Looking to invest in a multi-unit property in Japan?
Fireproof wooden apartments—typically 3 to 4 stories—offer strong ROI potential, especially in high-demand areas like Tokyo.
But real costs go far beyond the construction quote.
If a real estate agent just offered you a plot in Tokyo, are you ready to run the numbers?
As one of the few English-speaking construction companies in Japan, Ai Construction, we’ve built dozens of fireproof wooden buildings. Here’s a clear breakdown of what it really costs in 2024.
1. Land Cost: Your Biggest Variable
Land in Japan isn’t cheap — especially in Tokyo.
Here’s the current market range (Published land prices, 2024):
- Tokyo (23 Wards): ¥1,100,000 (Katsushika) – ¥9,800,000 (Chiyoda) per tsubo (3.3㎡)
Tip: Zoning laws must permit fireproof wooden construction. Always confirm this before you buy.
2. Construction Costs (2024 Rates)
For a 3–4 story fireproof wooden apartment, the average build cost is:
- ¥1,200,000 per tsubo (excluding tax)
- Example: A 80-tsubo (265㎡) building = ¥96,000,000
Included in this estimate:
- Fireproof wooden framing and materials
- Compliance with Japan’s Building Standards Act
- Basic interior finishes (no furniture)
3. Additional Costs You Can’t Ignore
These expenses catch many investors off guard:
A. Architect Fees (~5% of construction cost)
- Covers design, permit applications, and site supervision
- Example: ¥4,800,000 for a ¥96,000,000 build
B. Soil Improvement (¥0–¥5,000,000)
After land purchase, a soil survey (jiban chosa) may reveal extra costs:
- Ground compaction: ¥500,000 – ¥2,000,000
- Pile foundation: ¥3,000,000+
C. Consumption Tax (10%)
- Construction: ¥9,600,000
- Architect: ¥480,000
4. How to Save Money
Smart strategies to reduce total investment:
- Buy in emerging areas like Kanagawa, Saitama, Chiba, or near new train stations
- Partner with a reliable, cost-transparent construction company (like us!)
5. Why Fireproof Wood Makes Sense
Compared to reinforced concrete (RC) or steel:
- Cheaper construction costs
- Faster build time (5–12 months vs. 12–18)
- Eco-friendly, appealing to sustainability-minded tenants
- Meets all legal safety standards
Final Tip: Choose a Contractor Who Knows the System
Japanese regulations are strict – and often complex.
Work with a builder experienced in fireproof wooden apartment construction, especially if you don’t speak Japanese.
Need a Custom Quote?
We offer free, detailed estimates based on your land and layout !