What should foreigners take note of when buying properties in Tokyo?
Separating the categories into residential and investment properties, this article will explain what to consider when choosing properties in Tokyo. Furthermore, taking those factors into consideration, we will introduce properties that are highly recommended.
Properties for Investment
Recommended Areas in Tokyo
When purchasing an investment property, we recommend purchasing an apartment located less than 5 minutes on foot from Ebisu Station, Meguro Station, and Shinjuku Station. If there aren’t many properties near the station, we recommend a place within 7 minutes on foot.
One reason these areas are recommended is that they are located along the popular "Yamanote Line," a train line which goes around the central areas of Tokyo. Furthermore, as the stations are connected to other railways, their easy accessibility is highly attractive.
In addition, the aforementioned stations are listed in the “Top Residential Areas in Tokyo” ranking of SUUMO, Japan’s top real estate site. Plus, these areas are popular among Japanese investors, so you can sell the property with ease. This makes it easy to rent, and raise the rent of, properties in these areas.
Property Type
Properties that have been internally renovated for more than 20 years are often used, and we recommend purchasing rooms on the second floor or higher.
Properties that have been constructed more than 20 years ago and have been renovated once are recommended. These existing properties are attractive because they can be purchased for a more affordable price compared to newly built ones. Plus, if the property is renovated, the asset value is maintained as the interior is clean.
We recommend properties on the second floor or higher, as single women refrain from living on the first floor for security reasons. Prices will not exceed 10- 40 million yen for studio apartments, 1LDK apartments, and 2DK apartments. If you are lucky, yields will not exceed 5%.
Properties for Residency
Recommended Areas in Tokyo
When purchasing real estate for residential use, it is recommended to choose a large condominium or a property in a tower apartment (“tower mansion”) located in Futako Tamagawa, Musashi Kosugi, or Toyosu.
These are all in the newly developed urban area, where there are houses surrounding large shopping malls, and infrastructures necessary for foreigners to live.
Property Type
Second-hand houses that are within 10 years since construction, and are within 10 minutes on foot from the nearest station, are recommended. Furthermore, properties that are 2LDK or larger are attractive.
Many families with small children reside in these areas. Therefore, they are surrounded by plenty of hospitals and other convenient services. Additionally, it is easy to get to central Tokyo as there are multiple train stations and railway lines.
The price of properties is within the range of 40 million yen at the lowest, while some can reach higher than 100 million yen.
One other option is to renovate a used property in central Tokyo. However, if the property cannot be renovated, it is recommended to choose one nearby the station and has other attractive conditions.
How to choose the best property in Tokyo
If you have any questions or would like to arrange a viewing, please feel free to contact us!
- Questions Frequently Asked by Foreigners on Buying Japanese Property
- Apply for a Home Loan in Japan as a Foreigner in 4 Steps
- Buying Land in Japan: What are the types of ownership rights?
Explore about Japanese properties with our Guidebook
In this Guidebook - from Sekai Property, you will have chance to know:
- An overview about purchasing property in Japan
- Steps in purchasing property in detail with Property Flow, Costs and Taxes
- Example case
Let’s download it if you want to approach this big real estate market!
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