One of the first things to understand when building a home is the "price per tsubo." By understanding the price per tsubo, you can compare construction cost levels across homebuilders and local contractors and build an appropriate budget plan. In this article, we explain how to calculate it, what to check, and even the hidden costs involved.
What is the "price per tsubo"?
The price per tsubo is an indicator showing the construction cost for each 1 tsubo (approximately 3.31 square meters, or about 2 tatami mats). The formula is "construction price ÷ construction area (tsubo)." For example, if construction costs are 25 million yen and the total floor area is 50 tsubo, the price per tsubo is 500,000 yen. The price per tsubo varies by homebuilder and local contractor, and checking with the sales representative will help you understand each company's pricing level.
Points to check when reviewing the price per tsubo
Confirm whether it is based on "total floor area" or "construction area"
There is no unified rule for how the price per tsubo is calculated. When it is calculated using "total floor area," balconies and porches may be included, while they are not included under "construction area." A calculation based on construction area can make the price per tsubo look lower, but adding balconies and similar features creates separate additional costs. Be sure to confirm which area basis is being used.
Pay attention to costs beyond the price per tsubo
The cost of the main building work accounts for only about 70% of the total cost. The remaining 30% includes ancillary construction costs and miscellaneous expenses.
- Ancillary construction costs: interior work, electrical equipment, exterior work, demolition, land preparation, ground reinforcement work, and more
- Miscellaneous expenses: registration and license tax, stamp tax, real estate acquisition tax, housing loan processing fees, fire and earthquake insurance, water connection charges, and more
It is important to get estimates from multiple companies
Try to obtain estimates for both the price per tsubo and total cost from at least two to three companies. Comparing each company's data makes it clear what level of home can be built within the same budget. A lower price per tsubo is not automatically better. What matters is evaluating the total cost, including ancillary construction costs and miscellaneous expenses.
In addition to the price per tsubo, reviewing the failure patterns introduced in examples of post-construction regret in advance can improve satisfaction with the homebuilding process. It is also helpful to understand the mechanism of building coverage ratio when planning a purchase or construction project in light of building regulations.
Frequently Asked Questions (FAQ)
- Q1. What is the price per tsubo?
- It refers to the construction cost per 1 tsubo (approximately 3.31 square meters). It is an indicator used to compare the pricing levels of homebuilders and local contractors.
- Q2. Is it a better deal to choose a company with a low price per tsubo?
- It is risky to judge based on the price per tsubo alone. It is important to compare the total cost, including ancillary construction costs and miscellaneous expenses.
- Q3. What is the difference between total floor area and construction area?
- Total floor area is a broader area that may include balconies and porches, while construction area refers only to the area of the main building itself. The figure changes depending on which area is used to calculate the price per tsubo.
- Q4. How is the overall construction cost broken down?
- As a general guide, the main building work accounts for about 70%, ancillary construction costs about 20%, and miscellaneous expenses about 10%.
- Q5. Can I find out the price per tsubo myself?
- Because many homebuilders and local contractors do not publicly disclose their price per tsubo, you should either confirm it directly with the sales representative or request an estimate and calculate it yourself.
