by Graham Hill

Japan is very popular right now. According to the Japan National Tourism Organization (JNTO), an astounding 40% more foreigners came to Japan in January 2025 than the previous year. Fueled by the popularity of anime and other captivating examples of Japanese culture, and by the historically low prices (based on the favorable exchange rate with the Japanese yen), foreigners are flooding into Japan.

Both cultural reasons and travel time make Japan a top international destination for Hawaiians. People from Hawaii are not just visiting. What begins as a curiosity can become a lifestyle; more and more Hawaiian visitors are exploring options to establish roots in Japan.

Asian People in Japan

It may not be obvious to American readers, but the story of tourism and immigration to Japan is almost entirely about interest from other Asian communities.

The vast majority of both tourists and immigrants to Japan come from other Asian countries. Of the top five countries that send the most tourists to Japan, the top four are all Asian countries – China, Korea, Hong Kong, and Taiwan, with the United States taking that 5th position.

For visitors who have spent any time on the streets of major cities in Japan like Tokyo, Osaka, and Kyoto, the presence of Asian foreigners in tourist districts is unmistakable. In northern Japan, the availability of snow and skiing in cities like Sapporo attract large numbers of Chinese and Korean visitors, as well as other Asian travelers from Thailand, Hong Kong, Singapore, Vietnam, Indonesia, and the Philippines.

“Most of our clients are Asian, including a surprising majority of our clients from the US.”

— FindHokkaidoAgents.com, real estate consultants in Hokkaido, Japan

Asian visitors come for the unique aspects of life in Japan, and they also come because of some recognized cultural similarities that make staying in Japan a comfortable and popular choice.

Hawaii Has the Highest Percentage of Asians of Any US State

According to the American Community Survey (ACS) created by the US Census Bureau, 57% of the population of Hawaii has Asian ancestry – the highest percentage of any state in the US.

If it is true that Asians from foreign countries are thriving in Japan, and that people from other Asian cultures find Japan’s customs welcoming and easy to embrace, the high percentage of Asians living in Hawaii helps explain why Hawaiians choose to spend time and resources in Japan.

Hawaii is the Closest Western Connection to Japan

The geographic proximity of Japan to neighboring Asian locations is at the top of the list of reasons why Asians love Japan. Beyond cultural similarities, flights from Asian countries to Japan are relatively short, making Japan a convenient destination.

The trip by plane from Seoul, Korea to Tokyo is only two hours. From Shanghai, China that trip is about three hours. Even from as far away as Singapore, flight time is only about six hours. Compared to Europe or the Americas, it easier and less expensive for Asians to spend time in Japan.

Similarly, Hawaiians enjoy closer proximity to Japan than any other western population. The trip from Hawaii to Japan is nine hours. While that is still a long flight, Hawaii is three to five hours closer to Japan by plane than the rest of the United States.

Foreigners Buying Real Estate in Japan

Establishing residence in Japan is not easy, but as travelers have good experiences, the fantasies begin: “What would it be like to live in Japan?”

For visitors that have made the trip across the Pacific a few times, researching available vacation homes and other property in Japan is common. Some visitors look for property that could be used as a second-home. Other buyers want a property that can be visited a few times a year, and also rented out to other tourists to help cover the cost (on an Airbnb model, or what the Japanese call minpaku).

The team at FindHokkaidoAgents.com say they receive a lot of requests for vacation homes, for move-in ready condos near shopping districts, and for investment properties.

They also say that there are regular requests from clients that are attracted by stories of akiya, or other low-priced homes in Japan. The akiya phenomenon is yet another hot-topic fueling American interest in Japan.

“‘Akiya toushi,’ the art of investing in abandoned houses, presents an enticing opportunity for those seeking to enter the world of real estate in Japan. This simple concept involves acquiring neglected properties at bargain prices, renovating them cost-effectively, and offering them as affordable rentals.”

— Anton Wormann, from the book Free Houses in Japan

Whether the preference is low-priced akiya or luxury condominiums, for vacation or for business use, buyers see potential in Japanese real estate.

The US Dollar at Historically High Exchange Rate vs the Yen

The strength of the US dollar has created favorable prices that drive more interest in Japan. As of March 2025, one US dollar was worth the equivalent of approximately 150 Japanese yen, an increase in value to US buyers of over 30% since 2020.

The strong dollar means that Hawaiians can get more value for their dollar when they buy in Japan. For tourists, that could mean a much nicer hotel room (or a longer stay) than they could find in 2020. For foreign real estate buyers and investors that bring their currencies to Japan, the favorable exchange rate can mean bigger purchases today, for the same budget, compared to a few years ago.

For Hawaiians interested in real estate, the price of Japanese property can feel like a relative bargain.

Japan Allows Foreigners to Own Property

Japan makes it easy for Hawaiians who want to buy property.

Foreigners can own real estate in Japan, including the land itself. The promise of real estate commissions motivates Japanese real estate agents to help foreigners find property. The transactions are relatively simple to complete. Japan has a strong international reputation for law and order, including property ownership rights for foreigners.

The purchase is often the easiest part of property ownership in Japan. When buyers encounter difficulty, it is often after the sale, with the ongoing responsibilities of owning property in Japan.

Maintaining Property in Japan

The primary challenge for most foreigners that own property in Japan is communication.

While the percentage of foreigners is increasing, business in Japan is still done almost exclusively in Japanese. Other than the real estate agents, foreign owners looking for help with tax responsibilities, repairs, and other aspects of property ownership in Japan struggle to find help.

Paying property tax in Japan is a universal responsibility for property owners, and is often the first real test for a foreign owner.

Japanese property taxes are generally delivered to home owners in April or May of each year. The annual bill can be paid all at once, or in four installments throughout the year. The problem for foreign owners who do not live in Japan full time is: To what address is the property tax bill sent? In most cases, the bill must be sent to an address in Japan. If foreign owners are not in Japan to receive the bill, they can experience trouble as they miss deadlines and fines are assessed. Even if they are in Japan to receive the bill, can they read the tax notices? As most foreigners cannot have bank accounts, do they know where and how to pay those bills?

Foreign owners may have the time to come to Japan to pay taxes in person and otherwise maintain the property. For owners that want a more hands-off experience, or who have investments that require more extensive maintenance (like landscaping, or snow removal), or who need help managing renters and tenants, there are some key services that provide assistance for owners of vacation homes and investment properties in Japan.

Property Managers in Japan

Property management companies in Japan charge a fee to care for property, arrange for repairs, collect mail, pay local bills, manage renters (if any), and sometimes to communicate financial details to tax specialists. Property management in Japan is a service that costs approximately $50-$150 (or more) per month.

If an owner needs in-person work on the property, a property manager that speaks English can be an ideal connection that can service the property and communicate in Japanese with local service providers. They can pay taxes, establish a contract with the local electricity or internet service, pay all the bills for the property, and even remit income back to owners in the US (when the property collects rental income).

For owners that do not need that level of attention, there are other, more light-weight services that may help foreigners accomplish their goals. One solution that covers property taxes (and more) is hiring a local tax administrator.

Tax Administrators in Japan

A “tax administrator” (also called a tax agent or tax representative in Japan) is a role recognized by the Japanese tax authorities; a domestic entity who takes responsibility for receiving notices and bills sent via mail by local tax offices. For property owners with simple needs like property tax responsibilities, a tax administrator can be a convenient and affordable solution, and can be particularly helpful when foreigners do not have a Japanese bank account.

MailMate.jp is a service for expats and other foreigners that provides local Japanese addresses, and can perform the role of a tax administrator for foreigners in Japan.

“MailMate acts as a communication bridge between property owners and tax authorities, both with communication and for payments that must be made from a bank account in Japan.”

— MailMate.jp

While a property manager must usually be from a local business that is located physically close to the owner’s property, companies like MailMate can potentially perform those duties for clients from anywhere in Japan – and at a lower cost than more complete property management services.

Domestic Contact for Foreign Owners of Real Estate in Japan

As of April 2024, there is a law on the books stating that foreigners should include a local contact name and an address (in Japan) on the property registration when they buy property. The enforcement of that law so far does not appear to be strict, but the requirement is a new part of Japanese real estate law.

This domestic contact for Japanese real estate is another issue that foreigners and careful investors may want to resolve as they buy property in Japan. Unlike property taxes, the timing for this service might begin before the purchase – because the name and address of the domestic contact would need to be available before the sale so those details can be added to the property registration.

Using Friends or Relatives to Help with Property Ownership in Japan

For some Hawaiians with local ties to Japan, friends or other close relations may be able to care for the needs of the Japanese property.

While property management is specialized and more involved, if all the owner needs is a local address, and to have a few bills paid, that owner may know someone responsible who is capable of managing those duties to keep the property in good condition and legal standing.

For owners who don’t have willing contacts in Japan (or that want a reliable, professional level of service), property managers, tax representatives, and domestic contact agents can provide the support Hawaiians need to enable their property ownership, and to set the stage to enjoy all Japan has to offer.