Japan’s Abandoned Houses: Crisis or Expat Dream? | Full Episode | SBS Dateline

It sells for two million. Was it three million? I don't think I'll ever be able to own a house in Australia. My friends are paying $600 or $700,000 for a one-bedroom apartment. Not to mention a house. With prices soaring at home, Australians are going all out to buy a home. Some go as far as Japan, where people are giving away their homes or for a bargain to prevent them from being

abandoned

. This whole country has beautiful buildings and the further you go from the metropolitan areas, the cheaper the prices. And while many Australians benefit from inheriting property, the opposite is true in Japan.

They are considered emotional but also legitimate financial burdens. As home ownership becomes increasingly expensive in Australia. We'll see. How far would you go to get your foot on the property ladder? I managed to make the Australian

dream

come true here in Japan. It's lunchtime in Ibaraki Prefecture, about an hour's drive northeast of Tokyo. And on a hot summer day, an Australian

expat

hosts a barbecue for his neighbors and friends. Hey. Yay! Hi Jen! Thank you very much for inviting us. Thanks for coming. Jaya Thursfield is a new homeowner who found a unique way to enter the real estate market.

I am originally from Melbourne in Australia and my wife Chihiro is from Ibaraki in Japan. We decided to come to Japan mainly because house prices in Melbourne were way beyond our budget. I had heard about akiya and cheaper properties, so we decided to move to my wife's hometown and look for a cheaper place to live. As housing prices in many parts of the world soar to dizzying heights, it is estimated that there are more than 10 million empty

houses

, or akiya, spread across Japan. They are unwanted

houses

, mostly in the Japanese countryside, that have been

abandoned

as people move to the cities, and that can be purchased at a bargain price.

If you're looking for a place in, say, a rural area, and the further you get from a big city, the cheaper it gets. Even if you know someone, they may be willing to give you a house. You won't find akiya on conventional real estate agent websites. Local municipalities have created a program called akiya bank through which people can easily list an empty house. Jaya found her akiya in a newspaper advertisement. Let's go in. While impressive from the outside, I expect a once abandoned house could use some work. Wow! Look at this place. Isn't it magnificent? Incredible!

Built on a generous 800 square meter block, this 250 square meter house has three bedrooms, a bathroom and a guest room. This is our open plan kitchen diner. Here we opened the roof to expose the traditional joinery and beams. Much of this is typical of Japanese temples. This part of the house is called engawa and is like a sunroom that surrounds the traditional living areas of the house. Reminds me a bit of traditional Queenslander houses. Is this a Japanese version of that? Yes, that's exactly what it is. It is a kind of interior terrace. We can open the sliding doors to the outside, so it looks like a kind of mix between inside and outside.

A house like this in Australia would be very expensive. If you don't mind me asking, how much did you pay for this akiya? We bought this house for 3 million yen, about 30,000 Australian dollars. That sounds so cheap. Would you consider it a bargain? It's not as bargain as it sounds because it took a lot of work to clean the house. They really have left it all here. This house was not a turnkey purchase. The kitchen, which is on another level, I think we will redo the bathroom. Jaya has been working on renovations for the past three years, a journey she documented on her now-viral YouTube page.

So she didn't have any experience with renovations and my mother-in-law thought we were crazy to acquire a place like this. And even my wife had some doubts at that time. Chihiro, Jaya's wife, grew up in this town but she didn't really want to return to the countryside. Would you have bought an akiya? Why not? Generally, Japanese people are not that interested in buying an akiya and moving into one. They usually bought one and then tore it down and built a new house. I feel very satisfied having worked on the house myself. It's hard work, but at the same time we saved this house.

And how much did you spend on your renovations? So so far we have invested about AU$250,000 in renovations. Our goal was around 200,000, but our

dream

s expanded and we ended up spending a little more than we expected. But for Jaya, it was worth every dollar. And now, for a fraction of the average Australian home price, the Thursfields are living the dream. I feel really satisfied, to be honest. You can choose between a $2 million house in Melbourne and a cheap house in Japan. That's more money we spend on our children and on our own lives and happiness. And a life without mortgage stress is an attractive prospect.

What I want to know is how can an Australian like me buy an akiya like this? If you can't speak Japanese and don't have anyone to help you through the process, you will encounter immediate problems. You want to do it, come to us. Originally from the US, Matt Ketchum and Parker Allen are real estate consultants trying to make Akiya and the countryside great. As you can see, it is quite spacious. We have a kind of dining room there, living room here. Both are long-time residents of Japan and speak fluent Japanese. Today, they are doing their best to get rid of a house in a mountain village near Nagano.

This symbolizes the leaves. And this symbolizes the moon. It's the moon? Yes. I liked it without knowing it but now I like it much more. Exactly correct? We are a door to door service. We offer everything from finding viable properties, meeting our clients' criteria, to helping them view those properties and receiving the keys in their hands. We have an exact replica of the samurai armor. Awesome. There are no restrictions on foreigners buying houses in Japan, but this does not automatically come with a visa or residency. Foreigners must self-finance or work remotely. Despite these obstacles, Matt and Parker say demand for their service is constantly increasing.

This is some good electrical work, right? We work with people in the United States, Australia, Europe, Asia. We have days when we receive hundreds of queries. And I mean, even on a slow day, there are dozens. In terms of akiya, what would be a cheap deal? Well, the cheapest end is around 9,500 Australian dollars. Only $9,500 for a house is super cheap. Is there any catch? At the end of the day, you have to ask yourself: Do you want a cheap house that will cost you tens, if not hundreds of thousands of dollars to repair? Or do you want this, which is already ready to roll?

You move tomorrow. Close to nature, ski slopes and onsen resorts, this house has been empty for about two years. It is still under the care of its owner. and is on the market for $380,000. But there are cheaper deals spread all over the countryside waiting to be found. The hunt has begun. Hunt! Hunt! Hunt! Hunt! Hunt! Hunt! So is this a ritual? Is this what you did before...? Yes, you could call it. Yes, it's a kind of ritual. Matt and Parker often scour the countryside looking for their latest akiya listing and asked me to go with them to look for it.

We are in the countryside, but only 45 minutes drive from Tokyo. So, over here. How many abandoned houses would there be? If you look around you, you will see many houses that are closed and do not seem to be lived in. So there's definitely a double-digit percentage. The growing glut of empty houses in Japan is a problem the government has pledged to address through rural depopulation and concern for Japan's villages. Have you always been on the lookout for something that seems abandoned? I don't know if I'd say bald anymore, but yeah, it's kind of second nature at this point.

More than 90% of Japan's 125 million people live in cities. A demographic trend that has left approximately 14% of the country's total homes empty. It almost seems like they are hiding in plain sight most of the time. Really, that's the truth. Unless action is taken. It is estimated that akiya could exceed 30% of all homes in Japan by 2033. What about that one? That. That! Oh yeah, that looks pretty abandoned. In the foothills of the Chichibu Mountains, Matt and Parker had sniffed out what could be their last deal. This place is amazing. Yes. I can't believe no one wants to live here.

I mean, exactly. It seems that the owners of this place take care of the cacti. He simply went up and left his two-story house. And then how does it work? This house is abandoned. And then you can come and claim it? That's where it gets complicated, because someone owns it. However, the legal owner could be someone deceased. And then, in that case, his heirs would have to be found. Hey, there's something here too. Actually? Oh Lord. And that's where Matt and Parker come in. Oh, here you go. Do you do that much? Oh. The couple charges a fee to put together a portfolio of properties for their clients.

I'm going to take a photo of this. They make money even if you don't find the house of your dreams. We are like a taxi. You get on, tell us where you want to go and we'll take you there. But the counter is working. Then you are useful, but at a price. Exactly. Like any type of consultant, we charge a fee. However, the more abandoned houses you see in a community, you just have this feeling of loneliness, of sadness. Mentally and visually, it harms the community. And we see it and we want to do something about it.

The Japanese government does the same. Earlier this year, Japan began offering families moving from Tokyo to the countryside around $10,000 per child. Some local governments also offer grants to cover part of the renovation costs or part of the demolition costs. But Matt and Parker haven't seen that changing the situation. It used to be that in Japan, the family farm was the center of everything. But that has changed. And now everything is new, new, new. It is the stigma of the countryside and of living in the countryside. If you're not in Tokyo, then you're not fine. In contrast, houses in the Japanese countryside are often considered depreciating assets.

Many have little or no real estate value. So when its occupants leave, the house often remains empty. And it is generally seen as a burden to inherit, an akiya. They are seen as emotional burdens, but also as legitimate financial burdens. They say that in life there are only two certainties: death and taxes. And Japan is no exception. The country has one of the highest inheritance tax rates in the world. The maximum rate is 55%, which makes many Japanese not want to inherit their family home. Since the death of her parents, life has not been easy for Tsuyako Miyake.

Miyake inherited his parents' two-story house in the Setagaya district, southwest of Tokyo. This district is home to some of the most attractive neighborhoods in the city, but is also estimated to have the highest number of empty houses in Japan. For Miyake, this house is

full

of memories. Faced with a feeling of expectation and sentimental attachment, Miyake has felt unable to sell the house. Instead, it has become an akiya. And his indecision has been exhausting. In Japan, real estate prices generally depend on the value of land, which, unlike houses, often maintains or increases in value. As the number of empty houses grows in Japan, an industry of akiya consultants has emerged to help people deal with their inheritance problems.

To help her find a path forward, Miyake has enlisted the services of Akiya's consultant, Takamitsu Wada. In a quiet corner I want to know what Wada thinks is stopping Miyake from selling his akiya. Do you think inheriting an akiya is a blessing or a curse? To try to stop the abandonment of akiya, the government has allowed local authorities to issue orders and fines if owners ignore maintenance requests. Recently, Kyoto City announced that it would introduce a tax on empty homes starting in 2026. Are people trying to avoid inheritance tax by not claiming ownership of the house? What do you think is the reason for the huge number of empty houses here in Japan?

But one person's burden can be another's good fortune. Kujukuri Beach in Chiba Prefecture is about an hour's drive east of Tokyo. It is known for its fresh seafood, family farms, and as one of the best surf spots in Japan. Their municipality has a population of approximately 15,000 and there are many akiya waiting for new owners. I originally came here just to teach English on an adventure and somehow never left. I came here to meet an Australian looking to invest in a cheaper version of the homeowner's dream. I don't think he'll ever be able to have a house in Australia.

I mean, my friends are paying $600 or $700,000 for a one-bedroom apartment, let alone a house. Originally from Brisbane, Dara Robinson and her Bulgarian husband have been looking for a radical change. We live inA very central area of ​​Tokyo and it's really convenient, but not very relaxing. I miss the sound of wildlife and nature. Look at this view. And what do you think of the prices of an akiya compared to house prices in Australia? I would like a house to raise my children, so the prices here are crazy. Mortgage rates in Japan are also really low. Even if we get a mortgage, it is not very burdensome to pay it.

I mean, it's less than the rent we pay now in Tokyo. And yes, with the rise of remote work. Perfect. While foreign buyers typically can't get a mortgage in Japan, permanent residents like Darra can. And again, that's cheaper than in Australia too. Today, Darra is checking out a nearby akiya with the help of some familiar faces. Hello Dara! Hi thanks! I'm glad to see you. Please pass. Here we have the main Japanese room. It is a room with eight tatami mats, perfectly square. This akiya is a fixer-upper with one bathroom and three bedrooms. Once the pride and joy of an elderly owner, this house has been in the same Japanese family for three generations.

You can actually see the ocean in the distance. Actually? Just here? I would love to be able to walk to the beach. Oh, you can. Oh, it's a very short record. But now the younger generation doesn't want it. And the sale price is incredible. This property is on the market for approximately AU$50,000. For an entire house near the beach? That is incredible. A house in Australia near the beach would cost one or two million dollars. Wow. Yes. Well, this one costs $50,000. Much more affordable. So what do you think? Can you imagine living in it? Yes, definitely.

Like the rice fields everywhere, the beach is 10 minutes in that direction. But it seems to be quite popular here too. not too isolated. A good compromise. It's hard to imagine why more and more people aren't rushing to buy a holiday home by the sea. But in 2018, the Japanese government introduced restrictions on how many days a year owners can rent out their property as Airbnb. That's very nice. Look at all these bonsai trees. But that has not diminished the interest of foreigners like Dara who are looking for a house at a bargain price. Several people have said they are interested.

It is a great location. It is a good construction. And the price! The price is quite attractive. We're pretty sure this will go away quickly. This suburb is

full

of akiya at every turn. I find them easier and easier to spot. While foreign investors can breathe new life into an area, do people who live in small towns really want them? How would you like it if foreigners moved to the city after buying an akiya? While foreign investment in Japan's cheap houses could be part of the solution,

expat

s pay a high price to be here. Hello how are you?

We look exactly the same. In Australia I still have my parents and also my brother. He's boiling over here. It's like 37 degrees. I had no idea. I miss my brother and I also miss not having spent so much time with my brother's children, my nephew and my niece. While foreigners may want to give their children a childhood like theirs. Will Japan's housing

crisis

and inheritance burden leave their children with a poisoned chalice? I'm not really worried about leaving children without an inheritance. They would inherit a house. I don't know if they would choose to live in his house.

Maybe it will become an akiya. The difference between an akiya and a home really comes down to one main thing: life. It feels good to have built a life here in Japan. A couple of things I really wanted in a house was a big backyard. Having grown up with one, I just wanted the same for my kids. I feel like I've managed to make the Australian dream come true here in Japan, and that's increasingly difficult in Australia.