Short answers to common questions about buying a resale condo in Tokyo’s 23 wards. Figures come from this site’s data and official pages.
What income do you need to buy a resale condo in Tokyo’s 23 wards?
The median price of resale condos sold in the 23 wards in the last 12 months is ¥59.0M. With a 10% down payment, 35 years at today’s variable rate and payments at 25% of income, you would need a household income of about ¥8.1M; for a 3LDK (median ¥77.0M), about ¥10.5M. It varies widely by ward; see the quick guide by income or the calculator.
What is the difference between what a bank will lend and what you can comfortably repay?
A bank’s limit does not consider how much room your budget needs. For example, Flat 35 allows total loan payments of up to 35% of income for incomes of ¥4 million or more. This site uses 25% by default, with the average for actual resale condo buyers (about 17% of income) as a reference. The more you borrow, the less room you have for education, retirement and rate rises.
For a working couple, is a pair loan or combined income better?
It depends on the household. With a pair loan both are insured and can claim the tax deduction, but fees and registration are charged for two loans. With combined income as a guarantor, only the borrower can claim the deduction. See the comparison table, and consider whether you could repay if one income falls.
How much down payment do I need, and when is cash needed?
The mortgage is paid out at handover, so the deposit at the sales contract comes from your own money. Most purchase costs (7% of the price in this site’s calculations) are also paid in cash. Calculate each item and when it is paid on the costs page.
How do monthly costs after buying compare with my rent?
Enter your rent under the calculator’s assumptions on the income calculator. It compares your rent with the mortgage plus estimated management and repair fees, and shows the price you could reach with the same monthly outlay. Fixed asset tax and future repair fund increases are extra.
How old is too old? What is the old earthquake standard?
Buildings whose building permit was issued before June 1, 1981 follow the old earthquake standard. In the 23 wards, homes built in 1981 or earlier sell for about 40% less per m² than those built from 1982. Old-standard homes may not qualify for some mortgages or the mortgage tax deduction (tax rules accept buildings registered as built on or after January 1, 1982). Rather than age alone, check the permit date, any seismic diagnosis, and management and repairs.
Why is the registered floor area different from the listing?
The register records a condo’s inner area (measured from the inside of the walls), which is smaller than the wall-center area. The mortgage tax deduction (50 m² or more, or 40 m² with income of ¥10M or less) and reduced registration tax (50 m² or more) use the registered area, so check the register for homes close to the limit.
Should I choose a variable or fixed rate?
Which is cheaper depends on future rates and cannot be known in advance. In a Japan Housing Finance Agency survey, 75% of people who took a mortgage in April–September 2025 chose a variable rate. If you choose variable, check on the rate-rise page that you could still pay if rates rise sharply; if not, consider a fixed rate.
When does a Bank of Japan rate hike change my payments?
It depends on the bank and contract. With twice-yearly reviews and the 5-year rule, the June 2026 hike raises interest from the January 2027 payment, but the payment itself usually stays the same until the 5-year review. At banks without the 5-year rule, the payment rises. See examples of timing.
Is now a good time to buy? Will prices fall?
This site does not forecast prices. What we know: the price per m² in the 23 wards is 10.6% higher than in the 12 months before the rate hikes, and government sale data does not yet reflect the June 2026 hike. Rather than timing the market, choose a home you can keep paying for even if rates rise.
Why are the figures six months old?
Government sale price data is published about six months after the sales. For recent trends, check REINS East Japan’s monthly statistics or asking prices on listing sites. We update when a new quarter is published and record it on the updates page.
How much can the mortgage tax deduction give back?
For resale homes moved into in 2026–2030, you can deduct 0.7% of the year-end loan balance (counted up to ¥20 million without an energy certificate) for 10 years (13 years with a certificate), up to the taxes you pay. Estimate it from your loan amount.
Can I use the mortgage tax deduction if I sell my current home and buy another?
If you use tax breaks on selling your home (such as the ¥30 million special deduction or the replacement special provision) in the move-in year, the 2 years before or the 3 years after, you cannot claim the mortgage tax deduction. Which is better depends on the amounts, so ask a tax office or tax accountant.
What is the difference between asking and sale prices? Can I negotiate?
The asking price is set by the seller; the sale price is what the home actually sold for after negotiation. This site uses sale prices. Whether you can negotiate depends on the home, but comparing with similar sales in Price check gives you a basis.
How much is fixed asset tax?
Whoever owns the home on January 1 pays fixed asset tax (1.4%) and city planning tax (0.3%) based on assessed values, with reductions for residential land. Amounts differ by home, so ask the seller or agent for last year’s amount before buying.
Can foreign nationals get a mortgage?
Flat 35 and MUFG Bank’s housing loan require Japanese nationality or permanent residency. Some banks accept applicants without permanent residency, with conditions on income and down payment. See the buying guide.
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.