Complete Property Buying Guide — Japan

Understanding the Japan Property Market

The property market in Japan offers diverse opportunities across its key markets. Tokyo, Osaka, Yokohama, Nagoya, Sapporo, and Fukuoka represent the main buying hotspots, with prices and demand varying significantly between regions.

The Bank of Japan sets the benchmark interest rate, which influences mortgage pricing across all lenders. Use our mortgage calculator to estimate repayments based on current rates.

Property Prices and Key Markets

Typical prices in Japan range from ¥15,000,000 for apartments in regional cities to ¥60,000,000+ in central Tokyo.

Japanese property is unique in that buildings depreciate rapidly — wooden houses are considered worthless after about 22 years, and even reinforced concrete apartments lose most building value within 47 years. Land value is what retains worth. This means buyers often purchase older properties for land value alone and rebuild. Japan also has extremely low fixed mortgage rates, with some lenders offering rates below 1%

Setting Your Budget

Beyond the purchase price, you need to budget for transaction costs that typically add 6-10% including agent commission (up to 3% + ¥60,000), registration taxes, stamp duty, and judicial scrivener fees to the total. Your deposit requirement is 10-20%, though this varies by lender and your buyer profile.

Registration and license tax (登録免許税) is 0.3% for transfer registration, plus real estate acquisition tax (不動産取得税) of 3% for residential land and 3% for buildings. Stamp duty (印紙税) applies to the contract based on transaction value

Read our buying costs guide for a detailed breakdown of all purchase-related expenses.

Getting Finance Approved

Mortgage terms in Japan extend up to 35 years, with 35-year terms common for first-time buyers. The Flat 35 programme offers 35-year fully fixed rates. Lenders typically offer up to 100% through the Flat 35 programme. Banks typically lend 80-100% for primary residences loan-to-value, meaning you need at least the remainder as a deposit.

Compare rates across major lenders including MUFG Bank, Sumitomo Mitsui Banking, Mizuho Bank, Resona Bank, ARUHI (Flat 35 specialist), SBI Sumishin Net Bank, and Japan Housing Finance Agency (Flat 35). Our mortgage types guide explains the differences between available loan products.

Finding and Securing Property

Working with a qualified real estate agent (不動産業者/fudōsan gyōsha, licensed under takken) is the standard approach in Japan. Research local areas thoroughly, attend viewings, and consider factors like transport links, amenities, and future development plans.

Legal Process and Due Diligence

Property transfers in Japan require a qualified judicial scrivener (司法書士/shihō shoshi) to handle the legal process. After agreeing on terms, the buyer pays earnest money (手付金, typically 5-10%) and signs the contract. A judicial scrivener handles the ownership transfer registration at the Legal Affairs Bureau (法務局). There is no escrow system — payment is typically exchanged directly for keys at the settlement meeting. Title insurance is not standard in Japan.

Professional building inspections (建物状況調査/tatemono jōkyō chōsa) have become more common since 2018 law reforms required agents to explain whether an inspection has been conducted. For apartments, review the management association records (管理組合) for maintenance history, repair fund adequacy, and planned works

See our property inspection checklist for what to check before committing.

Government Support for Buyers

The housing loan tax deduction (住宅ローン控除) allows buyers to deduct 0.7% of the remaining loan balance from income tax annually for 13 years on new homes (10 years for existing homes). Sumai-Kyufu-Kin (すまい給付金) provided cash grants to buyers based on income level but has been replaced by other schemes. Reduced registration tax rates apply for properties meeting certain quality standards

Check our government grants guide for the latest programmes and eligibility criteria.

Next Steps

Use our mortgage calculator to model different scenarios, browse Japan FAQs for quick answers, or read our complete mortgage guide for detailed information on rates and lenders.