Why an empty house in Japan could be your next investment buy
A revitalised rural community in Japan’s Kunisaki Peninsula could be a worthwhile location for foreigners interested in purchasing an akiya or vacant house.
When Paul Christie bought an abandoned farmhouse in Kyushu two decades ago, being a savvy investor ahead of the curve was far from his mind. Instead, he saw it as a way to save this historic building overlooking lush farmland from ruin. Located in the idyllic Kunisaki Peninsula in the Oita Prefecture, it had been vacant for 17 years before Christie, who is now the chief executive officer of Walk Japan, gave it new life by turning it into an office space for the company.
In 2023, the team completed a second renovation to the building, which they named Koumori-tei. The reinvented building – it opens up to a yard on which fertile pomegranate and yuzu trees grow – is now the company’s main base for its booking and customer service team.
Creative transformations like this were once rare in the countryside but these days, the Japanese are increasingly considering such reimaginations as a way to reverse the trend of akiya or vacant houses. This term is often used to describe houses that have been left empty for a long time due to various factors such as Japan’s declining and ageing population, which has led to a surplus of buildings in certain regions like the farming communities.
According to Japan’s Ministry of Internal Affairs and Communications, there were some 8.49 million unoccupied homes across the country in 2018. If this trend is left unreversed, it is estimated that about one in three homes could eventually be left vacant.
That said, with travel regulations having eased up post-pandemic and few restrictions on how these empty houses may be repurposed, a growing number of foreigners are increasingly showing interest in buying these old homes, many of which feature charming Japanese interior elements such as wood beams and panels, tatami-mat rooms and sliding doors. Some have plans to convert these buildings into vacation homes, while others turn them into guesthouses, shops, cafes or even studios for their work.
But this nostalgia-led property trend was not always the case, recalled the British-born Christie, who moved to the Kunisaki Peninsula in Japan in 2002 at the age of 40 to pursue a lifelong dream to live in the rural countryside. “When word got around that I was purchasing akiya, people would approach me because they had no one else to turn to,” said Christie.
In 1997, he begun leading some Walk Japan tours, a company that was started by two Hong Kong University professors to provide academic excursions. Christie became a partner five years later. After several years of personal endeavours to contribute back to his local community in Kunisaki, Walk Japan’s Community Project arm was formalised in 2007 with the aim of revitalising the region, which, like most other rural regions in Japan, was faced with an ageing population and declining job opportunities. The akiya purchases are one initiative that shores up this Project, which also includes programmes like working with local rice and shiitake mushroom farmers, maintaining public land and forestry work.
“I saw these purchases as a way to contribute to the local community because if we did not buy them, chances are they would continue to stay empty. At the same time, at the back of my head, because they were priced reasonably, I thought they may eventually offer some returns,” said Christie.
Today, Christie owns seven properties in the area, of which five have been repurposed as family housing, rental and guest accommodation and offices. He is often consulted by staff and family members who are also seeking out their own akiya. He lives with his Japanese wife and four sons in a beautifully renovated akiya in a farming hamlet close to the small coastal city of Kitsuki. Just across the road, they have a spacious guest house with tatami-mat where they host friends, families and VIPs, most recently, the British ambassador to Japan, Julia Longbottom and her husband Richard Sciver.
Also in the vicinity are two buildings which were the former home and office space of a small construction company that went out of business. They have since been turned into an office space, guest accommodation as well as classrooms. Currently, English language lessons are conducted by a trained South African teacher for children of Walk Japan employees. There are plans to eventually offer classes to local children and adult employees as well.
The business-friendly infrastructure the company has contributed to establishing in this region is already reaping results. Younger, educated individuals, both foreign and Japanese, are settling in Kunisaki and the wider Oita prefecture, instead of migrating to big cities. For instance, Walk Japan has over 140 staff members across 15 nationalities and about 35 of them are based in Kunisaki.
Christie said: “I daresay we are a good example of successfully establishing a business that has very strong roots in the Japanese countryside.”
It helps that the new arrivals tend to have jobs that allow them to work remotely. For example, an idyllic coastal house Christie owns on the edge of the peninsula is currently rented to a former Tokyo-based entrepreneur who is involved in starting a tech-incubator in the area. Instead of working in a conventional office, the entrepreneur often takes business calls in the garden that overlooks the sea and has in turn bought an old building in Kitsuki for his company’s headquarters.
The movement has helped spark interest in akiya in the Kunisaki Peninsula among international buyers; it bucks the trend of akiya purchases closer to urban areas such as the outskirts of Tokyo and Osaka due to their accessibility to international airports. (The Oita airport has multiple daily flights to key Japanese cities including Tokyo, Osaka and Nagoya as well as international connections to Seoul.)
For example, Australian Roxanne Esagunde moved to Japan during the pandemic with her husband, who is half Japanese. A Walk Japan tour leader introduced the couple to Christie and they stayed in one of Christie’s guest accommodations to volunteer with the Community Project for several months. Drawn to the region’s natural countryside beauty, they decided to settle in Hiji, which neighbours Kitsuki. She is now a public relations and marketing executive with Walk Japan while her husband is a tour leader.
In January 2023, the couple purchased a 2,000-sq-ft house in a Kitsuki suburb and moved in in March following some light renovations. The house belonged to an English language headmaster but had been left vacant since he died. Many of his extended family members continue to live on the same street and had helped look after the empty house over the years, said Esagunde, which explained its relatively good condition. “They welcomed us with open arms and were happy to see that the place was being used and maintained,” she observed.
The interest in akiya is also creating newfound opportunities for tourism in the region. Along the picturesque white sand Nada Beach just 10 minutes from Oita airport is Nada Beach House. It is surrounded by green pine groves and is a stone’s throw from the historic Hachiman Nada Shrine, said to date back to the 8th century. Originally built as a rest house for monks and priests on pilgrimage, it evolved into a rest stop for domestic tourists during the 1960s and 1970s. However, it eventually shuttered following depopulation in the area.
In 2020, Walk Japan tour leader Tetsuo Sato, an Oita native who has lived in different countries around the world, restored and renovated the Beach House before reopening it for business so travellers can once again spend time in this historic locale.
Its tranquil location remains as idyllic as ever. The beach house, which has panoramic views of the Iyo Sea, is one of the best spots in Kyushu to watch the sunrise. A distinctive orange-red torii gate perched atop a rocky outcrop on the sea adds to the Instagram-perfect vibe of this secluded beach.
For travellers seeking to hang loose while enjoying an authentic slice of Japanese life, it hardly gets much better than this.
What you need to know before buying an akiya
- Many regional towns and villages have what is termed an “akiya bank”, which are essentially listings of available properties. However, these are usually in Japanese so get ready to use a lot of Google Translate. That said, there are many vacant houses that are not on these akiya banks for various reasons so it would be useful to befriend locals and ask if they have heard of any vacant houses available for sale.
- While it has been documented in media articles that some akiya can go for as low as US$500 ̶ or are even given away at no cost ̶ buyers who think this is a great deal should be aware that such rock bottom prices are usually indicative that the house is in an extremely dilapidated condition. Do your homework diligently.
- Foreigners are not restricted from buying property in Japan and pay the same fees, registration and property taxes as locals. However, these regulations can get confusing so it is best to work with an experienced real estate agent.
- Know that renovation costs in Japan are very expensive, so if you plan to renovate your akiya, be sure to factor this into consideration. Alternatively, take a leaf from many others who have bought akiya and DIY your own renovations.