Japan's 'Death-Tainted' Homes: A New Real Estate Opportunity
As property prices soar in Japan, homes stigmatized by deaths are becoming attractive investment opportunities, despite their grim histories.
Japan Real EstateMisfortunate PropertiesGhost InvestigationProperty InvestmentSocially Isolated DeathsReal EstateJun 30, 2025
The house that property consultant and ghost investigator Kazutoshi Kodama regularly surveys has a grim history. Seven years ago, an elderly woman hanged herself in the bathroom, and last year, her son died alone, his body undiscovered for roughly 10 days. Kodama, who founded his company, Kachimode, three years ago, conducts detailed investigations to ensure the property is free of paranormal phenomena before issuing a certificate. He uses a variety of equipment, including video cameras, a thermal camera, an electromagnetic field meter, an air pressure gauge, a thermometer, and an IC recorder, to monitor the property from 10 p.m. to 6 a.m. nearly 20 times, taking notes of the readings every hour.
In Japan, homes where murders or suicides have occurred are classified as 'jiko bukken' or 'misfortunate properties.' These properties can also include homes with 'socially isolated' deaths, where bodies are not found for an extended period, leading to the need for special cleaning services or even the replacement of floors and wallpaper. The modern perception of these properties is influenced by Japan's ancient Shinto religion, which holds that when a person dies with regrets, their spirit lingers on earth, often at the site of their death, bearing grudges or overwhelmed by grief.
Finding renters for these properties used to be virtually impossible, but with the recent surge in real estate prices, attitudes are changing. Japan's property market has seen a significant increase in prices due to a rise in construction material and labor costs, as well as an influx of overseas investors attracted by a weak yen and the relative affordability of local real estate. For example, the average price for a second-hand 70-square-meter condominium in Tokyo's 23 wards jumped by more than a third in May from a year earlier, reaching 100.9 million yen ($697,000), according to real estate research firm Tokyo Kantei.
Japan's rapidly aging population has also contributed to the increase in socially isolated deaths. The national policy agency's first-ever report on the issue noted that there were nearly 21,900 cases last year where the death was not discovered for eight or more days. This trend has made it difficult for the elderly to rent properties, as owners worry their properties may become stigmatized. To address this issue, the central government issued guidelines in 2021 recommending that homes can shed their misfortunate property labels three years after such a death, potentially making it easier to find tenants.
Despite these guidelines, owners and agents are still required to disclose the property's history to all prospective buyers and to renters if they inquire. However, the guidelines have spurred interest in misfortunate properties. Kodama, who offers ghost investigation services, is not alone in capitalizing on this market. Other real estate brokers are also seeking to attract investors and younger tenants who are more open to living in these properties.
Investors, both domestic and overseas, are particularly drawn to the potential high yields. For instance, MarksLife, which offers services for misfortunate properties such as ceremonies for lost souls performed by a Buddhist monk, reports that the properties it handles have an average investment return of 8.4%. By contrast, a studio apartment in central Tokyo has an expected average return of 3.55%, according to a CBRE survey.
Japan's misfortunate properties are only going to rise in number, real estate brokers say. People aged 65 or above living alone currently account for 14% of all Japanese households, but in 20 years' time, they will form a fifth, according to the National Institute of Population and Social Security Research. Kodama has yet to sign off on the Chiba property he now rents with plans to sublet, but he has conducted more than 70 investigations, with only a fraction revealing phenomena such as electromagnetic disturbances.
For some prospective buyers, Kodama's certificate might be enough to overcome their concerns. However, others remain wary. Mari Shimamura, a 24-year-old office worker, stated, 'Even with discounts, I'm going to stay away ... It's not just the potential for ghosts; I'm just creeped out by the unusual and unfortunate histories.'
Frequently Asked Questions
What are 'misfortunate properties' in Japan?
Misfortunate properties in Japan are homes where murders, suicides, or socially isolated deaths have occurred. These properties are often stigmatized and can be difficult to rent or sell due to their history.
Why are misfortunate properties becoming more attractive to investors?
Rising real estate prices and an aging population in Japan have made misfortunate properties more attractive to investors. These properties often come with significant discounts and offer higher potential returns compared to regular properties.
What services are available for misfortunate properties?
Services for misfortunate properties include ghost investigations, special cleaning, and ceremonies for lost souls performed by Buddhist monks. These services aim to make the properties more appealing to potential buyers and tenants.
How do government guidelines affect misfortunate properties?
The Japanese government has issued guidelines recommending that homes can shed their misfortunate property labels three years after a socially isolated death. This can make it easier to find tenants and buyers, although full disclosure is still required.
What is the average investment return for misfortunate properties?
According to MarksLife, the average investment return for misfortunate properties they handle is 8.4%, which is significantly higher than the 3.55% average return for a studio apartment in central Tokyo.
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