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Buying Property

Buying property in Tokyo
as a foreigner.

Foreigners can buy property in Japan with no restrictions — but the process is opaque, the contracts are in Japanese, and most agents work for the seller. Here is what you need to know.

Yes — foreigners can buy freely.
外国人の不動産購入

Japan imposes no restrictions on foreign ownership of real estate. Non-residents and non-citizens can purchase any type of property — apartments, houses, land — with full ownership rights and the ability to sell or rent freely.

What is complex is not the right to buy, but the process of buying: Japanese-language contracts, opaque transaction conventions, mortgage eligibility requirements, and an agency market where nearly every agent represents the seller — not you.

The key difference

In Japan, a single agent typically represents both buyer and seller in the same transaction. I work exclusively for buyers. My job is to negotiate the lowest price and best terms for you — not to close the deal quickly for the seller.

Purchase costs
取得費用の目安

On top of the purchase price, budget for the following acquisition costs.

Agency Commission 仲介手数料
3% + ¥60,000 + tax

The legal maximum. Paid to the buyer's agent (me) and/or seller's agent. In many transactions, the seller's agent covers their own commission — ask before assuming.

Registration Tax 登録免許税
~1–2% of assessed value

Paid to the government upon registration of ownership transfer. Assessed value (固定資産税評価額) is typically 60–70% of market price.

Acquisition Tax 不動産取得税
~3% of assessed value

One-time prefectural tax due within 60 days of purchase. Various deductions apply for residential properties.

Judicial Scrivener 司法書士報酬
¥100,000 – ¥200,000

Required for ownership registration. I coordinate with a bilingual scrivener on your behalf.

Stamp Duty 印紙税
¥10,000 – ¥60,000

Applied to the purchase contract. Amount varies by purchase price.

Home Loan Costs ローン諸費用
1–2% of loan amount

If financing: origination fees, mortgage registration tax, fire insurance. Varies by lender.

Total acquisition costs
~5–8% of purchase price

For a ¥100M property, budget ¥5M–¥8M in addition to the purchase price.

How a purchase works
購入の流れ
1
Weeks 1–2
Briefing & Search Strategy
We define your criteria: budget, area, purpose (own-use or investment), floor plan, building age preferences. I begin sourcing — including properties not listed on public portals.
2
Weeks 2–4
Property Viewings & Evaluation
I accompany every viewing and provide an institutional-level evaluation of each property: building management quality, repair reserve fund (修繕積立金) adequacy, structural history, and comparative pricing.
3
Week 4–5
Offer & Price Negotiation
I negotiate the purchase price and conditions directly in Japanese. As a USCPA and former PE fund asset manager, I bring financial rigour to pricing — not just intuition.
4
Week 5–6
Due Diligence & Contract Review
Full review of the Explanation of Important Matters (重要事項説明書) and purchase agreement — translated and explained clause by clause. I flag risks: leasehold land (借地権), outstanding repairs, litigation history, earthquake resistance certification.
5
Week 6–8
Financing (if applicable)
Mortgage eligibility for non-residents and non-permanent residents varies significantly by lender. I help you understand your options and coordinate with lenders who have track records with foreign buyers.
6
Week 8–10
Closing & Registration
Final payment, ownership registration, and key handover. I coordinate the judicial scrivener, confirm fund transfers, and stay with you through to completion.
What nobody tells you
知っておくべきこと
Most agents represent the seller

Japan's dual-agency norm means your agent is often also the listing agent. Their incentive is to close — not to negotiate hard for you. I represent buyers only.

Building age matters — but not always negatively

Japan's 1981 earthquake resistance standard (新耐震基準) is the key threshold. Pre-1981 buildings are not necessarily inferior, but require careful structural assessment and affect mortgage eligibility.

Repair reserve funds are a hidden risk

Many older condominiums are severely underfunded for major repairs. A ¥500,000 special assessment (一時金) after purchase is not uncommon. I review fund adequacy before you commit.

Mortgages for foreigners are possible

Permanent residents have broad access. Non-permanent residents can borrow from certain Japanese banks and foreign banks. Non-residents face more limited options — typically international banks or cash purchase.

New builds are not always the safe choice

New condominiums carry a developer premium of 15–25% over resale comparables. Liquidity is lower on exit. For investment purposes, well-selected resale in strong locations often outperforms.

Tax implications are significant

Rental income, capital gains, inheritance, and consumption tax treatment all vary by residency status, property use, and holding period. A tax accountant consultation before purchase is strongly recommended.

Yasuhiro's Note

"Tokyo's property market is one of the most liquid and transparent in Asia — but only if you know how to read it. The same institutional analytical approach I applied at a PE fund is what I bring to every client purchase."