Reader AP asked how house and land prices are decided in Japan.
"If a person has lived in a house for over 40 years without any type of contract and either the landlord wants to sell or the tenant wants to buy the land and house, how is the price determined? Is there a special formula for such a sale? I have heard of such sales at an exceptionally low price, but I have never heard how the price was determined."
In principle, the owner is free to set the price, regardless of whether someone has been living on the property or not, explained Adam German, General Manager of Real Estate Japan.