The residential housing market in Tokyo has gotten a lot of media attention lately. Some analysts are saying that Tokyo’s “quiet housing boom” is over, while others see good prospects ahead. That is on the investment front.
In the meantime, consumer surveys (such as this one) indicate that many people think now is a good time to buy a house, as interest rates are at an historic low, and before the planned consumption tax increase in April 2017 from the current 8% to 10%.
(A friend of ours who is house hunting in Tokyo points out what many home buyers are thinking: 8% doesn’t matter when you are buying a pack of gum, but it makes a great deal of difference when you are buying a house. Our friend plans on buying well before next year). Update: since this article was originally posted, our friend has purchased a home over the summer.
We are not saying that “now” is the time to buy, but we wanted to take a look at what you could buy for a somewhat limited budget if you were house hunting now.
First, what is the average price of an apartment (condominium) or house in Tokyo?
According to REINS, the average price of a re-sale apartment sold in the greater Tokyo area in 2015 was 28,860,000 yen ($252,000). The average price in Tokyo (including the 23-wards plus the suburbs) is higher: 34,930,000 yen.
The average price of a re-sale detached house sold in the greater Tokyo area in 2015 was 30,110,000 yen. The average price in Tokyo was 42,940,000 yen.
The examples below assume a limited budget of about 28,600,000 yen (about $250,000 at today’s exchange rate). We provide examples of both apartments and detached single-family homes for various areas in the 23-wards and around Tokyo. Note that we limited the search criteria to the administrative boundaries of Tokyo.
You can get more house for your yen, the further out of the city you buy (i.e. Chiba, Saitma, and Kanagawa prefectures), but this post focuses on Tokyo, so we wanted to present representative of Tokyo homes.
Also, the examples below just consider the listing price, not any taxes or fees. For more information on taxes, please see Guide to Japanese real estate taxes.
Second, can a foreigner buy property in Japan?
Yes. You can buy property in Japan regardless of your nationality or country of origin. There are also no residency requirements for buying real estate in Japan. Securing financing as a resident foreigner is more complicated. For info on financing, please see “Basic Requirements for Getting a Mortgage as a Foreigner in Japan“.
What does “freehold” mean?
In Japan, ownership of property and land on which it sits are separate rights.
You will have either “freehold” or “leasehold” rights (indicated in the “Land Rights” category below).
Freehold: The more common and preferred type of land ownership is freehold. Freehold rights give you complete possession of the land on which your house or apartment sits. In the case of buying an apartment, each individual unit has a percentage of ownership of the land on which the building sits.
Leasehold: Leasehold rights mean that the owners of the building (and units, in the case of an apartment building) may sometimes be required to get the landowner’s approval before they can transfer ownership rights to the property or to sub-lease the apartment. Also, you must get the landowner’s permission before you rebuild the structure on the land.
What about financing?
Please see article for information on the basic requirements for getting a mortgage as a foreigner in Japan.
4-Bedroom House in Machida City
Where: Machida City (western suburb of Tokyo), 37-minute direct ride to Shibuya station on the Den-en-toshi line
Price: 25,000,000 yen ($218,000)
Size and Layout: 93.56 sqm (1,007 sqft) 4SLDK = 4 bedrooms and a storage room in addition to the living and dining room
Floors: Two
Land Area: 130.77 sqm (1,408 sqft)
Land rights: Freehold
Year Built: 1995
Structure: Wood
Parking: Available
4-Bedroom House in Setagaya Ward
Where: Setagaya Ward, Tokyo
Price: 29,800,000 yen ($260,000)
Size and Layout: 82.00 sqm (883 sqft) 4DK = 4 bedrooms in addition to the living and dining room
Floors: Three
Land Area: 42.86 sqm (462 sqft)
Land rights: Freehold
Year Built: 1990
Structure: Wood
Parking: Available
Studio Apartment in Ota Ward
Where: Ota Ward, Heiwa Jima station on the Keikyu Main line
Price: 28,300,000 yen ($247,000)
Size and Layout: 25.52 sqm (275 sqft), 1K = Studio apartment with kitchen
Floor: 2nd floor unit in seven-story building
Land rights: Freehold
Year Built: 2015
Structure: Reinforced concrete
Parking: Available
2-Bedroom Apartment in Shinjuku Ward
Where: Shinjuku Ward, Yotsuya San Chome station on the Marunouchi subway line. Very desirable location in Shinjuku ward. Nearby: Shinjuku Gyoen, one of Tokyo’s top three parks, walkable to Sophia University and central Shinjuku shopping district
Price: 28,800,000 yen ($251,000)
Size and Layout: 54.81 sqm (590 sqft), 2LDK = 2 bedrooms in addition to the living/dining/kitchen area
Floor: 4th floor unit in eight-story building
Land rights: Freehold
Year Built: 1968
Structure: Steel-reinforced concrete
Studio Apartment in Roppongi
Where: 1-minute walk from Roppongi Station on the Toei Oedo line. Roppongi is known for its active night scene and more recently the high-end Roppongi Hills shopping/office/entertainment/residential complex
Price: 24,980,000 yen ($218,000)
Size and Layout: 24.42 sqm (263 sqft), 1K = Studio with kitchen
Floor: 4th floor unit in nine-story building
Land rights: Freehold
Year Built: 1980
Structure: Steel-reinforced concrete
You may also be interested in: What can you buy in Kyoto for $200,000?
Article top photo: A house for sale in Hachioji, Tokyo
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