Real Estate Without Borders: Episode Summary

Title: Japan has 9 million empty homes. Are they a good investment?

Release Date: May 5, 2025
Host/Author: Real Estate Without Borders

1. Overview

In this episode of "Real Estate Without Borders," hosts A and B delve into a captivating real estate phenomenon: Japan's staggering 9 million empty homes, locally known as "Akiya." As global urbanization intensifies housing shortages in major cities, Japan faces a paradox of abundant vacant properties in rural and suburban areas. The hosts explore the investment potential of these homes, comparing Japan's situation with similar trends in other countries, and discuss the challenges and opportunities for international investors.

2. Japan's Empty Home Phenomenon

The episode opens with B introducing the central topic:

B [00:07]: "Welcome to another eye-opening episode of Real Estate Without Borders. Today we are diving into the most fascinating property phenomenon in our time, which is Japan's Ikea Aki A."

Japan's "Akiya" are largely abandoned homes scattered across the country, available for remarkably low prices—sometimes as little as a dollar. This situation stems from significant cultural shifts, demographic changes, and urban migration, resulting in a unique investment landscape that attracts both seasoned investors and curious newcomers.

Key Points:

• Scale: Japan's issue is unparalleled, with approximately 9 million vacant homes as of 2023.
• Location: Predominantly in rural and picturesque villages, reminiscent of settings from anime like Princess Mononoke.
• Government Involvement: Official documents confirm the extent of the vacant properties, highlighting a national concern.

3. Similar Trends in Other Countries

The discussion broadens to include similar phenomena in Italy, Spain, Greece, and South Korea, where rural depopulation has led to ghost villages and abandoned properties.

A [03:30]: "And you have to like spend a certain amount to like 20k euros or something. So like it's... it ends up not actually being that good of a deal..."

Highlights:

• Italy: Rural villages offer homes for as little as €1 to rejuvenate abandoned communities, often requiring buyers to renovate within a set timeframe.
• Spain: Regions like Galicia and Asturias have entire hamlets up for sale, with opportunities to transform them into resorts or other ventures.
• Greece: Many islands and rural areas face similar abandonment due to younger generations moving to urban centers.
• South Korea: Parallels Japan's situation with demographic challenges leading to rural property abandonment.

4. Investment Models and Opportunities

A significant portion of the episode focuses on investment strategies to capitalize on Japan's Akiya, particularly highlighting Shu Matsuo's innovative model.

a. Shu Matsuo's Model

Shu Matsuo, founder of Post Fee and co-founder of IKEA Hub, presents a "done-for-you" service tailored for international investors aiming to purchase, renovate, and monetize Japan's vacant homes.

B [07:39]: "Shu Matsuo's model of profiting from IKEA for short term stays and exploring different ROI avenues."

Features of Shu’s Model:

• Acquisition Assistance: Handles sourcing, purchasing, and renovating properties.
• Property Management: Manages rentals through platforms like Airbnb, targeting high rental yields (5-10%).
• Overcoming Barriers: Addresses language, cultural nuances, and logistical challenges, making it appealing for non-residents.

b. Anton Wurman's Experience

Anton Wurman, a content creator and real estate investor, exemplifies successful investment in Japan's Akiya market.

B [20:20]: "Anton Wurman... ended up buying a place in Japan. And six years later, he owns seven Ikeas and works as a full-time content creator and real estate investor in Japan."

Anton’s journey illustrates the potential for substantial revenue, with his properties reportedly generating six figures annually.

5. Challenges and Barriers

Despite the enticing low entry costs, several obstacles make investing in Akiya complex.

a. Demographic Decline

Japan's population peaked around 2009 at approximately 128 million and has since declined to about 124 million.

A [06:20]: "Japan's population looks to have peaked at like 128 million in 2009, and now it's down to about 124 million."

This shrinking population exacerbates the demand-supply imbalance, as fewer people are available to purchase and occupy homes outside urban centers.

b. Cultural and Logistical Hurdles

Investors must navigate Japan's cultural landscape to ensure successful integration and acceptance within local communities.

B [21:40]: "Local communities may resist outsiders, especially foreigners, buying a Kia, fearing disruption or neglect cultural."

• Language Barriers: Non-Japanese speakers may find it challenging to manage properties without proficient language skills.
• Cultural Integration: Success requires active participation in community events and respect for local norms, deterring casual investors.
• Regulatory Hurdles: Navigating Japan’s property laws, visas, and residency requirements adds layers of complexity.

c. Financial Considerations

• Renovation Costs: Initial purchase prices are low, but renovation can demand substantial investment (e.g., a €1 home may require €100k in repairs).
• Property Taxes and Maintenance: Ongoing costs can erode potential profits, especially in areas with low rental demand.
• Market Saturation: With millions of vacant houses, competition among investors can limit rental yields and property appreciation.

6. Is It a Good Investment?

The hosts debate the viability of Akiya as a profitable investment avenue.

A [15:25]: "I think it's can be... Maybe you can get a loan and renovate the property and Airbnb it... it might just not actually be that good of an investment."

Pros:

• Low Entry Cost: Initial purchase prices make it accessible for investors with limited capital.
• Unique Opportunities: Potential to convert historic or scenic properties into lucrative rental assets.

Cons:

• High Upfront and Ongoing Costs: Renovations and maintenance can offset low purchase prices.
• Low Demand: Limited rental interest in remote or less desirable locations diminishes revenue potential.
• Cultural and Logistical Barriers: Significant effort required to integrate and manage properties effectively.

7. Conclusion and Future Outlook

The episode concludes with a nuanced perspective on Japan’s Akiya market. While there are opportunities for savvy investors willing to navigate the complexities, the challenges—demographic decline, cultural barriers, and financial risks—pose significant hurdles.

B [21:27]: "Shu Matsuo emphasizes respecting local sensibilities... you need to create a good community and good social network in Japan in order to make it successful."

The hosts express interest in further exploring the topic by inviting experts like Shu Matsuo and Anton Wurman to share deeper insights and firsthand experiences. They emphasize that while the Akiya phenomenon presents intriguing possibilities, it requires a strategic and informed approach to transform vacant homes into profitable investments.

Final Thoughts: Investing in Japan’s empty homes can be rewarding but demands thorough due diligence, cultural understanding, and a willingness to engage deeply with the local environment. As global urbanization trends continue, Japan's Akiya may serve as a microcosm for similar challenges and opportunities worldwide, offering valuable lessons for international real estate investors.

Notable Quotes:

• B [00:07]: "Imagine this... 9 million empty houses scattered across one of the world's most expensive countries, some selling for less than the price of your morning coffee habit."

• A [03:30]: "So like it's... it ends up not actually being that good of a deal because I really looked into those ones..."

• B [07:39]: "Shu Matsuo's model of profiting from IKEA for short term stays and exploring different ROI avenues."

• B [20:20]: "Anton Wurman... ended up buying a place in Japan. And six years later, he owns seven Ikeas and works as a full-time content creator and real estate investor in Japan."

• A [06:20]: "Japan's population looks to have peaked at like 128 million in 2009, and now it's down to about 124 million."

• B [21:40]: "Local communities may resist outsiders, especially foreigners, buying a Kia, fearing disruption or neglect cultural."

Join the Conversation:

Hosts A and B encourage listeners to engage by subscribing, leaving reviews, and sharing the episode with others interested in international real estate investment. They also express eagerness to connect with industry experts to provide deeper insights in future episodes.

Stay Tuned:

For those intrigued by the potential of Japan’s empty homes or similar global real estate trends, this episode offers a comprehensive exploration of the opportunities and challenges, setting the stage for informed and strategic investment decisions.