increasing for 3 years in a row. Property values in Tokyo were up 4.1% since 2023. And in Sapporo, 8.4%, with top neighborhoods like Shiroishi-ku up 10.3%.

International interest in Japanese real estate is one reason why property values are going up. Both the strength of foreign currencies versus the yen, and increased access to information and property listings online, are making it easier for foreigners to play a role in Japan’s real estate market.

Several Global Currencies Are Up Versus the Yen

As the relative value of foreign currencies increase versus the yen, foreign buyers can take their currency to Japan and get more property for the same budget.

As of April 2024: one US dollar was worth 157 Japanese yen, an 18% increase over the year before, and a 29% increase over the preceding five years; one Singaporean dollar is worth 115 yen, up 15% versus the previous year, with a 28% increase in the most recent five-year period; and one Hong Kong dollar is worth 20 yen, up 18% and 29% respectively.

Prices for property in Japan are up, but the value of those foreign currencies is rising even faster, incentivizing foreign interest and activity. Buyers from the US, Singapore, Hong Kong, and other countries are searching for property to buy in Japan.

Some foreign buyers start by asking questions to local Japanese agents. Others begin by researching property on their own.

The Internet and Technology Make It Easier to View Property in Japan

Many foreign buyers develop an appreciation for Japan while visiting during business or personal travel. As foreigners flock to Japan for vacations, some take the time to meet with local Japanese real estate companies. However, for many overseas real estate buyers and investors in Japanese real estate, the internet is often the first step in evaluating properties for sale in Japan.

“In practice, the usual process is to first search for an interesting property on a portal site, and then contact the real estate agent handling that property.”

• From the book Real Estate Transactions in Japan, by Tada and Konishi

The language barrier is a persistent challenge in international real estate, but the online property listings in Japan provide some opportunities for foreign real estate investors to begin their search for Japanese property for sale.

Websites That List Property for Sale in Japan

The most comprehensive list of available property to rent or buy in Japan is REINS, a service run by the Japanese government (MLIT). To access those listings, foreign buyers need the help of a licensed Japanese real estate agent.

Many foreigners (and the local Japanese buyers, as well) will choose to go online to look at listings for investment property in Japan without the guidance of a buyer’s agent. There are several websites that provide online profiles of available property to rent or buy.

These sites that list property for sale in Japan are third-party websites that advertise property on behalf of property owners, agents, and property management companies. It is a common part of the seller’s agent’s role to pay an advertising fee to these services to list their clients’ properties online.

The local term for these online property listings websites in Japan is “real estate portal sites.”

Best Websites That List Japanese Real Estate

Buyers that want to look at Japanese property online have a lot of options. There are major Japanese property websites like SUUMO and At Home, and a list of several more niche real estate portals that include companies like Rakumachi, Tenant Shop Network, and Cowcamo.

The big portals tend to be more comprehensive. SUUMO is the biggest and most widely known real estate portal website in Japan. At Home is another large real estate portal site, with listings from more individual real estate companies than any other service.

The alternative property sites in Japan tend to emphasize a specific focus. For example, Cowcamo (featuring Tokyo-based properties) provides specialized focus on used and renovated houses.

“Online listings provide visitors details about property in the Japanese market, showing specifics about price, proximity to local transportation, pictures, floorplans, and more. Looking at property online helps buyers identify property that meet their criteria. Once our visitors find a property they want to buy or renovate, they can work with an agent to see the property in person.”

• Cowcamo, Japanese property portal site

According to Japanese real estate consulting firm Find Hokkaido Agents, there are at least 14 websites that list property for sale in Japan. In addition to the examples above, there are alternatives that have a specific focus on new properties, commercial real estate, special features for mobile users, etc.

These internet listings of property are almost entirely provided in the Japanese language. While investors can see many examples of property for sale, there are communication challenges as they try to understand what they are reading, and again as they attempt to make contact with the owners and agents managing those listings.

Most Real Estate Information is in Japanese

While there are many excellent real estate opportunities in Japan, the language barrier is a persistent challenge for foreign buyers.

The internet makes it easy to see some examples of property online, and to begin to understand the budget required to buy property in Japan. However, the language barrier creates problems as buyers want to ask questions about property, try to make an offer, or begin to look at contracts and sales agreements.

It is absolutely possible to buy, own, and manage residential and investment property in Japan, but clear communication remains an important consideration. The best solution for most buyers is to start with a buyer’s agent that speaks English (or their native language). After Japanese, the next most common language for business in Japan is English.

Start With an English-Speaking Buyer’s Agent

While there is a common instinct to jump online, browse property, and begin a transaction, working with a buyer’s agent is a better solution for most buyers. In addition to understanding the listings and documents involved in the transactions, a buyer’s agent provides many other benefits as well.

A good agent can help a buyer translate the buyer’s goals into a practical plan to buy and own property in Japan. Local real estate agents in Japan can share property listings, and can also provide guidance and perspective on those properties. They can give advice about a given property, and can compare that property to other choices (including choices that are not included on typical property listing websites). Experienced buyer’s agents can provide help evaluating return-on-investment for rental properties in Japan. Finally, they can help negotiate the price or terms of a transaction – and specifically represent the buyer’s interests in those negotiations.

It is not always obvious, but when foreign buyers contact property on their own, they typically do not see the full range of property that is available to them, they encounter problems like “bait advertisements” (property that is already sold or was never for sale), and they can end up in a “dual agency” situation (with a conflict of interest as one agent tries to capture the commission from both sides of the transaction). All those hazards can be avoided when a buyer works with their own agent.

Use Websites for Information, Use Your Own Agent for Transactions

Foreigners buying Japanese real estate almost universally benefit from having a buyer’s agent that can guide them as they search for real estate in Japan. However, there are some activities a buyer can do before they contact an agent, and that can be a prime opportunity for foreigners to use the internet to do some basic planning.

Buyers can research both a location and average property prices in that location, before they contact an estate agent in Japan. Foreigners can use the internet to determine the city where they want to own or invest. And while online property listing websites are often incomplete, buyers can use those listings to determine a range of prices for the type of property they want, which will help them prepare a budget. And once that initial research is done…

Hire a local Japanese buyer’s agent to discuss your goals, to help find specific Japanese properties for sale, to assess the current and future value of those properties, and to facilitate the transaction. That is a smart plan that will help you make the most of your investment.