Buy an Apartment in Tokyo: Prices, Ownership and Costs for Foreigners

Central wards such as Minato, Chiyoda, Shibuya and Shinjuku have the highest prices and the best access to offices and nightlife. Meguro, Setagaya and Suginami are residential and quieter. Koto and Chuo, around Toyosu and Tsukishima, have waterfront towers popular with families. Edogawa and Adachi in the east have lower prices.

A key rule of thumb in Tokyo is that rail access matters more than the building: a short walk to a main station supports price and rental demand. Airports at Haneda and Narita are connected by rail and monorail. Earthquake resistance is vital; buildings approved after 1981 follow the new seismic code.

Japan has no general restriction on foreign ownership of land or buildings, and no residency requirement, although some sensitive areas have monitoring rules. Title is registered at the Legal Affairs Bureau. Costs usually include agent commission (up to around 3% plus tax), registration tax, real estate acquisition tax, stamp duty, and annual fixed asset and city planning tax. Condominiums also charge monthly management and repair-reserve fees that can rise as the building ages.

Non-residents struggle to obtain Japanese mortgages, so most buy with cash or a home-country loan. Rental income is taxed in Japan, which requires a tax representative if you live abroad. Our Japan buying guide, Japan financing guide and Japan market analysis provide more detail.

The usual sequence in Tokyo runs as follows.

1. Search and offer: you submit a purchase application (kaimōshikomi), often with a price negotiation.
2. Explanation of important matters: a licensed agent must give you a written and spoken explanation (jūyō-jikō-setsumei) before contract, ideally with an interpreter if you need one.
3. Contract and deposit: a deposit of around 5-10% is paid at signing.
4. Settlement: the balance is paid and a judicial scrivener registers the transfer.

The whole process takes about one to two months. Ask about the building's long-term repair plan, the reserve fund balance and any planned special levies. A building with a poorly funded reserve can face large future charges.

If Tokyo's prices are high, compare Osaka, Fukuoka, Yokohama, Sapporo, the ski village of Hirafu and Okinawa. The Japan hub lists all. Check budget Japanese property for the lowest-cost options, and use the mortgage calculator for planning.