Akiya “空き家” are abandoned or vacant houses in Japan, increasingly common in rural and urban areas due to demographic shifts like an aging population and urban migration. As younger generations move to cities for work and better living conditions, many homes in the countryside are left unoccupied.
Investing in Akiya in Japan: Risks and Rewards
Akiya often fall into disrepair, presenting challenges in maintenance costs but also opportunities for affordable home ownership and renovation projects. Some local governments have created akiya banks, online databases listing available vacant homes and offering incentives to buyers, aiming to repopulate rural areas. Akiya can be transformed into guesthouses, cafes, or community spaces, contributing to community revitalization and highlighting broader demographic and social changes in Japan.
What Is the Current State of Akiya in Japan?
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According to the Land Survey by the Statistics Bureau of the Ministry of Internal Affairs and Communications, there were around 8.49 million vacant houses in Japan in 2008, making up 13.6% of all dwellings. The Nomura Research Institute’s “Housing Market in 2030” projects that this number will rise to 21.66 million by 2033, with a vacancy rate of approximately 30.4%.
As of today, according to the Ministry of Internal Affairs and Communications, 14% of all residential properties in Japan are vacant.
Unoccupied houses lead to numerous issues, such as community safety hazards from collapsed structures, illegal rubbish dumping, suspicious fires, arson, and the breeding of stray cats and pests. As the number of households declines, the increase in vacant houses with these adverse effects is anticipated to continue. To address this, the government is encouraging the purchase of these vacant properties.
How to Find and Buy: Akiya Banks
Akiya banks will be your most helpful resource for purchasing available akiya.
the banks themselves are usually run by the municipalities or NPO organizations with the information provided by the local governments.
Akiya banks are the best option if you are not sure yet where or what type of property you would like to purchase : Akiya banks offer the widest database with properties all over the country with different price ranges, so you can start browsing for your desired place.
Once you find a property of interest, you can apply for registration and, upon approval, request an on-site inspection.
Akiya Banks in Japanese
- LIFULL HOME’S Akiya Bank
- At Home Akiya Bank
- Official website of the Ministry of Land, Infrastructure, Transport, and Tourism with links to regional and local akiya databases.
- Public Real Estate, also by the Ministry of Land, Infrastructure, Transport and Tourism: This portal site is designed to connect local authorities, who are actively seeking to make effective use of public real estate (PRE), with private sector operators. It features information on the sale and lease of under-utilized land provided by local authorities and integrates this with details on private sector proposals.
- Furusato net
Akiya Banks in English
What Are the Disadvantages of Investing in Akiya?
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High costs for renovations: Vacant buildings in Japan often face issues due to their age, including mold, condensation, and severe damage from leaks if left unused and poorly ventilated. Outdated equipment, particularly in water areas, may need a complete replacement, leading to high maintenance costs.
For example, the building must meet new earthquake resistance standards. A seismic diagnosis and potentially costly seismic reinforcement may be required for homes built under old standards. Even newer buildings that have undergone extensions or renovations may need an earthquake-proofing diagnosis to meet current standards. If they don’t, reinforcement work will be necessary. These unique costs associated with vacant houses necessitate thorough financial planning. Prospective buyers should obtain renovation estimates and consider these factors before signing a sale contract to avoid unexpected expenses.
Mortgage: Obtaining mortgage deductions for old and vacant houses is more challenging. Typically, mortgage deductions are available only if the house is less than 20 years old or the flat is less than 25 years old. Properties older than these limits must meet at least one of the following conditions to qualify.
Mortgages are typically structured so that the financial institution provides a loan using the purchased property as collateral. For older vacant properties, securing a loan can be challenging due to the property’s diminished value or the condition of the land.
Still Considering Buying Akiya in Japan?
Investing in akiya, or vacant houses, in Japan presents both challenges and opportunities. While these older properties often require significant renovations, they offer affordable entry points for home ownership and creative projects. Local governments and NPOs support akiya banks to help buyers find these properties, aiming to revitalize rural areas. Transforming akiya into community spaces or guesthouses can help counter urban migration and foster vibrant, sustainable communities.
More reads:
- Initiatives to Repopulate the Abandoned Villages/Ghost Towns in Japan
- Impacts of Japan’s Population Decline and Possible Solutions
- “Akiya”, the Phenomenon of Vacant Japanese Houses
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