Buying a resale condo in Tokyo: steps, costs and what foreign buyers should know
What happens when you buy a resale condo in Tokyo, in order, and which pages of this site help at each step. The section for foreign buyers covers mortgages, reports and documents.
Buying steps
Based on the example flow published by MLIT, with the pages of this site that help at each step.
Set your budget
Estimate a comfortable loan amount and price from your income. Banks may approve more, but monthly payments get heavier. Couples should also decide how to borrow together (see the table below).
Check whether the price is high or low compared with similar homes that sold. Also check the earthquake standard, registered floor area, and management and repair plans.
You usually make an offer through the agent and get a pre-approval from a lender. Any application deposit must be returned if you withdraw before the contract.
Explanation of important matters and sales contract
After full approval, you sign the loan contract. Many banks require group credit life insurance. The Flat 35 rate is the rate when the money is paid out, not when you apply.
To claim the mortgage tax deduction, move in within 6 months of purchase. A real estate acquisition tax notice may arrive a few months later, and you file a tax return the following year.
Which methods are offered, and how much income can be combined, differ by lender. Consider whether you could still repay if one income falls (childbirth, childcare, job change). Sources: National Tax Agency、Japan Housing Finance Agency、MUFG Bank (checked September 15, 2026).
For foreign buyers: what is different
Can foreigners buy property in Japan?
Yes. No law generally restricts foreign nationals or non-residents from buying land or buildings (Cabinet Secretariat material). The Important Land Survey Act does not regulate transactions; a prior notification is needed only in designated Special Monitored Areas and, for condos, only for large units (200 m² or more of exclusive area or site share) (Cabinet Office FAQ). The government is discussing new rules on land purchases, but as of September 15, 2026, nothing has been enacted.
Japan’s statuses of residence are based on activities (such as work) or personal status (such as permanent resident or spouse); none is based on owning property (Immigration Services Agency). For visa questions, contact the ISA Information Center.
Can you get a mortgage?
It depends mainly on your residency status. Both default rates used on this site come from loans that require Japanese nationality or permanent residency.
Living in Japan with a status of residence without work restrictions; reads and writes Japanese
At least 20% of the price from own funds; term up to 15 years; higher rate
Conditions as stated on each official page (checked September 15, 2026). We did not find a home loan for owner-occupiers that is open to non-residents. Lenders that accept applicants without permanent residency may require a larger down payment or shorter term, so adjust the down payment and payoff age in the calculator.
Reports and registration (2026 changes)
Non-residents must report purchases. From April 1, 2026, a non-resident who acquires real estate in Japan must report it to the Minister of Finance through the Bank of Japan within 20 days, even a home for their own use (Ministry of Finance). A foreign national who works in Japan or has been in Japan for 6 months or more is generally treated as a resident.
Nationality at registration. From October 5, 2026, individuals applying to register ownership must provide their nationality (Japanese nationals included). It is not shown on the public register (Ministry of Justice).
Documents
Registration usually needs proof of address such as your certificate of residence (住民票) or residence card. If you also take out a mortgage, a seal certificate is generally needed; people without a registered seal or living abroad may use a signature certificate (Ministry of Justice). Confirm the exact documents with the judicial scrivener.
Land rights: ownership or leasehold
With a condo you own your unit plus a right to use the land. The land right may be ownership (所有権) or a leasehold (借地権); a fixed-term leasehold (定期借地権) lasts 50 years or more with no renewal. The agent must explain the type in the explanation of important matters. Some lenders do not accept leasehold properties.
Check opening hours on each official page (checked September 15, 2026).
Actual sale price (成約価格)
The price at which a sale was actually agreed. It is different from the asking price shown in listings, because it reflects price negotiations. The prices on this site are based on actual sale prices published by Japan’s Ministry of Land, Infrastructure, Transport and Tourism (MLIT).
The middle value when all prices are lined up from lowest to highest. It is less affected by a few very expensive homes than the average, so we use it as a guide to a “typical” price.
The price divided by the floor area in square meters (m²). It lets you compare homes of different sizes. For example, a 70 m² home sold for ¥70 million costs ¥1 million per m². In Japan this is often written as ㎡単価.
When the prices of similar homes are lined up from lowest to highest, this is the range covered by the middle half. A price far outside this range may have a reason, such as the floor level or a renovation.
The government publishes actual sale prices about six months after the sales. Recent changes in interest rates or the market may not yet show up in the figures.
The network real estate agents in Japan use to share property information. The actual sale prices published by the government are based on sales registered in REINS.
The policy rate is the short-term interest rate set by the Bank of Japan (BOJ), which influences other interest rates. Raising it is called a rate hike. After a hike, variable mortgage rates tend to rise.
An interest rate that is reviewed after you borrow, following market rates. It is currently lower than fixed rates, but your payments can increase when rates rise.
Money you pay on top of the property price, such as the agent’s brokerage fee, registration costs, loan fees and taxes. This site assumes they are 7% of the price.
The share of your annual income that goes to mortgage payments. For example, 25% of a ¥7 million income is ¥1.75 million a year, or about ¥146,000 a month. In a government survey, households that bought a resale condo spent 17.0% on average.
An estimate of how much you could borrow without straining your budget, based on the share of income you put toward repayments (25% by default on this site), the interest rate and the loan term. A bank may approve a larger loan, but the more you borrow, the heavier the monthly payments. The actual amount is decided by the lender’s review.
To check that you could keep paying if rates rise, banks may calculate your payments at a “screening rate” higher than the actual rate. Buyers usually get a pre-approval around the time they apply to buy, and a full review after signing the sales contract.
Short-term prime rate and base rate (短期プライムレート・基準金利)
The short-term prime rate is what banks charge creditworthy companies for loans under one year. The base rate behind most variable-rate mortgages moves with it. The rate you actually pay is the base rate minus the bank’s discount.
Insurance that pays off the remaining mortgage if the borrower dies or reaches a specified severe disability. Private banks usually require it, and some people cannot join because of their health.
Ways for a couple to borrow together. With a pair loan, each person takes out their own loan. With combined income, one loan uses both incomes, as either joint debtors or with one person as guarantor. Who can join the group credit life insurance and who can claim the mortgage tax deduction depends on the method.
Common features of variable-rate mortgages in Japan. Even if rates rise, your monthly payment stays the same for five years (5-year rule), and when it is reset every five years, it can rise to at most 1.25 times the previous payment (125% rule). This prevents sudden jumps, but you pay interest for longer.
Money owners save every month for major future repairs, such as repainting the exterior, waterproofing the roof and replacing pipes. It is often raised as the building ages.
Floor area can be measured from the center of the walls (wall-center area) or from the inside of the walls (inner area). The area on the property register for a condo is the inner area, which is smaller. Sales floor plans sometimes show the wall-center area. The floor-area requirements for the mortgage tax deduction (50 m² or more, or 40 m² or more if total income is ¥10 million or less) and for the lower registration tax (50 m² or more) use the registered area.
Japan’s building earthquake standard changed on June 1, 1981; buildings whose building permit was issued before then follow the old standard. Where the line is drawn differs by program: tax breaks such as the mortgage tax deduction accept buildings registered as built on or after January 1, 1982 without proof of earthquake resistance. Old-standard homes may not qualify for some mortgages or tax breaks, so check before buying.
Management rules and long-term repair plan (管理規約・長期修繕計画)
The management rules set how residents use and manage the building, including rules on pets and renovations. The long-term repair plan shows when major repairs will happen and what they will cost, which helps you judge whether the repair reserve fund is enough. Ask to see both before buying.
The floor area of all floors of the building added together. It shows the size of the building and is used to choose the guideline amount for the repair reserve fund.
The number of rooms plus a living room (L), dining area (D) and kitchen (K). A 3LDK has three rooms and a living-dining-kitchen. “+S” means it also has a small storage room (service room).
Before the sales contract, a licensed real estate transaction specialist must give you a document and explain key points such as rights to the property, legal restrictions, fees and repair plans. This is required by law. Ask about anything unclear before signing.
Money the buyer pays the seller when signing the sales contract; it later becomes part of the price. The amount is set in the contract, but when the seller is a real estate company, the law caps it at 20% of the price. It is usually paid in cash.
A promise that if your mortgage is not approved, the sales contract is cancelled and your deposit is returned. Check that the contract includes it and by when the loan decision must come.
The fee paid to the real estate company that arranged the sale. The law sets a maximum: for properties over ¥4 million, it is 3% of the price plus ¥60,000, plus consumption tax.
The procedure for recording a change of ownership, or the mortgage on the property, in the Legal Affairs Bureau’s register. Registration tax is charged, with lower rates for homes you live in. A judicial scrivener usually handles it.
A one-time prefectural tax on buying land or a building. For a resale home you live in, it can be greatly reduced depending on when the building was built and its size, and sometimes nothing is due. A notice arrives from the metropolitan tax office a few months after purchase.
Fixed asset tax and city planning tax (固定資産税・都市計画税)
Annual taxes on whoever owns the land and building on January 1; in the 23 wards they are paid to the Tokyo Metropolitan Government. The amount differs by property, so ask the seller or agent for last year’s amount before buying. In a sale, they are often split by day at the handover date.
If you buy a home to live in with a mortgage, you can deduct 0.7% of the year-end loan balance from income tax (and part of resident tax if income tax is not enough) for a set number of years. Conditions include the registered floor area (50 m² or more, or 40 m² or more if total income is ¥10 million or less), income and earthquake resistance, and you must file a tax return for the first year.
An inspection by a trained architect who visually checks a building for damage and defects. In resale home sales, the real estate company must explain whether such an inspection can be arranged.
Not your gross salary, but the total of your “income” after deductions such as the employment income deduction. It is used for income limits such as for the mortgage tax deduction. For an employee with salary only, the “amount after employment income deduction” on the withholding slip is a good guide.
Kinkyo means the parents’ and children’s households live near each other; dōkyo means living in the same home. Ward subsidies set their own rules, such as how near counts and how long the parents must have lived in the ward.
With a loan referral, the ward introduces a lender to make it easier to borrow for housing. With an interest subsidy, the ward pays part of the interest on the loan.
Insurance that pays for repairs if hidden defects, such as structural problems or leaks, are found after buying a resale home. The building must be inspected to join. For older buildings, it can serve as proof of earthquake resistance for the mortgage tax deduction.
Long-life quality housing and energy standards (長期優良住宅・省エネ基準)
Long-life quality housing is housing certified as meeting national standards for staying in good condition for a long time. ZEH-level and energy-efficiency standards cover insulation and energy performance; the mortgage tax deduction’s borrowing limit depends on them.