A list of the top banks in Japan
A list of the top banks in Japan, including SMBC, MUFG Bank, Mizuho Bank, Resona Bank and Kansai Mirai Bank.
Buying property in Japan as a Brit
If you’re planning a move to Japan from the UK, finding somewhere to live will be at the top of your to-do list. You might be planning to rent at first, before buying your very own home in Japan.
To help you navigate the process, we’ve put together a helpful guide to buying property in Japan as a Brit. This is a must-read for anyone looking to buy a permanent home, holiday home or an investment property in Japan.
We’ll run through what to expect from the buying process, plus fees, taxes, legal requirements and the latest info on Japanese property prices.
What’s more, we’ll also show you a cost-saving way to transfer funds between the UK and Japan using the money services provider Wise. You can send international payments with Wise, for low fees and mid-market exchange rates. It could save you a bundle compared to using a bank*.
Please see the Terms of Use for your region or visit Wise fees & pricing for the most up-to-date information on pricing and fees.
What’s the property market like in Japan?
Property prices in Japan have been rising over the last few years, with a jump of 7.5% recorded in 2022.¹
Prices vary considerably depending on location, with increases of up to 10.5% recorded in cities like Osaka. Demand for properties is relatively weak, with sales falling in major cities like Tokyo and Osaka.¹
Interest rates are also rising in Japan.¹
All of this means that it could be an expensive time to buy property in Japan, although there’s always the chance to snap up a bargain in areas where demand is weak.
Can foreigners buy property in Japan?
Yes, foreign nationals can buy property in Japan. You can even buy property if you’re not a resident, although you may find it more challenging to meet some of the documentation and other requirements.
Processes like applying for a mortgage and opening a Japanese bank account can also be more complicated for foreigners and non-residents.
There are some types of property that you can’t purchase as a non-Japanese national, however. This includes:
- Land designated as ‘forest’ or ‘agricultural’, without getting permission from the Japanese government. This is under the Foreign Exchange and Foreign Trade Act (FEFTA).
- Land near military bases or other security-sensitive locations
- Some condominium buildings which have ‘foreigner bans’ or ‘gaijin bans’ restricting the sale of units to non-Japanese buyers.
Can you buy property in Japan and get residency?
Unlike some countries, Japan doesn’t have a ‘golden’ or investment visa which allows you to get a residency permit by investing in property.
If you’re interested in routes to residency, there’s full information on all Japan visa types here on the Ministry of Foreign Affairs of Japan website.
| 📚 Read more: Moving to Japan from the UK: a complete how to guide |
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Buying property in Japan as a foreigner - a step-by-step guide
Nearly ready to start house hunting? Before you do, it can be useful to know a little about how the process of buying property works in Japan. Here’s an overview of the steps involved:³
1. Search for a property
It could be a good idea to use a local real estate agent to help you with your search. We’ll give you some tips on estate agents and online property websites later in this guide.
2. Get your finances in order
Before viewing properties, aim to get your finance arrangements in place. You may be able to get pre-approval for a mortgage in writing, which can be a strong bargaining chip when making an offer.
3. Express your intent to purchase in writing
Found your dream property? You’ll need to submit a Letter of Intent to the seller. For new build properties, there may be an application form to complete. Submitting either of these shows that you’re serious in your intention to buy.
4. Negotiate the price and sale details
At this stage, an experienced property agent can be invaluable. Your agent will negotiate with the seller on the purchase price, timings of the sale, possible payment methods and much more. Legal documents will be drafted and due diligence checks carried out.
5. Finalise your mortgage
While the negotiations and legal work are ongoing, you’ll need to officially apply for your mortgage (if applicable).
6. Pay the deposit
A deposit of around 10% (although it can be less) is payable to the seller in cash at this stage. Your agent will also provide you with a package of documents which includes the following:
- Owner title registration
- Ownership type
- Property legal description
- Provisions in case of contract cancellation.
7. Completion
A date is arranged for the final settlement of the balance, which usually takes place at your bank of choice. It’s handled by an official known as a ‘judicial scrivener’. You’ll pay the remaining balance, the title will be transferred to you and you’ll get the keys to your new home.
Can you get a mortgage from a Japanese bank as a non-resident?
You may find it difficult to get a mortgage from a Japanese bank if you’re not living in the country or have permanent residency status. However, this doesn’t mean it’s impossible.
Some larger banks such as SMBC Prestia have been known to offer mortgages to non-resident foreigners. For the best chance of success, look for a bank which specialises in providing services to foreigners, and which has English-speaking staff. ⁴
Taxes and fees for owning property in Japan
As well as the purchase price, you also need to factor in the relevant fees and taxes for buying property in Japan. There are quite a few you need to know about.
The first is stamp tax, which is based on the agreed purchase price of the property:⁵
| Property price | Stamp tax due |
|---|---|
| 5-10 million yen | 5,000 yen |
| 10-50 million yen | 10,000 yen |
| 50-100 million yen | 30,000 yen |
| 100-500 million yen | 60,000 yen |
| 500 million - 1 billion yen | 160,000 yen |
| 1 billion - 5 billion yen | 320,000 yen |
| 5 billion yen+ | 480,000 yen. |
You’ll also pay:⁵
- Real estate registration tax. This is set at 1.5% of the fixed asset tax value of the land, plus an additional 0.3% of the value of the building.
- Real estate acquisition tax. This is 1.5% of the fixed asset value of the land, or 3% of the fixed asset value of the building.
- Mortgage registration tax, which is 0.4% of the mortgage value.
- Real estate agent fees. This is 3% of the sale price, plus 60,000 yen and a consumption tax of 10%.
- Annual property taxes. There’s a fixed asset tax of 1.4% (of the base taxation amount) and a city tax of 0.3%.
- Maintenance, repair and management fees. If you own an apartment in a building, you’ll need to pay monthly fees of around 350 to 600 yen per square metre. These go towards the running costs of the building.
| 📚 Read more: Pros and cons of living in Japan? You'll wanna read this. |
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How much are the property prices in Japan?
Generally speaking, property in Japan is a touch cheaper than in the UK, but there’s not a lot in it. On average, it’s around 6.8% cheaper to buy an apartment in a city centre in Japan, and around 28% cheaper to buy one outside a major city.⁶
The average property price in Japan (based on buying a flat) is around 45,661,608 JPY (roughly £251,000).⁷
Where you buy will also affect the property price, based on what’s happening in the local market. Here’s a guide to what you can expect to pay per square metre in a couple of Japan’s major cities:⁸
| City | Average apartment price per sq.m - city centre | Average apartment price per sq.m - outside city |
|---|---|---|
| Tokyo | 1,009,029 JPY | 594,521 JPY |
| Osaka | 895,727 JPY | 512,288 JPY |
Remember though that property prices will also vary depending on the type of property.
When it comes to sending over money for your deposit and the final balance, Wise could be the ideal solution. It’s safe, secure and fast, even for sending large transfers.
What’s more, you’ll get mid-market exchange rates and low fees when you send money with Wise. This could save you a small fortune compared to using your bank.
Learn more about sending money with Wise 💰
Please see the Terms of Use for your region or visit Wise fees & pricing for the most up-to-date information on pricing and fees.
Where is the cheapest place to buy property in Japan?
According to figures from 2022, the cheapest places to buy property in Japan are the Tohoku regions of Akita and Aomori. You may also be able to snap up a great value property in the prefecture of Tottori in western Honshu.
If you’re buying on a budget, you may be best steering clear of major cities and urban areas, where prices are unsurprisingly much higher.
How can you find a property in Japan?
There are a few ways you can find property to buy in Japan. You can use a real estate agency, look online on property websites - or use a combination of both.
Property agencies and agents in Japan
It’s strongly recommended to use an estate agent to find and buy your property in Japan, especially if you’re not a fluent Japanese speaker.
An agent will be knowledgeable about the local property market, and can help you with a lot of the legal and administrative processes involved in purchasing the property. They can also negotiate on the price.
If you’re looking for an agent, aim for one which offers multilingual support. Some of the most foreigner-friendly large agencies include:¹⁰
Property websites in Japan
Even if you’re using an agency, you can at least start your search for property in Japan online. This can be a good way to figure out what you want, and what’s available for your budget.
Here are some of the most popular property websites for Japanese real estate:¹¹
What are some of the pitfalls of buying property in Japan?
There are a few things you should be aware of when buying a home in Japan:
- There are a lot of costs and taxes, as well as processes and paperwork you may not be familiar with. This is why it’s essential to have a knowledgeable and specialist agent in your corner, to help you navigate it all.
- Most if not all of the process will be conducted in Japanese, so you’ll need to have a translator to help you understand everything properly.
- Risk of natural disasters. Unfortunately, Japan is known for having its fair share of earthquakes, tsunamis, landslides, floods and volcanoes, all of which could damage your newly purchased property. So, you’ll need to check your insurance policy small print carefully to make sure you’re covered.
- Older houses may be in need of renovation. Refurbishment and DIY aren’t super popular in Japan, as older houses tend to be demolished and new ones built instead. So if you are buying an older home, you may need to budget for renovations.
- Scams and fraud. Buying international property will always come with its risks, especially when it comes to fraud. Before sending any money to anyone, make sure to check out their credentials thoroughly. Make sure to only work with accredited or registered agents and solicitors. If in doubt - hold off on making any payments.
How do you choose the right property in Japan?
The right property for you will all depend on where you want to live, the type of home and of course, the price.
If you’re not already living there, it’s worth making a trip to check out the local area and view properties. Pay attention to local transport links and amenities, and try to get a feel for the area.
Condition of the property
It’s crucial to do as much research as possible before committing to purchase a property, making sure it’s in good condition and that there are no major issues.
A structural survey could give you valuable information on any potential problems with the property.
If you have any concerns at all, it could be an expense well worth paying.
| 📚 Read more: Study in Japan from the UK: visas, universities, and costs |
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Moving into your Japanese property
As you look forward to getting the keys to your new home, you’ll have a final few tasks to check off your list.
Insurance
You’ll need to get suitable insurance before you take possession of the property, depending what level of cover you need.
Setting up utilities
Got your completion date? Once this is confirmed, you can start making arrangements to move in. It makes sense to get some essentials set up in advance, such as utilities like heating, power and water. This should be relatively straightforward, but you may need assistance from an interpreter if you don’t speak much Japanese.
Energy efficiency renovations
Bought a property with an old heating system or poor insulation? One of your first priorities might be to carry out energy efficiency renovations. This can make your home more comfortable (especially in winter) and lower your heating bills.
And that’s it - your complete guide to buying property in Japan as a Brit. We’ve covered it all, from the buying process to fees, taxes and property prices.
After reading this, you should have a better grip on how it all works, and be ready to start house hunting.
And, if you need an easy, low-cost way to handle your finances in both the UK and Japan, consider checking out the Wise account.
Please see the Terms of Use for your region or visit Wise fees & pricing for the most up-to-date information on pricing and fees.
Sources used for this article:
- Global Property Guide - Japan’s property prices continue to rise
- Tokyo Portfolio - Can Foreigners Buy a Home in Japan?
- Housing Japan - Buying a House in Japan as an Expat
- Tokyo Portfolio - Housing loans for foreigners in Japan
- Japan Property Central - Purchase costs when buying real estate in Japan
- Numbeo - Cost of living - Compare countries
- Finder - Average property price by country around the world
- Numbeo - Cost of living - Compare cities
- Cheap Houses Japan - House prices in Japan
- Matcha - Buying a House in Japan? 6 Foreigner-Friendly Real Estate Companies
- Similar Web - Most Visited Real Estate Websites in Japan
Sources checked on 16-Oct-2023.
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
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