Buy a Flat in Tokyo and discover ideal living options that match your lifestyle and budget. Whether you’re looking to rent a cozy apartment or purchase a long-term home, Tokyo offers a wide range of choices in vibrant districts and quiet suburbs. Find your perfect place to live, work, and thrive in Japan’s dynamic capital.

Can Non-Residents Legally Own a Home in Tokyo?

Yes, they can, and it’s simpler than you might think. Foreign nationals are allowed to purchase both land and residential properties in Tokyo with full ownership rights. There’s no requirement to be a Japanese citizen or even hold a visa. You can own property outright, just like a local.

Still, a few key details are worth paying attention to.

• If you don’t reside in Japan, you’ll need to notify the Bank of Japan within 20 days after completing the transaction.
• Securing a mortgage can be difficult without long-term residency or a stable income in Japan, so many international buyers either pay in full or arrange financing through a bank in their home country.
• Some specific property types, like agricultural land or land near military zones, may require prior approval or have purchase restrictions.

In short, buying a home in Tokyo as a foreigner is entirely legal and increasingly common. With proper preparation and help from a reliable real estate agent, the process is both manageable and rewarding.

Tokyo’s Property Market in 2025: An Overview

In 2025, Tokyo’s real estate scene remains active, driven by a steady interest from both domestic and international buyers. Resale apartment prices have continued to edge higher, reflecting tight availability and growing demand in central districts. While the cost of newly constructed units has slightly adjusted after years of sharp increases, overall pricing across the city is still on an upward trajectory.

One of the key shifts this year is the reduced number of new developments hitting the market. Fewer construction projects mean limited options for buyers, especially in highly sought-after neighbourhoods. Meanwhile, major redevelopment zones, like those near Yaesu and Tokyo Station, are drawing long-term investors thanks to their improved infrastructure and rising potential for growth.

Foreign investment also plays a role in shaping the market, particularly with the yen remaining relatively weak. However, rental yields have dipped compared to previous years, suggesting that property ownership in Tokyo is increasingly driven by value appreciation rather than rental income.

All in all, Tokyo’s property market in 2025 continues to be competitive but rewarding. For buyers who are ready and well-informed, there are still great opportunities to secure long-term value in one of the world’s most vibrant cities.

Tokyo market stays active, supply remains tight

How to Buy a Residential Property in Tokyo

Thinking about owning a place in Tokyo but not sure where to start? You’re not alone. The process can feel overwhelming, especially if it’s your first time dealing with real estate in Japan. To make things easier, here’s a streamlined checklist that walks you through each stage – simple, clear, and to the point:

• Clarify your purpose: Are you purchasing for personal use, rental income, or a second home?
• Find a trusted agent: Look for someone who understands the market and has experience helping international clients.
• Get your paperwork ready: This typically includes your passport, proof of savings, and a verified ID statement.
• Explore financing solutions: Loans may require residency, so many buyers choose to pay outright or finance abroad.
• Submit your offer: Once you’ve found the right place, your agent will help present your proposal to the seller.
• Finalise the contract: If accepted, sign the agreement and pay an initial deposit, often around 10%.
• Complete payment and register ownership: Settle the remaining amount and officially record the property under your name.
• Understand your tax obligations: Be prepared for a one-time acquisition tax plus annual fees on the property.
  Arrange for property upkeep: If you won’t be living there, consider hiring a management company to handle it.

Flat vs. Apartment in Japan: What’s the Difference?

If you’ve started looking for a place to live in Japan, you’ve probably come across the words “flat” and “apartment.” They sound the same, right? But in Japan, people actually use different terms to describe different types of buildings, and understanding them can save you from a lot of confusion later.

Instead of “flat” or “apartment,” the Japanese usually say “apāto” and “manshon”, and they mean two very different things.

Apāto (アパート) – Simple, Budget-Friendly Units

When searching for a place to live in Japan, you might notice the term “apāto” popping up quite a bit. This type of housing typically refers to modest, low-rise buildings designed for practicality rather than luxury. If you’re considering one, here’s a quick look at what they usually offer:

• Usually, 2–3 story buildings tucked into quiet neighbourhoods
• Made from wood or lightweight materials, so sound insulation is limited
• Typically no elevator, and the facilities are pretty basic
• A great option if you’re on a tight budget, a student, or not planning to stay long
• Think small, no-frills housing that’s good enough to get by

Manshon (マンション) – Modern, Sturdy Buildings

If you prefer something more solid and well-equipped, a manshon might be the right fit. Below are the common elements you’ll come across:

• Taller structures made with reinforced concrete, strong and safe
• Often come with elevators, intercom systems, balconies, and better insulation
• Feels more like a condominium, and the interior is usually more modern
• The price tag is steeper, yet the overall experience is more refined.
• Whether you’re looking to lease or buy, both options are open.

Top Areas to Buy an Apartment in Tokyo

Choosing the right area can make a huge difference when buying a place in Tokyo. Whether you’re after a quiet retreat or a lively, central location, here are a few standout neighbourhoods worth considering:

• Minato (Azabu, Roppongi): A favourite among expats and business professionals, Minato combines prestige and convenience. With embassies, international schools, and upscale properties, it’s ideal for those looking for a polished, urban lifestyle.
• Shibuya (Ebisu, Daikanyama): If you’re drawn to creative energy and stylish living, Shibuya’s quieter corners like Ebisu and Daikanyama offer a perfect mix of charm and modern design. You’ll find great cafes, boutique shops, and well-designed apartments.
•  Kichijoji: Tucked slightly west of central Tokyo, Kichijoji is loved for its community feel and balance of city life and nature. With its lively shopping streets and access to Inokashira Park, it’s great for families or anyone seeking comfort without chaos.
• Chiyoda (Kanda, Iidabashi): Located in Tokyo’s political and historical core, Chiyoda offers a blend of tradition and accessibility. Great transport links and proximity to universities and business districts make it a solid choice for urban professionals.

How Much Does It Cost to Own Property in Tokyo?

Owning a home in Tokyo doesn’t come cheap, especially in the city centre. As of 2025, the going rate for brand-new condos in prime locations can hit around ¥1.7 million per square meter, meaning a typical 100 sqm unit might set you back roughly ¥170 million, or about USD 1.13 million. Pre-owned units are more affordable, averaging around ¥819,000 per square meter, while detached homes across the city are priced near ¥42 million (approx. USD 280,000), depending on size and location.

Beyond the listed price, there are other expenses to factor in. Buyers also need to factor in additional charges like a 3% commission for the real estate agent, stamp taxes, registration-related fees, and annual levies based on the property’s valuation, usually around 1.4% per year.

Tokyo’s housing market has remained stable, and experts predict values will continue to edge up by 5–6% annually. While the initial outlay may feel steep, many see property in Tokyo as a smart long-term investment, whether you’re planning to live in it or simply looking for asset growth over time.

Tokyo homes are pricey but still appealing.

Tips for First-Time Homebuyers in Japan

Stepping into the Japanese housing market for the first time can be both exciting and confusing. One of the smartest things you can do early on is define your financial limits, not just the purchase price, but also the extra expenses that come with it, like taxes, agent fees, and upkeep. Japan has a variety of property types, so take time to explore what fits your lifestyle best, whether it’s a compact city apartment or a standalone house in the suburbs.

Working with a knowledgeable real estate professional can make a difference. Find someone who understands the needs of international clients and can walk you through the process clearly, especially when it comes to paperwork and legal checks. It’s also crucial to confirm that the home you’re eyeing has no unresolved issues and is properly registered.

Beyond the sale itself, think ahead. Consider ongoing costs like annual taxes, building fees (for condos), and future repairs. Have your documents in order, passport, residence ID, and income proof, before you get serious. And perhaps most importantly, know your “why”: Are you planning to live there, rent it out, or hold it as an investment? Being clear on your goal will help guide every decision that follows.

Define your goal before signing the deal.

Renting vs. Buying in Tokyo: What’s Right for You?

If you’re thinking about settling down in Tokyo, one of the biggest choices you’ll face is whether to rent or own your place. Renting offers ease and flexibility; it’s perfect if you’re not ready to commit long-term or prefer to move around without much hassle. The initial expenses are lighter too, and since the landlord usually takes care of repairs, you won’t have to worry about surprise maintenance costs. That said, monthly rent doesn’t give you any ownership, and you might be limited in how much you can personalise the space.

Buying, on the other hand, is all about planting roots. While the upfront investment is much higher, with mortgage payments, taxes, and ongoing upkeep, it gives you long-term security and full control over your living environment. You’re not just paying to live, you’re building value in something that’s yours. It’s a big step, but if you plan to stay for years, it could pay off financially and emotionally.

So, which one is better? The right choice varies depending on your personal and financial goals. If you need flexibility or aren’t sure how long you’ll be in Japan, renting gives you room to breathe. But if you’re here to stay and want something to call your own, buying might just be the smarter path forward.

Live light or build value, your Tokyo decision

Conclusion

Both renting and buying in Tokyo have their advantages. Renting is ideal for those who prioritise flexibility, lower upfront costs, and fewer commitments. Buying, on the other hand, suits individuals planning to stay long-term, offering more stability and the opportunity to invest in property value over time.

If you’re still deciding or need support finding a place that matches your needs, whether it’s for rent or purchase. Arealty.jp can guide you through the process and help you find the right home with ease.