This month we continue to see strong year-on-year growth in inquiries for properties in Tokyo’s 23 Wards.
Below we answer some frequently asked questions, and take a look at what you can buy in Tokyo’s 23 wards for about $300,000 (¥33,600,000).
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 Getting a Home Loan in Japan as a Foreigner and Mortgage Calculator for Home Mortgage Loans in Japan.
How much does a house or apartment cost in Tokyo?
- Tokyo 23 Wards Average Listing Price: In April 2017, the average listing price for a 70-sqm re-sale condo in the Tokyo 23 Wards was ¥53,230,000, a year-on-year increase of 1.3%, according to Tokyo Kantei (in Japanese). Based on this, the average listing price per sqm would be ¥760,428.
- Central 6 Wards Average Listing Price: Reflecting their proximity to convenient transportation, shopping and business hubs, and other urban amenities, properties in the central six wards (Chiyoda, Chuo, Minato, Shibuya, Shinjuku, and Bunkyo), have a much higher average listing price, at ¥73,030,000, a year-on-year increase of 1.8%. Based on this, the average listing price per sqm would be ¥1,043,285.
Average contracted sales prices were lower than average listing prices:
- Tokyo 23 Wards Average Sales Price: The average contracted sales price of a re-sale apartment in April 2017 reached ¥743,600 per sqm, an 8.2% year-on-year increase and the 55th consecutive month of year-on-year increases.
How much should I have ready for the down payment and other upfront costs?
Please see this article: Breakdown of purchase fees and taxes when buying property in Japan
What about taxes and fees?
Taxes will add about 6% to 7% to the purchase price. Please see this article for a detailed explanation of Japanese real estate taxes, including annual fixed-asset (property) taxes to plan for.
Brokerage Fees
If you use an agent to buy a property, you will have to a brokerage fee (commission) of 3% of the purchase price plus 60,000 yen plus consumption tax (currently 8%).
What about monthly expenses?
If you buy an apartment in Japan, you should also set aside building management fees, in addition to the repair reserve fees mentioned above.
Building management fees pay for the day-to-day running of the building, such as common area maintenance and the salary of the on-site building manager, if there is one. The building’s management association, consisting of the owners of the building, set the building management fees.
Now let’s take a look at some listings.
Beautifully renovated 1BR apartment near Meiji Jingu (Shrine), Shibuya Ward
Where: Enviable location near Meiji Jingu (Shrine), 8-min walk to Meiji Jingumae Station on the Fukutoshin Line.
Price: ¥33,900,000 ($304,000)
Size and Layout: 33-sqm 1-bedroom (1LDK)
Floor: 3rd-story in 5-story building
Land rights: Freehold
Year Built: 1977, interior has been renovated
Structure: Reinforced concrete
Studio Apartment For Sale in Shinjuku Skyscraper District
Where: Excellent location in Shinjuku skyscraper district. 5-min walk from Nishi-Shinjuku Go-Chome Station on the Toei Oedo Line, 10-min walk from the Tokyo Metropolitan Government Buildings
Price: ¥32,800,000 ($294,000)
Size and Layout: 31-sqm studio apartment (1DK = 1 Room + Dining/Kitchen)
Floor: 10th-floor in 13-story building
Land rights: Freehold
Year Built: 1977, interior has been renovated
Structure: Reinforced concrete
2BR House for Sale in Nerima Ward, 4-stops from Ikebukuro
Where: Nerima Ward, 12-min walk from Hikawadai Station on the Yurakucho Line, 4-stops from Ikebukuro. Near the Nerima Ward Athletic Park. Quiet but convenient residential neighborhood.
Price: ¥32,000,000 ($287,000)
Size and Layout: 52-sqm 2BR-house (2LDK)
Stories: 2
Land rights: Freehold
Year Built: 1972
SEE ALL FOR SALE PROPERTIES IN TOKYO 23 WARDS
You may also be interested in: What can you buy in Japan’s regional cities for $150,000?
5 thoughts on "What can you buy for $300,000 in Tokyo this month?"
Where is Niiza?
Niiza-shi, Saitama-ken look it up dude! Ever heard of google?
Nope! Google is just some search engine. I own five rental properties in Japan, and I don’t need no trust fund/inheritance to buy a house! Don’t need a guarantor, either! Like your father-in-law!
I apologize for my shortcomings.
You are sadly mistaken! This was a very easy loan to qualify for, just my wife and I, not that this this is any of your business, another short coming perhaps? If you own 5 rental properties in JP then you also know “Niiza” dont be a jerk! I own properties back in the US so whats your point?
We decided to build a HABAL HAUS. It is the #1 home builder in Japan. Construction starts in October 2017. In US dollars we are looking at about 700,000. My suggestion for people looking at moving or living in Japan is to be more forward thinking in your approach! My wife and I work from home hence it allows for many more options as to where to live.