What Is an “Accident Property” in Japan?

A Complete Guide for Foreign Renters and Buyers

When searching for real estate in Japan, you may encounter the term “Accident Property”, known in Japanese as Jiko Bukken (事故物件). This concept is unique to Japan and can be confusing for foreigners. This article explains what accident properties are, how they affect pricing, and what foreign renters and buyers should know.

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What Is an Accident Property (Jiko Bukken)?

An accident property refers to a property where a psychologically impactful event occurred in the past. Even if the property is physically safe and fully renovated, the psychological history is considered important in Japan.

• Suicide
• Homicide
• Fire-related deaths or serious accidents
• Solitary death where the body was undiscovered for a long time

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What Is NOT Considered an Accident Property?

Not every death makes a property an accident property. The following cases are generally not classified as accident properties:

• Natural death due to illness or old age
• Death occurring in a hospital after moving out
• Natural death discovered immediately

In these cases, disclosure is usually not required.

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Disclosure Rules in Japan

Rental Properties

• The accident must be disclosed to the first tenant after the incident
• After that, disclosure may not be legally required, but many agents still disclose it

Properties for Sale

• Accident history usually must be disclosed, even years later
• This is especially important for foreign buyers unfamiliar with Japanese customs

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Why Are Accident Properties Cheaper?

Accident properties are often priced 10% to 50% lower than similar properties. The discount depends on:

• The type of incident
• The time passed since the incident
• Location and market demand

For some foreigners, this price difference can be attractive, especially if cultural stigma is not a concern.

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Should Foreigners Avoid Accident Properties?

Not necessarily. The decision depends on personal values and purpose.

Advantages

• Lower rent or purchase price
• Same layout and location as standard properties
• Potentially higher investment yield

Disadvantages

• Lower resale value
• Some Japanese tenants may avoid the property
• Possible emotional discomfort

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Cultural Background: Why It Matters in Japan

In Japan, there is strong cultural sensitivity toward death and memory. Even people who do not believe in ghosts may feel uncomfortable living in a place associated with a tragic event.

Understanding this cultural context helps foreigners make informed decisions without misunderstanding Japanese real estate practices.

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Important Advice for Foreign Renters and Buyers

• Always ask directly if the property has an accident history
• Work with a real estate agent experienced with foreign clients
• Consider long-term plans (living vs. investment)
• Do not judge by price alone—clarity and transparency are essential

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Conclusion

Accident properties in Japan are not unsafe or illegal. They are simply properties with a psychological history that affects value.

With proper explanation and professional support, foreigners can decide whether an accident property fits their needs and investment goals.