※ This article is for informational purposes and personal analysis only, not a recommendation to buy or sell any specific investment products. Please verify with official sources and consult qualified professionals for investment, tax, or legal advice; you are solely responsible for your decisions. Market conditions may change after the time of writing.
This is a pillar page. Each chapter links to in-depth articles. Get the big picture first, then follow the links that matter most to you.
Why Tokyo, Why Now
As of April 2026, the median existing-condo price across Tokyo’s 23 wards is roughly ¥92 million (~¥1.4M/sqm). In Minato, Chiyoda, and Shibuya, new-build tsubo prices have surpassed ¥9 million, with Akasaka breaking ¥10M/tsubo.
Three pillars support this rally:
- Foreign buyers at 27% of transactions — the weak yen (JPY/KRW 800–900) keeps funneling Korean, Taiwanese, and Singaporean capital.
- Structural supply shortage — new condo supply in central Tokyo is chronically tight.
- Red-hot rentals — occupancy above 96% in central compact apartments.
Japan has virtually no restrictions on foreign property ownership. No visa, no PR, no government approval. I wrote this guide to answer: “So how do I actually start?”
Chapter 1. Areas, Prices & Tsubo Benchmarks
| Tier | Key Wards | Tsubo Range | Profile |
|---|---|---|---|
| Core 3 | Chiyoda, Chuo, Minato | ¥6M–10M+ | Appreciation |
| Sub-core 3 | Shinjuku, Shibuya, Bunkyo | ¥4.5M–7.5M | Balanced |
| Residential | Setagaya, Suginami, Meguro | ¥3.5M–5M | Owner+invest |
| Outer | Adachi, Edogawa, Katsushika | ¥2M–3.5M | High yield |
The key is the tsubo × yield × liquidity triangle.
Chapter 2. Buying Process — 8 Steps
| Step | Action | Key Point |
|---|---|---|
| 1 | Budget | +12–18% for taxes, brokerage, legal |
| 2 | Broker | Foreign-client experience required |
| 3 | Search & inspect | Check management minutes, repair reserves |
| 4 | Offer | Kaitsuke shomeisho — negotiate here |
| 5 | Important matters | Jūyō jikō setsumei — get it translated |
| 6 | Contract & deposit | 5–10% of price |
| 7 | Financing | Non-residents: cash. Residents: Prestia, SBI Shinsei |
| 8 | Closing & registration | Judicial scrivener files at Legal Affairs Bureau |
Non-residents: passport + notarized affidavit replaces inkan. No jūminhyō — use home-country notarized docs. Use escrow or scrivener trust accounts.
📖 Buying Process Deep-Dive: 8-Step Guide | 3 Things About Japan RE | Contract Traps in Tokyo
Chapter 3. Yields & J-REITs
| Metric | Core 3 | Sub-core | Outer |
|---|---|---|---|
| Surface yield | 3.0–4.0% | 4.0–5.5% | 5.5–8.0% |
| Mgmt fees | ¥20–50K/mo | ¥15–30K/mo | ¥10–20K/mo |
| Vacancy risk | Low | Moderate | High |
Net yield = (Annual rent − Costs) ÷ (Price + Transaction costs) × 100
J-REITs offer 3–4% distributions, BOJ backstop history, and FX upside.
📖 Yield vs Capital Gain Breakeven | J-REIT 5 Things | Hotel vs Office REITs | Rate Hikes & J-REIT
Chapter 4. Redevelopment
Tokyo is mid-cycle in a “once-in-a-century” redevelopment wave. Nihonbashi, Yaesu, Toranomon, and Shibuya mega-projects complete 2028–2030. Adjacent value uplift has already started.
Principles: buy before groundbreaking, target existing renovations within 5-min walk from stations, understand rights-conversion structures.
📖 Coredo Nihonbashi Redevelopment | Mitsui Pipeline Pt.3 | Office Vacancy 2% — 5-Ward Map
Chapter 5. Taxes, Depreciation & Corporate Structures
Depreciation — The Tax Shield
| Structure | Useful Life |
|---|---|
| Wood | 22 yrs |
| Light steel | 19–27 yrs |
| RC / SRC | 47 yrs |
Straight-line only since 2016. Used buildings past statutory life: life × 0.2 = shortened depreciation.
Corporate vs. Personal
| Factor | Personal | Corporate (GK/KK) |
|---|---|---|
| Tax rate | 5–45% | Effective 30–35% |
| NR withholding | 20.42% | Avoidable |
| Inheritance | Up to 55% | Share transfer route |
Chapter 6. Risks — Earthquakes, FX & Rates
- Earthquakes: Post-1981 buildings withstand intensity 7. Insurance covers 30–50% of fire policy. Avoid reclaimed land.
- FX: JPY/KRW 800–900 demands dual-scenario planning. I play both sides.
- Interest rates: BOJ tightening cycle underway, but glacial by global standards.
📖 Earthquake-Vulnerable 5 Areas | Weak Yen Allocation | When FX Shakes
Chapter 7. Visas & Residency
No visa needed to own. To live and manage: Business Manager Visa (¥30M capital post-2025 reform), HSP (80+ points = PR in 1 year), or 10-year residence path.
Pre-Purchase Checklist
- Define goal — income, gain, tax shield, or residence
- Budget — price + 12–18% costs + contingency
- Shortlist 3 areas — tsubo, yield, redevelopment
- Seismic standard — post-June 1981
- Tax structure — personal vs. corporate
- Local team — broker, scrivener, tax accountant, manager
- FX scenarios — entry rate vs. 3–5yr exit
- Review repair reserves — request chōki shūzen keikaku
Disclaimer: Informational only. Not a recommendation. Consult local professionals. Data as of April 2026.
