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Tokyo, Japan

Real Estate in Japan

By Joshua Wood, LPC

Last updated on Mar 08, 2024

Summary: An expat looking to buy a home in Japan should start by researching the different areas of the country and deciding which one best suits their needs. They should also research the local real estate market and look for properties that fit their budget and lifestyle. Foreigners are allowed to own property in Japan, but there are some restrictions. For example, foreigners are not allowed to own land, but they can own buildings and apartments. Houses in Japan typically include amenities such as air conditioning, heating, and hot water. Many homes also have modern appliances such as refrigerators, washing machines, and microwaves. Some homes may also include a garden or balcony.

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How do I find a place to live in Japan?

We asked expats how they chose their neighborhood and found a place to live. They answered:

"My husband's company gave us a real estate agent. We told her what we were looking for, and our price range. We also brought our dog with us, so it was much more difficult to find a place. Most places that allowed dogs were much more expensive," said one expat who made the move to Tokyo.

"The initial cost is about 3.5~5 times of monthly rent which is included the rent in next month and any other additional charge. You also have an option for short-term contract apartment which is called "monthly mansion" in Japanese. It makes to you to have thinking time to explore and find your thought clearly, you can even register the address there and get the bank account or phone number here. It is sometimes difficult for foreigners to pass the screening for housing application because it is usually required Japanese conversation capability, the phone number, and emergency contact here. Quality of Japanese lease apartment is well so you do not have to consider too deep but please remember there is no furniture installed at all but air conditioner," explained one foreigner living in Tokyo, Japan.

"One way to find a place to live in Japan is to use a real estate agent. Real estate agents can help you find a place that meets your needs and budget. You can also search online for rental listings, or contact local universities or companies to inquire about housing options. Additionally, you can look for classified ads in newspapers or on bulletin boards in public places. Finally, you can ask friends or family who live in Japan for advice and recommendations," said one in Japan.

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What is a typical expat home or apartment like in Japan?

"A typical expat home or apartment in Japan is usually modern and well-equipped with amenities such as air conditioning, washing machines, and high-speed internet. Many expat homes and apartments also come with a balcony or terrace, providing a great view of the city. Expat homes and apartments in Japan are typically furnished with comfortable furniture and appliances, making it easy to settle in and feel at home," explained one expat living in Japan.

"Typically in flats, houses are rather expensive an full of many small rooms, which for my taste is unpractical," said one person in Tokyo.

"I lived in a Mansion ( high rise) 10 yrs ago off base. I had a agent find me a place. Its best to have a Japanese represent you to landlords. They will speak for you & if any problems ,can represent you," said one expat who made the move to Kanagawa Perfecture.

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What is the average cost of housing in Japan?

If you are thinking about moving to Japan, cost of living in probably a key consideration. Expats commented about the cost of housing:

"The cost of housing in Japan is generally quite high, with the average cost of rent for a one-bedroom apartment in a city center being quite expensive. Prices can vary greatly depending on the location and size of the property, but overall, housing in Japan is more expensive than in many other countries," explained one person living in Japan.

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Should I buy or rent a home in Japan?

If you have not spent a lot of time in Japan, you should rent before even thinking about buying. We asked expats there about the buy vs. rent decision:

"Buying a home in Japan can be a great investment, as the country has a strong economy and real estate market. However, it is important to consider the cost of living in Japan, as well as the cost of purchasing a home. Renting a home in Japan can be a more affordable option, as it allows you to live in the country without the long-term commitment of buying a home. Additionally, renting a home in Japan can provide more flexibility, as you can move to a different area or change your living arrangements more easily than if you had purchased a home. Ultimately, the decision to buy or rent a home in Japan depends on your individual needs and financial situation," explained one person living in Japan.

What do I need to know when buying property in Japan?

When we asked expats what advice they would give a foreigner before buying a property in Japan, they said:

"When buying property in Japan, it is important to understand the legal process and the associated costs. It is also important to research the local area and the property itself, including any potential risks or liabilities. It is also important to be aware of the tax implications of buying property in Japan, as well as any restrictions on foreign ownership. It is also important to be aware of the different types of property available, such as residential, commercial, and industrial. Finally, it is important to work with a qualified real estate agent or lawyer to ensure that the purchase process is completed correctly," explained one person living in Japan.

Are foreigners allowed to own property in Japan?

When we asked expats what advice they would give a foreigner before buying a property in Japan, they said...

"Foreigners are allowed to own property in Japan, but there are certain restrictions. Generally, foreigners are not allowed to own land in Japan, but they can own buildings and other structures on the land. Foreigners can also own condominiums, which are a type of real estate that is owned by individuals rather than by the government. In order to purchase property in Japan, foreigners must obtain a residence card and register with the local government. Additionally, foreigners must have a valid visa and be able to prove that they have sufficient funds to purchase the property," explained one foreigner living in Japan.

What appliances are typically included in a rental?

We asked foreigners in Japan what appliances are typically included in a rental, and, if there is anything else included or not included that a newcomer would not expect. Replies included:

"In Japan, rental properties typically include a refrigerator, washing machine, air conditioner, and gas stove. Some properties may also include a microwave, toaster oven, and/or dishwasher. Additionally, some properties may include furniture such as a bed, sofa, and/or dining table," explained one person living in Japan.

Additional Information about Searching for a Home in Japan:

We asked foreigners in Japan what appliances are typically included in a rental, and, if there is anything else included or not included that a newcomer would not expect. Replies included...

"Expats can search for homes in Japan by using online real estate websites, such as Suumo or At Home, which offer a wide range of listings for apartments and houses. Additionally, expats can contact real estate agents who specialize in helping foreigners find homes in Japan. Additionally, expats can search for homes in Japan by attending open houses or by networking with other expats who may have knowledge of available properties," explained one expat in Japan.

About the Author

Joshua Wood Joshua Wood, LPC is one of the Founders of Digital Nomad Exchange and serves as Co-President of Expat Exchange. Prior to Expat Exchange and Digital Nomad Exchange, Joshua worked for NBC Cable (MSNBC and CNBC Primetime). Joshua has a BA from Syracuse and a Master's in Clinical and Counseling Psychology from Fairleigh Dickinson University. Mr. Wood is also a licensed counselor and psychotherapist.

Some of Joshua's articles include Pros and Cons of Living in Portugal, 10 Best Places to Live in Ireland and Pros and Cons of Living in Uruguay. Connect with Joshua on LinkedIn.

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