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Key Considerations When Choosing Where to Live in Tokyo

If you are not very familiar with Tokyo, it can feel almost impossible to know where to start when choosing an area to live. Tokyo is vast, and without local knowledge, everything can look equally confusing at first glance.

Before looking at floor plans or listing photos, it’s important to imagine how you want to live in Tokyo.

Most clients do not have clear preferences at the beginning. Especially in an unfamiliar city, where there are so many options, it’s very easy to feel overwhelmed and unsure about what is truly best.

That’s why I work with clients to clarify their priorities—thinking together about what is realistically possible in Tokyo—and then select areas and properties that best match their overall vision and needs.

Some people actually feel overwhelmed if they are asked too many questions, so I adjust my approach on a case-by-case basis. But I usually talk through these topics casually during our conversations.

  • How long of a commute is acceptable for you?
  • Do you work from home?
  • Do you prefer a quiet environment, or do you enjoy lively neighborhoods?
  • Are you comfortable walking from the station, and if so, how many minutes?
  • Do you like neighborhoods with a traditional, local “shitamachi”(old charm) atmosphere?
  • Or do you prefer Tokyo’s most modern and cutting-edge areas?
  • How do you usually like to spend your weekends?
  • How often do you go grocery shopping? (Refrigerators in Japan might be smaller than those in your countries!)

By talking over these points together, we gradually narrow down suitable areas and properties.

As a next step, when further refining specific locations and properties, below are key points to consider when choosing a property’s area and location—including factors that don’t appear in listings and may not always be highlighted by your agent.


Location and Rent: What Really Drives Prices in Tokyo

In Tokyo, rent prices are driven primarily by transportation convenience and distance from the station.

A good starting point is to think about where you commute to—such as your office, school or your child’s school—and decide how many minutes of travel time you are willing to accept. From there, consider areas within that radius and compare their characteristics.

Transportation Considerations

Tokyo has an extremely well-developed public transportation system. A 20-minute train ride can take you in almost any direction.

That said, if you dislike commuting, it’s often better to look for areas where you can minimize travel time, or even live within walking or cycling distance. If you need to commute during peak hours, it’s also important to consider whether you can tolerate Tokyo’s notoriously crowded trains.

On the other hand, some people don’t mind being on the train. In those cases, living a bit farther from the city center often means lower rent and a calmer residential environment.

Families and School Considerations

For families with children, it’s common to struggle between living close to school or close to work. This choice depends entirely on each family’s values.

Ideally, attending a school close to your workplace is the most convenient. In central areas like Roppongi and Azabudai, there are international schools such as ASIJ preschool, British schools, Tokyo International School, International School of the Sacred Heart and so on.

However, well-established international schools with spacious campuses—such as ASIJ and St. Mary’s International School—are often located slightly outside the city center.

When considering international schools, think about whether car drop-off is possible, whether school buses are available, and how easy the commute is by train.

(Education options will be covered in a separate article.)

Distance from the Station

In Tokyo, the closer a property is to the station, the more expensive the rent tends to be. If you expect to use trains frequently, living near a station is ultimately more convenient, with more shops and daily amenities nearby. However, station areas are often commercial zones, which can feel busy and cluttered. If you prefer a calm residential neighborhood, looking a bit farther from the station can make sense—particularly when it allows you to rent a property of similar quality at a more reasonable price.

Safety

However, especially for women, keep in mind that residential neighborhoods in Tokyo can become very quiet at night, with little foot traffic. While Tokyo is very safe, walking alone at night on streets with almost no people around may not feel comfortable. This is another important factor worth considering when choosing your home.

The atmosphere of a neighborhood can feel very different during the day compared to at night, so it’s important to keep that in mind when viewing properties.

Terminal Stations and Rent Levels

Major terminal stations such as Ikebukuro, Shinjuku, and Shibuya are large commercial areas, so there are relatively few residential properties directly nearby (though you will find apartments if you walk a bit).

In redeveloped stations like Shibuya, some commercial buildings now include residential floors on upper levels. If you really want to live close to a terminal station, looking between that station and the next one is often a good strategy.

In general, rent decreases the farther you move from terminal stations.

Express Stops vs. Local Stops

Stations where express trains stop tend to be more convenient and therefore slightly more expensive. Stations served only by local trains can have fewer services and feel less convenient.

However, express trains are often crowded, so if you’re comfortable taking local trains at a slower pace, this may not be an issue.

Even along the same train line, convenience can vary greatly from one station to the next depending on how developed the station area is.

Hidden Pitfalls of Train Lines

Some train lines are consistently crowded, prone to delays, or only served by local trains, which can mean fewer services than expected. Japan’s trains have been famous for their punctuality, but in recent years delays have become more common as rail networks have expanded and grown increasingly complex. (As a Japanese, I personally find it hard to tolerate waiting more than 10 minutes for a train at the station.) Since delay patterns tend to vary by train line, it’s a good idea to understand these differences when deciding where to live. These factors are not always obvious from listings alone, so consulting an agent is the most reliable way to avoid unpleasant surprises.

If You Rely on a Car

If your main mode of transportation is driving, proximity to a station becomes much less important. Instead, you should focus on whether parking is included or if nearby parking is available.

That said, it’s important not to underestimate Tokyo traffic. A 30-minute drive in Tokyo traffic might be very different from a 30-minute drive on a quiet highway in your country.

Slopes and Elevation

Tokyo has many hills and slopes more than you expect. Even if a property is listed as “a few minutes from the station,” steep slopes can make the walk more challenging than expected, so this is something to check carefully.

That said, areas on higher ground are often considered higher-grade residential neighborhoods.

Alternative Transportation

Bicycles are also a convenient way to get around, but even cyclists can struggle to find parking. In Japan, bicycles parked in unauthorized areas may be removed by local authorities. In that sense, rental bicycles are extremely convenient, as they eliminate the need to search for parking spaces.

In recent years, shared bicycles and electric scooters have become much more common in Tokyo and are very convenient. Considering crowded trains and traffic congestion, choosing a property with these options in mind can be a practical approach.

Your choice of train line significantly affects your daily life, and even stations on the same line can feel very different. Understanding each area’s characteristics and finding a property that truly fits your needs is much easier—and more reliable—when working with an agent who knows Tokyo well.

Lifestyle & Hobbies

Where Do You Want to Escape on Weekends?

Tokyo is surrounded by mountains, so by traveling just a short distance outside the city by car or train, you can enjoy the sea or the mountains even on a day trip. However, because Tokyo itself is so massive, crossing the city to reach the opposite side can be surprisingly time-consuming.

For this reason, your personal preferences—such as loving the ocean or wanting to go skiing almost every weekend in winter—can also become an important factor when deciding where to live.

  • Northern areas offer easy access to Chiba, where many golf courses are located. Chiba has also gained attention in recent years for second homes, such as in Katsuura, where you can enjoy a marine lifestyle. Access to Narita Airport is another advantage.
  • Southern areas provide easy access to Kanagawa, making weekend trips to Shonan, Hayama, Hakone, and Izu very convenient. These areas also offer easier access to the Tokaido Shinkansen without going all the way to Tokyo Station, making trips to Osaka and Kyoto smoother. Proximity to Haneda Airport is another benefit.
  • Western areas offer good access to Nagano and popular resort areas such as Karuizawa, , making them a great choice for snow sports lovers.
  • Central Tokyo provides easy access to expressways, making weekend escapes to the suburbs manageable. Dining and shopping options are unmatched, making it ideal for those who enjoy eating out. Some central business areas can feel surprisingly quiet on weekends, which I personally enjoy.

Disaster Preparedness & Safety

Tokyo is very safe, but there is also the reality that we must always be prepared for natural disasters.

Things I check with clients include:

  • Flood and earthquake hazard maps
  • Building age and compliance with current earthquake resistance standards
  • Whether the property is in a low-lying or reclaimed area

Even if a building meets modern earthquake standards, properties on soft ground or in flood-prone areas can be more vulnerable.

  • Tokyo has many rivers, and river-adjacent areas often have softer ground. In addition, many waterfront areas are built on reclaimed land. While these areas are engineered with this in mind and are not automatically dangerous, they are sometimes avoided from a ground-condition perspective. That said, riverside and waterfront properties often offer excellent views.
  • While walking through the city, you may sometimes notice pleasant greenways that are ideal for walking and enjoying the surroundings. Greenways were typically built over former rivers, meaning the ground in these areas is also considered relatively weak.
  • Older neighborhoods may have very narrow, unplanned streets where emergency vehicles have difficulty accessing properties. In addition, such areas often have dense clusters of older wooden houses, which can increase fire risk and make firefighting more difficult.

(Disaster preparedness will be explained in more detail in a separate article.)

One more Tip

As mentioned, Tokyo is also a city with many hills. Areas with names including “-dai” or “-yama” are often on higher ground and tend to be desirable residential neighborhoods.

If You Want to Keep Rent Low

Tokyo’s borders are lined by rivers such as the Tama River and Arakawa. Simply crossing into neighboring prefectures like Kanagawa, Saitama, or Chiba often results in noticeably lower rent.

While crossing rivers by car can be inconvenient due to bridge access, by train it’s often just one or two stops away, with little loss of convenience. These areas also tend to have more affordable shops and lower overall living costs compared to central Tokyo.

My Personal Recommendations

My clients often ask, “So where is actually good to live?”
Tokyo has so many interesting and wonderful neighborhoods that narrowing it down to just a few is truly difficult. That said, I’d like to share the areas I personally recommend most.

Hiroo

A rare balance of convenience, livability, and greenery. If you want to actively enjoy Tokyo, living closer to the city center is often more practical. While Hiroo is known as an expensive area, it also has many older buildings, and depending on conditions, you can sometimes find surprisingly reasonable options.

Ebisu

The neighboring station between Hiroo and Shibuya. With access to both the Hibiya Line and JR Yamanote Line, it is actually more convenient than Hiroo in some ways. It offers large station buildings, refined complexes like Ebisu Garden Place, and many local restaurants. Despite being just one stop from Shibuya, it remains calm and mature. Daikanyama is within walking distance, making it one of my top recommendations for living alone in Tokyo.

Sakurashinmachi

A quiet residential area slightly outside the city center. The station area features a large, well-organized shopping street lined with cherry trees—quite rare in Tokyo. Komazawa Park is within cycling distance. Although the Den-en-toshi Line can be crowded, access to Shibuya is excellent, offering a balance of calm living and convenience.

Musashi-Koyama

A unique blend of strong local character and modern redevelopment. Just four minutes from Meguro Station on the Meguro Line, it features a lively covered shopping arcade full of traditional local shops. At the same time, ongoing redevelopment has added a modern touch. One Italian client once described Musashi-Koyama as “the Venice of Tokyo” (though I can’t fully confirm that!). The large Rinshi-no-Mori Park is also nearby.

Finding a Home That Truly Fits Your Life

Photos and online listings don’t tell the full story. The most popular area is not always the best for you. Choosing a home in Tokyo is about aligning your priorities with the realities of the city.

If you’re unsure where to start, feel free to reach out

As a Tokyo native and an independent real estate agent, I work across all areas of Tokyo and the surrounding regions, without being limited to specific locations or listings. I do not have to prioritize company interests, and I always act in my clients’ best interests.

I take the time to understand your priorities and circumstances, help you narrow down the areas and properties that best fit your needs, and guide you through the process with practical, local insight.

Beyond home searching, I also support clients with other relocation-related challenges that come with moving in Japan, helping you avoid common pitfalls and settle in with confidence.

The consultation is completely free, so please feel free to reach out.

Here are some related articles that may help you take the next step.

Setting Up a Home in Japan: What You Should Know Before You Move

In Japan, whether you rent or buy a property, it usually comes completely unfurnished — not only without furniture, but often without basic appliances such as a refrigerator, washing machine, or even lighting fixtures.
This can be a big surprise for many newcomers. Once you decide to move to Japan, one of the biggest questions becomes:
“How do I actually start my life once I get there?”

Most people start by renting first. However, even renting can take time — once you arrive in Japan, you’ll need to search for a property, apply, sign a contract, and set up your daily essentials, which, often takes at least two to three weeks or more optimistically before your new home is truly ready.

During this transition period, you’ll likely need to stay somewhere temporarily such as a hotel, or a furnished serviced apartment. While these are convenient, they can be expensive and may not feel like home. You might start thinking, “If I’m going to spend that much, I’d rather put it toward furniture for my own place.”

On top of that, moving involves numerous tasks, adjusting to a new country, handling government paperwork, starting a new job, and house-hunting all at once. It’s easy to feel overwhelmed.

How to Buy Furniture in Japan: A Complete Guide for New Expats

To help reduce stress, I offer services that allow you to search for a home while still abroad, and even have it move-in ready before your arrival — including setup, furniture purchasing, and utility arrangements. However, in this article, I’ll focus on how and where to buy furniture yourself in Japan.

Just like in other countries, most furniture and appliances can be purchased online, but because these are large items, many people prefer to see them in person before deciding.
Even when ordering online, keep in mind that delivery may take several weeks depending on stock and location.

Start with the Basics — What You Really Need

As mentioned above, most homes in Japan are unfurnished, so you’ll likely need at least:


• A bed or futon
• Basic appliances such as a refrigerator, microwave, and lightings
• Furniture
• Curtains (yes, even these are often not included!)

Measure your rooms carefully. Japanese homes are typically compact, and furniture sizes differ from Western standards.

🎌 Yay! Your first encounter with Japanese culture — futons!
A futon is Japan’s traditional bedding, laid directly on the floor and folded away during the day to save space. It’s practical for small apartments, and airing it outside keeps it fresh in Japan’s humid climate. While fewer people use futons today, they remain a charming way to experience traditional Japanese living.

Washing machines range widely in price, from around ¥50,000 for compact models to over ¥300,000 for advanced ones. However, Tokyo now has modern, stylish coin laundries that are clean, efficient, and convenient, which are great options for singles and couples who only need to wash once or twice a week.

Where to Buy Furniture in Japan

There are a bunch of stores, so here are just a few examples to get you started. Pick what fits your budget and lifestyle.

Affordable & Easy

Nitori – Japan’s equivalent of IKEA, with furniture sized for Japanese homes. Affordable, functional, with online ordering and delivery services.
IKEA Japan – Great when you can’t find stylish yet affordable designs elsewhere. Just note that some pieces are large for Japanese apartments, and most stores are in the suburbs.
Shimachu Homes – Local chain offering furniture and home goods with setup services.

Mid-Range to Stylish

  • IDC Otsuka / Francfranc / Actus / Karimoku – Trendy, urban styles perfect for city apartments.

IDC Otsuka offers large showrooms where you can take your time exploring a wide range of furniture.

  • Muji (無印良品) – Minimalist, practical, and beautifully designed Japanese furniture.

Second-Hand & Sustainable

Hard Off / Off House – Reliable used furniture and appliances in great condition.
Facebook Marketplace / Sayonara Sales – Expats leaving Japan often sell items cheaply or even give them away — great deals if timing is right.

Independent & Designer Stores

Tokyo is full of characterful furniture stores — from world-famous brands like Cassina and Herman Miller to boutique shops and antiques.
For furniture lovers, visiting Tokyo’s Meguro-dōri (“Furniture Street”), which has over 30 interior shops, is a real treat.

Beds & Mattresses in Japan

Japan doesn’t have as many mattress-only superstores as other countries, but you can try high-quality options like:


• Showrooms of international brands: Sealy, Ligne Roset, Tempur
• Department-style retailers: IDC Otsuka
• Specialty bedding stores: France Bed and Nishikawa

Japanese mattresses tend to be thinner and smaller, not necessarily less comfortable, just different.
If you choose a Japanese brand, make sure the size matches your body and sleeping preference. Always check dimensions before purchasing.

Other Essentials

Even if some rooms have blinds, curtains are rarely included. You can get ready-made curtains from Nitori, Aeon, or Muji, or order custom ones for a better fit.
As for kitchenware and small essentials, Nitori, Muji, and Aeon offer convenient one-stop shopping.
If you love tableware, exploring Japanese ceramics and local pottery can be a fun way to personalize your dining table.

Appliances — Where to Buy

Large retailers like Bic Camera and Yamada Denki carry almost everything, with knowledgeable staff and solid after-sales support.
In major city stores, you’ll often find staff who speak English, Chinese, or other languages. 

When buying in-store, check prices online first and don’t hesitate to negotiate. You can often get a discount if you show a cheaper listing elsewhere.

You can also order online via Amazon Japan, Rakuten, or price comparison sites like Kakaku.com. If buying from non-major retailers, confirm warranty and support details first.

Don’t forget to buy lighting fixtures, as many homes have ceiling sockets but no main light included.

Delivery & Assembly — What to Expect

Most stores offer delivery and assembly for a small fee. Apartments without elevators or with narrow stairs may incur extra costs.
Even professional movers can make small mistakes, so it’s best to be present during delivery — not only to open the door, but also to ensure no damage occurs.
This is especially important for rentals, since any scratches or dents may affect your security deposit.

Need a Hand?

Shopping in an unfamiliar country can be challenging.
I offer store-accompaniment and proxy purchasing services, so you can communicate easily with staff and enjoy stress-free, efficient shopping.
Clients often tell me it made the experience both fun and smooth.

Utilities & Appliances

Your home won’t function until electricity, gas, and water are connected.
Most can be arranged online in advance — you don’t need to be home for electricity or water, but gas setup requires you to be present for a safety check.

Japan’s energy market is now liberalized, so you can choose from many providers.
If you’re unsure, in Tokyo you can’t go wrong with Tokyo Electric Power (TEPCO) or Tokyo Gas — the difference between companies lies mostly in pricing and service.

Also note: Japan uses 100V two-prong Type A outlets, the same plug shape as in the U.S. but with slightly lower voltage, so check appliance compatibility.

Internet Options in Tokyo Apartments

You have several options — from pre-installed internet to plug-and-play routers:

There are multiple ways to get connected, from pre-installed building internet to carrier Wi-Fi routers. Watch contract terms and cancellation fees.

1) Pre-Installed Internet

Many modern apartments include building-contract internet. Plug in your router or use the provided login.

  • Pros: Ready on move-in / no installation / often included or low fee
  • Cons: You can’t choose the provider freely (though you can sign a separate plan), and speeds may slow during peak hours.

Common examples: NTT FLET’S Hikari (bulk), J:COM NET (cable)

2) Fiber-Optic Internet (Hikari Kaisen)

Fastest and most stable; ideal for long-term residents and remote work. (1–2 Gbps)

Recommended providers:

  • NTT Hikari (FLET’S Hikari) – Backbone fiber service used by many ISPs
  • Asahi Net – Reliable, English support, flexible plans
  • Docomo Hikari – Great if you already use Docomo mobile
  • SoftBank Hikari – Bundled discounts for SoftBank users
  • Sakura Fiber Internet – Popular with expats; full English service

💡 Installation typically takes 2–4 weeks.

3) Cable-TV-Based Internet

J:COM / ITSCOM use cable TV infrastructure; bundle with TV/phone. Speeds ~320 Mbps to 1 Gbps and often quick to start since wiring already exists.

4) Home Wi-Fi Routers (No Installation)

Plug-and-play 4G/5G routers such as SoftBank Air, Rakuten Turbo 5G, and AU Home Wi-Fi 5G Box.
Great for renters who can’t install fiber or need a temporary solution before a permanent setup.

How My Home Setup Support Service Works

Feeling overwhelmed with too many things to do? No worries. Consider using my Home Setting Service. Before your lease starts, I can help measure your rooms, suggest stores and products that match your taste and budget, and arrange purchase, delivery, and installation — so your home is ready when you arrive. I can also help you handle the necessary paperwork once you arrive in Japan.

✈If You’d Like to Move In as Soon as You Arrive in Japan

I can assist you in completing the entire process, from property viewing to signing the contract, fully online before you come to Japan.

Once the contract is finalized, I will visit your new home on your behalf to take measurements and, if needed, suggest suitable furniture and appliances.
After you’ve made your selections, I can also take care of purchasing and receiving your furniture, and be present for the delivery and setup, so your home is ready before you arrive.

(Please note: delivery times vary depending on the product and timing, so not all items may arrive before your arrival. If essential furniture such as a bed cannot be delivered in time, I can arrange temporary furniture rental and attend the delivery on your behalf.)

I also handle utility setup, arranging for water, electricity, and gas to be connected. Sincegas activation requires an in-person appointment, I can attend on your behalf as well.

🗾If You’re in Japan and Ready to Set Up Your New Life

If you’re already in Japan, I can assist with:

  • Attending large furniture deliveries with you, or on your behalf
  • Accompanying you on shopping trips for furniture, appliances
  • Assisting with custom-made items, such as curtains or other furnishings
  • Providing support with product selection and communication with store staff…etc.

🛍Making the Most of Your Shopping Experience

To make your shopping experience truly satisfying, the key is to first visit stores that match your taste and budget, and then build good communication with the staff.
In a country where English is not the first language, this can sometimes be challenging.
From recommending the right stores and handling communication or negotiation with staff, to ensuring you find items that genuinely fit your lifestyle, taste and budget, I’ll support you in making confident and enjoyable purchases.

My services are generally charged by the hour. I provide customized estimates depending on your specific needs.
You can request only the services you require, and I’m happy to tailor my support to your needs.
Please note that availability may vary depending on my schedule.

Let’s Make Your Move to Japan Comfortable and Fun

Each topic here, furniture, beds, appliances, internet, utilities, could be a full article on its own.
Setting up a home in Japan can be both exciting and overwhelming, but with good preparation and local support, your transition can be smooth and enjoyable.

My goal is to make your relocation and home setup in Japan as smooth and stress-free as possible.
Even if you only need help with part of the process, please feel free to reach out — I’d be delighted to assist.
Let’s make your move to Japan comfortable, efficient, and stress-free, so you can truly feel at home from day one.

A Complete, Updated Guide with Trends, Costs, and Buying Steps for Foreigners Buying Properties in Japan

1. Japan’s Real Estate Market Continues to Attract Global Investors

Japan has long been one of the most attractive real estate markets in Asia, known for its economic stability, clear legal system, and world-class infrastructure.
In recent years, its appeal has grown even further — driven by steady economic recovery, the perception that Japanese property remains relatively affordable compared with other major global cities, and the weakened yen, which makes assets in Japan even more enticing for foreign investors.

According to CBRE’s Japan Investment Market Report (2024), foreign investors accounted for roughly 30% of all property transactions in Japan, up from about 24% before the pandemic.
A March 2025 survey by Mitsubishi UFJ Trust and Banking Corporation found that in Tokyo’s 23 wards, between 20% and 40% of newly built condominium units were purchased by foreign buyers — including individuals, institutional funds, and high-net-worth investors (HNWIs).

This international interest reflects Japan’s strong fundamentals: stable prices, low interest rates, high-quality infrastructure, and a safe, comfortable living environment.

2. Rising Concerns and Potential Regulations Ahead

Japan’s growing foreign demand has sparked debate that it may be contributing to rising real estate prices, particularly in central Tokyo and Kyoto.

Countries such as Singapore, South Korea, Canada, China, and more recently Australia have all introduced strict regulations limiting or prohibiting property purchases by foreign nationals.
In contrast, Japan currently allows foreigners to freely buy real estate, whether for residential or investment purposes, without any visa or residency requirement.
This open policy is one reason Japan continues to attract overseas investors seeking both stable returns and lifestyle benefits.

However, as international scrutiny grows and housing affordability becomes a public concern, Japan may eventually follow the trend of tightening rules.
Indeed, the October 2025 revision of the Business Manager Visa requirements signals a more cautious stance toward inbound investment overall.

For now, foreigners can still purchase and own property in Japan with few restrictions, but staying informed about future policy shifts is increasingly important.

3. Step-by-Step Guide: How to Buy Real Estate in Japan as a Foreigner

The buying process depends on whether you are purchasing a new development (sold in lots) or a pre-owned property (through a brokerage).

3.1 How to Find a Property in Japan

Foreign buyers in Japan typically follow a similar process, whether purchasing a newly built condominium (from a developer) or a pre-owned property (through a brokerage).
While transaction channels differ slightly, the overall flow remains largely the same.

Step 1: Find a Property and Choose an Agent

Properties in Japan can be found through:

  • Online listing sites such as SUUMO, Realestate Japan, or At Home
  • Newspaper or magazine advertisements
  • Licensed local real estate agents

Japan operates a mandatory listing system called REINS, a database that all licensed real estate agents can access.
This ensures transparency—every agent sees the same listings.
However, negotiation skills, communication quality, and responsiveness differ greatly between agents, so selecting a proactive one can make a big difference.

Step 2: View the Property and Plan Your Finances

Once you’ve identified promising properties, schedule viewings.
Agents can arrange both in-person and virtual tours.
During this stage, you’ll also plan your financing—especially important if you intend to apply for a mortgage (though, as explained later, foreign buyers without residence in Japan often need to purchase in cash).

Step 3: Make an Offer

If you wish to buy, you’ll submit a written purchase offer.
For new developments, this is usually done directly with the developer; for resale properties, it’s submitted through your broker.

Step 4: Legal Explanation and Contract

Before signing, the agent or developer must provide a legally required document called the Explanation of Important Matters (Jūyō jikō setsumeisho).
This outlines ownership rights, property conditions, taxes, and any potential risks.

After reviewing and accepting the terms, you’ll sign a sales contract and pay a deposit (Tetsuke-kin), usually 10–20% of the purchase price.

Step 5: Mortgage Screening (if applicable)

Buyers seeking financing must undergo bank and guarantor company screening.
This process can take from a few days to several weeks, depending on your visa status and income source.

Step 6: Final Payment, Handover, and Registration

After final payment, ownership is officially transferred.
A Judicial Scrivener (Shihō Shoshi) usually handles the registration process at the Legal Affairs Bureau to ensure legal accuracy as explained further below.
Once registration is complete, you’ll receive your title deed and keys.

Tip: Japan’s registration system is transparent and secure, protecting both local and foreign buyers.

4. Financing: Can Foreigners Get a Loan in Japan?

Japan’s low interest rates (typically 0.5–2%) are appealing, and I often receive inquiries from clients asking whether foreign buyers can obtain local financing.
Unfortunately, in practice, foreigners without a long-term base in Japan rarely qualify for such mortgages.

Most Japanese lenders require:

  • Long-term visa or residence status
  • Stable domestic income and tax record
  • A Japanese bank account

While other factors matter, the most fundamental requirement is to have a long-term residence status and a stable living base in Japan.
Without these, Japanese banks generally do not lend to foreign buyers.

In practice:
Foreign investors who live overseas and have no Japanese base almost always purchase properties in cash, which is standard in Japan’s market.

5. Real Estate Broker Commissions

Under the Building Lots and Buildings Transaction Business Act, brokerage commissions are legally capped as follows:

Property PriceMaximum Commission (before tax)
Up to ¥2 million5% of sale price
¥2–4 million4% of sale price + ¥20,000
Over ¥4 million3% of sale price + ¥60,000

In most cases, you only pay your own agent’s commission, not the seller’s agent.
Each party compensates their own respective broker.
This differs from markets such as the United States, where sellers typically pay the total commission that is split between both agents.

6. Judicial Scrivener (Shihō Shoshi) and Registration Costs

Technically, buyers can register the property themselves, but the process is highly specialized, and Judicial Scriveners play a crucial role in ensuring the accuracy and safety of the transaction.
For this reason, even Japanese nationals almost always hire a Judicial Scrivener to handle registration.

  • Average scrivener fee: ¥50,000–¥150,000 (≈ USD 330–990)
  • Registration license tax: about 0.4–2% of assessed value
  • Administrative & stamp fees: several thousand yen

Example:
For a ¥50 million apartment, expect total registration-related expenses of ¥200,000–¥450,000 (≈ USD 1,300–3,000), depending on complexity.

7. Real Estate Acquisition Tax (Fudōsan Shutokuzei)

This is a one-time local tax due after purchase.

Property TypeTax Rate
Land3% (temporary reduction from 4%)
Buildings3% (for standard residential)

Example:
A condominium assessed at ¥40 million incurs roughly ¥1.2 million (≈ USD 8,000) in acquisition tax.
Tax reductions may apply for residential use under a certain condition.

8. Ongoing Ownership and Maintenance Costs

Owning real estate in Japan involves several annual expenses.
The following are reference ranges only — actual amounts vary by location, property age, and management structure.

Expense TypeTypical RangeDescription
Fixed Asset Tax~1.4% of assessed valuePaid yearly to the local government
City Planning Tax0.3% of assessed valueApplies in designated city zones
Condominium Management Fee¥10,000–¥30,000/month (≈ USD 65–200)Common-area maintenance, cleaning, and security
Repair Reserve Fund¥10,000–¥20,000/month (≈ USD 65–130)Long-term building repair and renewal
Fire / Earthquake Insurance¥10,000–¥30,000/yearStrongly recommended
Property Management Company (optional)5–10% of rentIf leasing to tenants

Note: These figures are for reference only. Actual costs depend on the property and local tax rates.

9. Final Thoughts

Japan’s real estate market remains strong, transparent, and globally appealing, supported by a stable legal framework and solid economic fundamentals.
However, as policies evolve, such as the October 2025 tightening of Business Manager Visa requirements, the degree of openness to foreign buyers may gradually change.

If you are considering investing in or purchasing property in Japan, it is highly recommended to seek professional guidance from experts familiar with both Japanese regulations and international investment practices.
Feel free to contact me for consultation. I can help you navigate the process smoothly and make informed decisions in Japan’s evolving real estate landscape.


Disclaimer:
This article is based on information available at the time of writing and is intended for general informational purposes only.
It does not guarantee accuracy or completeness. Please consult qualified professionals for up-to-date legal, financial, or tax advice.