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).
Median
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.
Price per square meter
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.
Typical price range
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.
Data lag
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.
REINS
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.
Rate hike / policy rate
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.
Variable rate (変動金利)
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.
Fixed rate (固定金利)
An interest rate that stays the same until the loan is repaid. It is usually higher than a variable rate, but your monthly payment does not change.
Flat 35 (フラット35)
A fixed-rate mortgage of up to 35 years, offered by private lenders in partnership with the Japan Housing Finance Agency (JHF).
Down payment (頭金)
The part of the purchase you pay with your own money instead of borrowing. A larger down payment means a smaller loan and lower monthly payments.
Purchase costs (諸費用)
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.
Repayment ratio (返済負担率)
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.
Comfortable loan amount
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.
Screening rate and pre-approval (審査金利・事前審査)
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.
Group credit life insurance (団信)
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.
Pair loan and combined income (ペアローン・収入合算)
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.
Level payments (元利均等返済)
A repayment method in which the combined principal and interest payment is the same every month. Most mortgages in Japan use it.
5-year rule and 125% rule
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.
Unpaid interest (未払利息)
Interest left over when rates rise so much that the monthly payment no longer covers the interest. It has to be paid later.
Management fee (管理費)
A monthly fee for cleaning and inspecting shared areas such as hallways and elevators, and for the management company.
Repair reserve fund (修繕積立金)
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.
Private floor area (専有面積)
The floor area inside the unit. It does not include shared areas such as balconies and hallways. It is shown on the sales floor plan.
Wall-center area vs. inner area (壁芯面積・内法面積)
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.
Old and new earthquake standards (旧耐震・新耐震)
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.
Total floor area of the building (延床面積)
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.
Layout (3LDK, +S)
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).
Explanation of important matters (重要事項説明)
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.
Deposit (手付金)
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.
Loan contingency clause (ローン特約)
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.
Brokerage fee (仲介手数料)
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.
Registration and registration tax (登記・登録免許税)
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.
Real estate acquisition tax (不動産取得税)
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.
Mortgage tax deduction (住宅ローン控除)
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.
Building inspection (インスペクション)
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.
Total income amount (合計所得金額)
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.
Living near or with parents (近居・同居)
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.
Loan referral and interest subsidy (融資あっせん・利子補給)
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.
Resale home defect insurance (既存住宅売買瑕疵保険)
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.