Upfront Costs of Buying a Condo in Japan: New vs. Resale

In Japan, the upfront costs of buying a condominium run about 3-6% of the purchase price for a newly built unit and 6-10% for a resale unit. On a JPY 30 million (approx. USD 200,000) resale condo that is roughly JPY 2.0-2.2 million (approx. USD 13,300-14,700); on a JPY 70 million (approx. USD 467,000) unit, roughly JPY 4.3-4.6 million (approx. USD 28,700-30,700). Crucially, part of that money - the deposit and half of the brokerage commission - must be paid in cash before the mortgage is ever drawn down.

This is a Japan-specific cost structure. Buyers arriving from the United States, the United Kingdom, Australia or continental Europe usually expect a familiar list of closing costs, and Japan does not match it. There is no title insurance industry, no escrow company in the American sense, no UK-style stamp duty land tax scaled to the purchase price, and no listing-agent-pays-both-sides commission convention. Instead there is a fixed-fee brokerage cap set by ministerial notification, a stamp duty measured in tens of thousands of yen rather than tens of thousands of dollars, a registration tax assessed on a government valuation rather than on the price you paid, and a judicial scrivener - not a solicitor or a title company - who handles the transfer at the closing table.

Many buyers plan their finances around the property price alone, then discover days before signing how much cash the transaction actually demands. This article models the upfront costs by price band, identifies which items must be paid in cash and on what date, and carries the analysis through to the monthly carrying cost after move-in and the tax relief measures in force for 2026. Every figure is sourced to a Japanese government or industry primary document.

Key takeaways

Budget 3-6% of the price for a new build and 6-10% for a resale unit. The percentage rises as the price falls, because several cost items are fixed rather than proportional.
The deposit, half the brokerage commission and the stamp duty all fall due before the mortgage is drawn - so they must come from your own cash.
After move-in, the real monthly figure is "loan repayment + management fee + repair reserve". For a new build in the Greater Tokyo area that averages just under JPY 200,000 (approx. USD 1,330) a month.
Under Japan's FY2026 tax reform, the mortgage tax credit was extended by five years and the 50% property-tax reduction on new builds now runs to 31 March 2031.
You can borrow the closing costs, but doing so puts you underwater immediately and blocks a future sale or refinance.

How much are the upfront costs? 3-6% for new builds, 6-10% for resale

In Japan, upfront costs on a condominium purchase are around 3-6% of the price for a new build and 6-10% for a resale unit. Those percentages are not rules - they are simply the result of stacking up stamp duty, brokerage commission, registration costs and mortgage-related fees. Memorising the ratio will not tell you whether the quotation in front of you is reasonable, which is why the rest of this article takes the stack apart item by item.

For comparison, a buyer in England typically faces stamp duty land tax as the single dominant line item, scaled steeply with price; a buyer in New York faces title insurance, mansion tax and attorney fees. Japan spreads the burden differently: the largest single item for most buyers is the brokerage commission, and the tax items are comparatively modest.

Why resale units cost more to buy than new builds

Most of the gap is the brokerage commission. A resale purchase puts a brokerage firm between seller and buyer, adding roughly 3.3% of the price including consumption tax. New condominiums in Japan are usually sold directly by the developer, so that 3.3% never arises. New builds carry their own charge instead: a shuzen tsumitate kikin (修繕積立基金, a one-off "repair reserve seed fund" collected at handover to capitalise the building's long-term repair account), typically JPY 200,000 to 800,000 (approx. USD 1,300-5,300).

That seed fund has no equivalent in most Western condominium markets, where a new owners' association simply begins collecting monthly dues from zero. Japan front-loads part of the reserve so that the building enters its first major repair cycle - usually around year twelve - with capital already in place.

How much cash do buyers in Japan actually put down?

"You can buy with zero down" and "what buyers actually contribute in cash" are two different questions. The Japan Housing Finance Agency's FY2024 Flat 35 User Survey (住宅金融支援機構「2024年度フラット35利用者調査」, Japanese only) records the following own-funds contributions. Flat 35 is Japan's long-term fixed-rate mortgage programme, securitised through the government-affiliated agency - the closest analogue to a US conforming loan.

New condominiums: a national average purchase price of JPY 55.922 million (5,592.2万円, approx. USD 373,000) against own funds of JPY 13.379 million (1,337.9万円, approx. USD 89,200), or 23.9%. In the Greater Tokyo area, JPY 65.693 million (6,569.3万円, approx. USD 438,000) against JPY 18.333 million (1,833.3万円, approx. USD 122,200), or 27.9%.
Resale condominiums: a national average purchase price of JPY 30.328 million (3,032.8万円, approx. USD 202,200) against own funds of JPY 5.244 million (524.4万円, approx. USD 35,000), or 17.3%. In the Greater Tokyo area, JPY 34.053 million (3,405.3万円, approx. USD 227,000) against JPY 6.468 million (646.8万円, approx. USD 43,100), or 19.0%.

"Own funds" covers both the down payment and the closing costs. The sample is limited to Flat 35 borrowers, but the pattern is clear: buyers are putting in roughly 20% of the price in cash. Overseas investors used to 70-80% loan-to-value on international mortgages should note that this is the practical norm even among domestic owner-occupiers with access to the most borrower-friendly product in the market.

What resale condominiums cost in Greater Tokyo right now

The East Japan Real Estate Information Network's Monthly Market Watch, June 2026 (東日本レインズ「月例マーケットウォッチ 2026年6月度」, Japanese only - REINS is Japan's designated, government-supervised listing exchange, the functional counterpart of a US MLS) put the contracted price for a resale condominium in Greater Tokyo at JPY 52.08 million (5,208万円, approx. USD 347,200), at JPY 826,400 per square metre (82.64万円/㎡, approx. USD 5,509/sqm, or roughly USD 512 per square foot), with an average exclusive floor area of 63.02 sqm and an average building age of 27.48 years. On that average profile, upfront costs would run about JPY 3.15-3.4 million (315万〜340万円, approx. USD 21,000-22,700).

The 27.48-year average age deserves a note for international readers: Japanese buyers do not treat a late-1990s reinforced-concrete condominium as old stock. Post-1981 buildings meet the current seismic code, and well-managed towers of that vintage trade actively.

Price-band simulation: upfront costs from JPY 10 million to JPY 100 million

For a resale condominium bought through a broker in Japan, budget roughly JPY 850,000-1,000,000 (約85〜100万円, approx. USD 5,700-6,700) on a JPY 10 million property, JPY 2.0-2.2 million (約200〜220万円, approx. USD 13,300-14,700) on a JPY 30 million property, JPY 4.3-4.6 million (約430〜460万円, approx. USD 28,700-30,700) on a JPY 70 million property, and JPY 6.05-6.4 million (約605〜640万円, approx. USD 40,300-42,700) on a JPY 100 million property. The percentage is highest at the bottom of the market because several cost items are fixed and do not scale with price - the same regressive pattern you see in low-value transactions anywhere, but sharper in Japan because the judicial scrivener fee and the minimum brokerage entitlement are both effectively flat.

Assumptions used in this model: 80% loan-to-value; mortgage fees calculated as an arrangement fee on the percentage-based model (loan amount x 2.2%) plus the stamp duty on the loan agreement; registration tax calculated with the residential-property reductions applied; the fixed-asset tax assessed value taken at roughly 60% of the sale price (split 40% land / 60% building); judicial scrivener fees totalling about JPY 100,000 (approx. USD 670); and a Greater Tokyo resale property assumed throughout. Actual figures vary by property and by lender. Currency conversions use USD 1 ≈ JPY 150.

Property price	Stamp duty (after reduction)	Brokerage commission (cap, tax included)	Registration costs	Mortgage fees (2.2% model)	Resale total (estimate)	New build total (estimate)
JPY 10 million (1,000万円 / USD 66,700)	JPY 5,000 (5,000円)	JPY 396,000 (39.6万円)	approx. JPY 160,000 (約16万円)	approx. JPY 190,000 (約19万円)	approx. JPY 850,000-1,000,000 (約85〜100万円 / 8.5-10.0%)	approx. JPY 650,000-1,000,000 (約65〜100万円)
JPY 20 million (2,000万円 / USD 133,300)	JPY 10,000 (1万円)	JPY 726,000 (72.6万円)	approx. JPY 210,000 (約21万円)	approx. JPY 370,000 (約37万円)	approx. JPY 1.4-1.6 million (約140〜160万円 / 7.0-8.0%)	approx. JPY 900,000-1.25 million (約90〜125万円)
JPY 30 million (3,000万円 / USD 200,000)	JPY 10,000 (1万円)	JPY 1,056,000 (105.6万円)	approx. JPY 270,000 (約27万円)	approx. JPY 550,000 (約55万円)	approx. JPY 2.0-2.2 million (約200〜220万円 / 6.7-7.3%)	approx. JPY 1.15-1.5 million (約115〜150万円)
JPY 40 million (4,000万円 / USD 266,700)	JPY 10,000 (1万円)	JPY 1,386,000 (138.6万円)	approx. JPY 320,000 (約32万円)	approx. JPY 720,000 (約72万円)	approx. JPY 2.55-2.75 million (約255〜275万円 / 6.4-6.9%)	approx. JPY 1.4-1.8 million (約140〜180万円)
JPY 50 million (5,000万円 / USD 333,300)	JPY 10,000 (1万円)	JPY 1,716,000 (171.6万円)	approx. JPY 380,000 (約38万円)	approx. JPY 900,000 (約90万円)	approx. JPY 3.15-3.4 million (約315〜340万円 / 6.3-6.8%)	approx. JPY 1.7-2.15 million (約170〜215万円)
JPY 70 million (7,000万円 / USD 466,700)	JPY 30,000 (3万円)	JPY 2,376,000 (237.6万円)	approx. JPY 490,000 (約49万円)	approx. JPY 1,290,000 (約129万円)	approx. JPY 4.3-4.6 million (約430〜460万円 / 6.1-6.6%)	approx. JPY 2.2-2.8 million (約220〜280万円)
JPY 100 million (1億円 / USD 666,700)	JPY 30,000 (3万円)	JPY 3,366,000 (336.6万円)	approx. JPY 650,000 (約65万円)	approx. JPY 1,820,000 (約182万円)	approx. JPY 6.05-6.4 million (約605〜640万円 / 6.1-6.4%)	approx. JPY 3.1-3.8 million (約310〜380万円)

The total columns also absorb fire insurance premiums and settlement adjustments, together roughly JPY 100,000 to 500,000 (10万〜50万円, approx. USD 670-3,300). The new build column excludes the brokerage commission and adds the repair reserve seed fund. Moving costs, furniture and the real estate acquisition tax are not included.

The brokerage commission exception that catches out buyers under JPY 8 million

On a JPY 5 million (500万円, approx. USD 33,300) resale condominium, the shortcut formula - price x 3.3% + JPY 66,000 (6.6万円) - produces a commission cap of JPY 231,000 (23.1万円). Yet the invoice may say JPY 330,000 (33万円). That is not overcharging. Article 7 (第七) of Japan's commission notification - the notification on brokerage remuneration (国土交通省「宅地建物取引業者が受けることができる報酬の額」, 1970 Ministry of Construction Notification No. 1552, last amended 21 June 2024, Japanese only) - permits a broker handling a "low-value vacant home or similar" (低廉な空家等) priced at JPY 8 million (800万円) or less to receive up to JPY 300,000 multiplied by 1.1, that is JPY 330,000 (33万円).

At exactly JPY 8 million the ordinary cap is also JPY 330,000, so there is no difference; below that, the gap widens as the price falls. This is a legitimate statutory exception introduced to keep brokers willing to handle Japan's growing stock of low-value vacant homes - a policy response to the akiya (空き家, vacant house) problem that has no parallel in most Western markets, where low-value transactions are simply declined. Ask for the calculation basis before signing the brokerage agreement. Because fixed costs dominate at the bottom of the market, even a JPY 10 million (1,000万円) property carries a cost ratio of 8.5-10%.

What changes at the JPY 70 million level

Above JPY 50 million (5,000万円), the stamp duty steps up from JPY 10,000 (1万円) to JPY 30,000 (3万円) and registration costs move to around JPY 500,000 (50万円). The bigger constraint is the borrowing cap on Japan's mortgage tax credit. For occupancy in 2026, even a certified long-life quality housing or low-carbon new build is capped at JPY 45 million (4,500万円; JPY 50 million / 5,000万円 for households with children), so buying a JPY 70 million property at 80% LTV pushes more than JPY 10 million (1,000万円) of the loan outside the credit entirely. If you are weighing the financing structure, our guide to mortgage interest rate types and tax relief in Japan covers the mechanics.

Cash needed on contract day: deposit, stamp duty and half the commission

On the day you sign the sale and purchase agreement in Japan, you need cash for three things: the deposit, the stamp duty, and half the brokerage commission. The mortgage is not drawn until the handover date, so none of the borrowed money is available yet. This timing gap is the real reason buyers say they "cannot afford the upfront costs".

Readers coming from the United States will notice the absence of escrow. In Japan there is no neutral escrow agent holding funds between contract and closing; the deposit generally goes to the seller directly, which is precisely why the protections described below exist in statute.

The deposit is 5-10% of the price - but there is a statutory ceiling

The tetsukekin (手付金, contract deposit) typically runs 5-10% of the price, so JPY 1.5-3 million (150万〜300万円, approx. USD 10,000-20,000) on a JPY 30 million property. It is credited against the purchase price, but the cash moves at contract signing. Where the seller is a licensed real estate business, Article 39(1) of the Building Lots and Buildings Transaction Business Act (宅地建物取引業法, Japan's real estate brokerage licensing statute, Japanese only) prohibits that seller from accepting a deposit exceeding two tenths of the price. Article 39(2) deems every deposit - whatever the parties call it - to be a kaiyaku tetsuke (解約手付, rescission deposit): the buyer may walk away by forfeiting it, and the professional seller may walk away by actually tendering double.

The consequence is often missed. Negotiating a smaller deposit lightens contract-day cash, but it also means the seller can walk away for less. Unlike a US contract where earnest money sits in escrow and specific performance remains on the table, Japan's default rule converts the deposit into a mutual, priced exit option. Article 41 of the same Act further provides that for a property whose construction is not yet complete, a professional seller cannot accept deposit funds without protective measures unless the amount is both 5% or less of the price and within the amount set by cabinet order, JPY 10 million (1,000万円); for completed properties, Article 41-2 sets the threshold at 10%. Whether those protective measures are in place is disclosed in the important matters explanation before signing.

Stamp duty: use the reduced rate, and note that the loan agreement is excluded

The point to grasp is that you calculate on the reduced rate, not the statutory rate. Under the National Tax Agency's Tax Answer No.7108 (国税庁タックスアンサーNo.7108, Japanese only), the reduction applies to real property transfer agreements executed between 1 April 2014 and 31 March 2027. Japan's inshizei (印紙税, stamp duty) is a document tax paid by affixing a revenue stamp to the physical contract - conceptually closer to the old UK stamp duty on instruments than to today's price-scaled transfer taxes, and remarkably small in absolute terms.

Contract amount	Statutory rate	After reduction
Over JPY 5 million up to JPY 10 million (500万円超 1,000万円以下)	JPY 10,000 (1万円)	JPY 5,000 (5,000円)
Over JPY 10 million up to JPY 50 million (1,000万円超 5,000万円以下)	JPY 20,000 (2万円)	JPY 10,000 (1万円)
Over JPY 50 million up to JPY 100 million (5,000万円超 1億円以下)	JPY 60,000 (6万円)	JPY 30,000 (3万円)
Over JPY 100 million up to JPY 500 million (1億円超 5億円以下)	JPY 100,000 (10万円)	JPY 60,000 (6万円)

The loan agreement is not covered by the reduction. The kinsen shohi taishaku keiyakusho (金銭消費貸借契約書, the mortgage loan agreement) falls under document category 1-3 in the National Tax Agency's Tax Answer No.7140 (国税庁タックスアンサーNo.7140, Japanese only): JPY 20,000 (2万円) on borrowings over JPY 10 million up to JPY 50 million, and JPY 60,000 (6万円) over JPY 50 million up to JPY 100 million. Note also that where no paper contract is created - that is, a fully electronic contract - stamp duty is generally treated as not arising, since the tax attaches to the physical document. We cover this in detail in our guide to electronic contracts and remote disclosure in Japanese property transactions.

The brokerage commission is a ceiling, not a price list

The cap is set by Article 2 (第二) of the notification cited above: 5.5% on the portion up to JPY 2 million (200万円以下), 4.4% on the portion over JPY 2 million up to JPY 4 million (200万円超400万円以下), and 3.3% on the portion above JPY 4 million (400万円超), all inclusive of consumption tax and equivalent. The shortcut formula is merely those three brackets collapsed into one line; because the notification says "within" these amounts, they are a ceiling, not a tariff. That said, a discount should be judged alongside the volume of service the brokerage actually provides. Our analysis in how resale condo brokerage caps are calculated and negotiated sets out the framework.

Payment is customarily split into halves, at contract and at settlement. On a JPY 30 million property that means JPY 528,000 (52.8万円, approx. USD 3,500) on contract day. Add a JPY 1.5 million (150万円) deposit and JPY 10,000 (1万円) of stamp duty, and just over JPY 2 million (200万円強, approx. USD 13,300) moves on that single day - before a single yen of mortgage money is available.

Cash needed at handover: registration costs and mortgage fees

On the handover (settlement) date you need registration costs, mortgage fees, the fire insurance premium, the settlement adjustment for property taxes, and the pro-rated management fees. This is the day the mortgage is drawn, so borrowed funds are finally available.

One structural difference from Anglo-American practice is worth stating up front: Japan has no title insurance market. The public register maintained by the Legal Affairs Bureau, combined with a shiho shoshi (司法書士, judicial scrivener - a licensed registration specialist, roughly the function split between a conveyancing solicitor and a title company in other markets), does the work that title insurance does elsewhere. That is why the cost line here is a tax plus a professional fee rather than an insurance premium.

Registration costs = registration and licence tax + judicial scrivener fee

The tax base for the toroku menkyozei (登録免許税, registration and licence tax) is the fixed-asset tax assessed value, not the sale price. That single fact makes Japanese registration tax far cheaper than a naive comparison with UK stamp duty land tax or a US transfer tax would suggest, because the assessed value typically sits near 60% of the market price. Rates are as set out in the National Tax Agency's notice on reduced registration and licence tax rates (April 2026) (国税庁, Japanese only) and the Ministry of Land, Infrastructure, Transport and Tourism's special measures for residential buildings (国土交通省, MLIT, Japanese only).

Type of registration	Statutory rate	Reduced rate	Expiry
Transfer of land ownership (sale)	2.0%	1.5%	31 March 2029
Preservation of building ownership (new build)	0.4%	0.15%	31 March 2027
Transfer of building ownership (resale)	2.0%	0.3%	31 March 2027
Creation of a mortgage charge	0.4%	0.1%	31 March 2027

The 1.5% land rate was extended by three years under the FY2026 tax reform and now runs to 31 March 2029. Older expiry dates sometimes persist on the National Tax Agency's Tax Answer pages, so confirm extensions against the notice above. To claim the building and mortgage reductions you must attach a jutaku-yo kaoku shomeisho (住宅用家屋証明書, a residential building certificate issued by the municipality, confirming among other things that the floor area is 50 sqm or more) to the registration application, and register within one year of construction or acquisition. For resale units, the building must have been constructed on or after 1 January 1982 or must satisfy current seismic standards. None of this is applied automatically - it is claimed, and an overseas buyer relying on a broker who has never handled the paperwork can lose the reduction by default.

Actual judicial scrivener fees are published in the Japan Federation of Shiho-Shoshi Lawyer's Associations' survey on remuneration (conducted March 2024) (日本司法書士会連合会, Japanese only). For a model case with a combined assessed value of JPY 10 million (1,000万円) covering one parcel of land and one building, an ownership transfer registration on sale averaged JPY 56,678, and a mortgage registration for a JPY 10 million (1,000万円) secured claim averaged JPY 42,699. These are averages for a model scenario and vary with travel and complexity. For international readers, note the scale: the professional handling your title transfer in Japan charges under USD 400 for the core work, against several thousand dollars for equivalent conveyancing in most Western markets.

Mortgage fees: the structure you choose can swing the cost by hundreds of thousands of yen

Arrangement fee: either a flat model (JPY 30,000 to the JPY 50,000s / 3万〜5万円台, approx. USD 200-370) or a percentage model (loan amount x 2.2%). On a JPY 30 million (3,000万円) loan, the percentage model costs JPY 660,000 (66万円, approx. USD 4,400).
Guarantee fee: either the sotowaku (外枠) method, paid as a lump sum at drawdown, or the uchiwaku (内枠) method, which adds around 0.2% to the interest rate. The lump-sum amount depends on the loan term, so obtain an actual quotation. Flat 35 requires no guarantee fee at all.
Group credit life insurance: in Japan this danshin (団信) cover is usually built into the interest rate rather than sold separately as it is in many markets; illness riders are priced as a rate add-on.
Registration tax on the mortgage charge: loan amount x 0.1%.

Fire insurance, tax settlement adjustments and the repair reserve seed fund

For a condominium, insurance covers only the exclusively owned portion - the interior of your unit - because the common areas are insured by the management association. Premiums are therefore lower than for a detached house. According to the General Insurance Rating Organization of Japan, reference pure premium rates for fire insurance were raised by a national average of 13.0% in the June 2023 filing (損害保険料率算出機構, Japanese only). Reference pure premium rates are not the premium you pay, but the upward trend - driven by Japan's typhoon and flood exposure - should be built into your plan.

Fixed-asset tax is levied for the full year on whoever owns the property on 1 January, so on a mid-year handover it is commercial custom for the buyer to reimburse the seller pro rata. This settlement is not a legal obligation, and the start date differs by region. The Kanto region generally uses 1 January and the Kansai region 1 April, so an identical handover date produces a different reimbursement depending on where the property sits. Buyers who apply Kanto assumptions to a Kansai property really do get caught out, so check the contract. Management fees and the repair reserve are pro-rated the same way, and for a new build there is additionally the repair reserve seed fund of roughly JPY 200,000 to 800,000 (20万〜80万円, approx. USD 1,300-5,300).

Bills that arrive after move-in: acquisition tax and your first property tax

Handover does not end the payments. The hardest item to predict is the fudosan shutokuzei (不動産取得税, real estate acquisition tax) - a prefectural one-off tax on acquiring property, comparable in function to a transfer or conveyance duty elsewhere, except that in Japan the assessment notice arrives months later, long after most buyers have stopped thinking about the purchase. The standard statutory rate is 4%, but residential buildings and all land are reduced to 3% (through 31 March 2027). The tax base is the value on the fixed-asset tax register, and the reliefs are as follows (Ministry of Internal Affairs and Communications / MLIT).

New residential buildings receive a deduction of JPY 12 million (1,200万円, approx. USD 80,000) from the tax base. Resale homes receive up to JPY 12 million (1,200万円) depending on the year of construction.
Residential land and commercial land have the taxable value compressed to one half of the assessed value.
For residential land, the tax due is further reduced by the greater of JPY 1.5 million (150万円, approx. USD 10,000) or the land value corresponding to twice the floor area (capped at 200 sqm), multiplied by the tax rate.

Stack these together and the tax on a normally sized condominium frequently comes out at zero. But some prefectures will not apply the relief unless you file for it. Confirm with the prefectural tax office after acquisition - this is one of the most common ways an absentee or first-time buyer in Japan pays tax they did not owe. The procedure is set out in our guide to real estate acquisition tax relief and refund claims.

Separately, from the year after handover, fixed-asset tax and city planning tax are assessed in your own name (standard rate 1.4%, with city planning tax capped at 0.3%). One practical note: moving costs in Japan swing sharply between the March-April peak season, when the school and corporate year turns over, and quieter months. And curtains from a previous home rarely fit new windows, because Japanese window dimensions are not standardised the way they are in much of Europe - measure at the viewing and you can budget for it.

What does a condo in Japan cost per month and per year after purchase?

Monthly outgoings are not just the loan repayment. The real household burden is "repayment + management fee + repair reserve + parking", and for a new build in Greater Tokyo that comes to just under JPY 200,000 (20万円弱, approx. USD 1,330) a month.

Actual monthly totals

The FY2024 Flat 35 User Survey cited earlier reports planned monthly repayments of JPY 159,500 nationally and JPY 172,500 in Greater Tokyo for new condominiums (total repayment burden ratios of 22.2% and 23.1% respectively), and JPY 93,400 nationally and JPY 101,200 in Greater Tokyo for resale units (19.7% and 20.3%). In US dollar terms that is roughly USD 1,063 and USD 1,150 for new builds, and USD 623 and USD 675 for resale.

On top of that come the management fee and repair reserve. According to MLIT's FY2023 Comprehensive Survey on Condominiums (国土交通省「令和5年度マンション総合調査結果」, Japanese only), the average per unit per month - excluding amounts covered by parking revenue - is a management fee of JPY 11,503 (approx. USD 77) and a repair reserve of JPY 13,054 (approx. USD 87). So a new build in Greater Tokyo works out at "JPY 172,500 + JPY 25,000 = just under JPY 200,000 a month" (17.25万円＋2.5万円＝月20万円弱), and a resale unit at "JPY 101,000 + JPY 25,000 = around JPY 126,000 a month" (10.1万円＋2.5万円＝月12.6万円前後, approx. USD 840). These two charges are the Japanese equivalent of HOA dues in the United States or a service charge plus sinking fund in the United Kingdom, but they are billed separately and - importantly - the repair reserve is legally earmarked. The breakdown is covered in condominium management fees and how they differ from the repair reserve.

Check before you buy whether the repair reserve is set too low

This is the single highest-value check you can perform before purchase, and it is where overseas buyers most often misread a Japanese listing. A building whose repair reserve is below the market range is not a bargain - it may simply be deferring the bill. MLIT's Guidelines on Condominium Repair Reserve Funds (revised June 2024) (国土交通省「マンションの修繕積立金に関するガイドライン」, Japanese only) publish benchmark monthly amounts per square metre of exclusive floor area.

Storeys above ground / total floor area	Range covering two thirds of cases	Average
Under 20 storeys, under 5,000 sqm	JPY 235-430 per sqm per month (235〜430円/㎡・月, approx. USD 1.57-2.87)	JPY 335 per sqm per month (335円/㎡・月, approx. USD 2.23)
Under 20 storeys, 5,000 to under 10,000 sqm	JPY 170-320 per sqm per month (170〜320円/㎡・月, approx. USD 1.13-2.13)	JPY 252 per sqm per month (252円/㎡・月, approx. USD 1.68)
Under 20 storeys, 10,000 to under 20,000 sqm	JPY 200-330 per sqm per month (200〜330円/㎡・月, approx. USD 1.33-2.20)	JPY 271 per sqm per month (271円/㎡・月, approx. USD 1.81)
Under 20 storeys, 20,000 sqm or more	JPY 190-325 per sqm per month (190〜325円/㎡・月, approx. USD 1.27-2.17)	JPY 255 per sqm per month (255円/㎡・月, approx. USD 1.70)
20 storeys or more	JPY 240-410 per sqm per month (240〜410円/㎡・月, approx. USD 1.60-2.73)	JPY 338 per sqm per month (338円/㎡・月, approx. USD 2.25)

The check has three steps. First, divide the unit's monthly repair reserve by its exclusive floor area to get a per-square-metre figure, and compare it against the row matching the building's storey count and total floor area. If it falls short, request the long-term repair plan and the important matters investigation report, and check for planned increases and one-off levies. If there is mechanical parking, add (repair cost per bay x number of bays) / total exclusive floor area.

For example, a 70 sqm unit charging JPY 6,000 (月6,000円, approx. USD 40) a month works out at about JPY 86 per sqm (約86円). For a building under 20 storeys with total floor area under 5,000 sqm, that is less than half the JPY 235 lower bound. At that level, either a more-than-doubling increase is already planned, or the building will run short of funds when the major repair cycle arrives. A low repair reserve is not a discount; it is a deferred invoice. We set out how to read this in repair reserve benchmarks and the risk of future increases.

On an annual cycle, expect fixed-asset tax and city planning tax, fire insurance renewals, one-off levies for major repair works, and revisions to parking charges. If you would like an independent eye on how a building is actually being managed - particularly valuable if you are buying from overseas and cannot attend the management association's meetings - INA&Associates Inc. offers a free consultation.

What changed in 2026 under Japan's FY2026 tax reform

If you are taking occupancy or acquiring in 2026, build your plan on the FY2026 tax reform (令和8年度税制改正). Japan revises its housing tax reliefs annually, on a fiscal year running from April - a cadence that surprises buyers from jurisdictions where property tax rules sit still for a decade. Below are the parts of MLIT's reform outline that bear on upfront costs and holding costs.

The mortgage tax credit is extended five years, with resale homes enhanced

The credit rate stays at 0.7%, and the scheme has been extended by five years. Japan's jutaku loan genzei (住宅ローン減税) is a direct credit against income tax based on the year-end outstanding loan balance up to a cap - not a deduction of interest paid as in the United States - which is why the borrowing caps below matter so much. Figures in parentheses are the caps for households with children or a young couple (a household with a child under 19, or where either spouse is under 40).

Housing category	New build / renovated resale	Existing (resale) home
Certified long-life quality housing / low-carbon housing	JPY 45 million (4,500万円; JPY 50 million / 5,000万円) x 13 years	JPY 35 million (3,500万円; JPY 45 million / 4,500万円) x 13 years
ZEH-level energy-efficient housing	JPY 35 million (3,500万円; JPY 45 million / 4,500万円) x 13 years	JPY 35 million (3,500万円; JPY 45 million / 4,500万円) x 13 years
Housing meeting energy efficiency standards	JPY 20 million (2,000万円; JPY 30 million / 3,000万円) x 13 years (for 2026 and 2027 occupancy)	JPY 20 million (2,000万円; JPY 30 million / 3,000万円) x 13 years
Other housing	Not eligible	JPY 20 million (2,000万円) x 10 years

The income ceiling is JPY 20 million (2,000万円, approx. USD 133,300) and the floor area requirement is 40 sqm or more (50 sqm or more for those with income above JPY 10 million / 1,000万円 and for users of the enhanced caps). New builds meeting only the energy efficiency standards become ineligible in principle from 2028 (令和10年) occupancy; those that received building confirmation by the end of 2027 and similar cases retain JPY 20 million (2,000万円) x 10 years. From 2028 occupancy onward, new homes in designated disaster red zones are also excluded - a provision with no close Western analogue, reflecting Japan's flood and landslide hazard mapping. For anyone considering a resale unit, the expansion of the existing-home cap to JPY 35 million (3,500万円; JPY 45 million / 4,500万円 for households with children) x 13 years is the headline change. The first year requires a tax return, so review the first-year tax return procedure for the mortgage tax credit before you file.

The 50% property tax reduction on new builds runs to 31 March 2031

The measure halving fixed-asset tax on newly built homes - five years for mid-to-high-rise fire-resistant buildings such as condominiums, three years for detached houses - has been extended by five years to 31 March 2031. The minimum floor area requirement has also been relaxed from 50 sqm to 40 sqm in principle, while homes within certain designated hazard areas are removed from eligibility. MLIT estimates the benefit on a JPY 25 million (2,500万円, approx. USD 166,700) home at about JPY 270,000 over three years (約27万円, approx. USD 1,800): JPY 182,000 a year without the measure (年18.2万円, approx. USD 1,213) against JPY 91,000 a year with it (年9.1万円, approx. USD 607). You will often see this described as "half price for five years on new builds" - but it is three years for a detached house and five for a condominium, and the distinction matters when comparing the two.

Deadlines for registration tax, acquisition tax and the gift exemption

1.5% registration tax on land ownership transfers: through 31 March 2029 (extended by three years)
Reduced registration tax on residential buildings, and the 3% acquisition tax rate with the JPY 12 million (1,200万円) deduction: through 31 March 2027

Financial help from parents runs through Japan's gift tax exemption for funds used to acquire a home, which covers gifts made up to 31 December 2026. According to National Tax Agency Tax Answer No.4508, the ceiling is JPY 10 million (1,000万円, approx. USD 66,700) for energy-efficient and equivalent homes and JPY 5 million (500万円, approx. USD 33,300) otherwise. The recipient must be 18 or over as at 1 January of the year of the gift, with total income of JPY 20 million (2,000万円) or less. Two warnings. A return must be filed even when the gift tax due is zero - the exemption is claimed, not automatic, and this is the single most common way families in Japan lose it. And the funds are restricted to consideration for acquiring the home: they cannot be spent on furniture, appliances or loan repayments. Note too that Japan's gift tax is levied on the recipient, not the donor, unlike the US federal gift tax - so a cross-border family gift needs checking on both sides.

Five practical ways to reduce your upfront costs

Upfront costs divide into what you can cut and what you cannot. Here are five where the decision rule is clear. Unlike markets where "shopping around for closing costs" mostly means comparing lenders, in Japan several of these levers are statutory or procedural - which makes them more reliable, and easier to miss.

Sign the purchase agreement electronically: on a JPY 30 million (3,000万円) property, that is JPY 10,000 (1万円) on the sale agreement plus JPY 20,000 (2万円) on the loan agreement, a JPY 30,000 (3万円, approx. USD 200) saving. Because stamp duty attaches to the paper instrument, going paperless removes it entirely. Confirm at the pre-approval stage whether both the brokerage and the lender support it.
Compare the flat arrangement fee against the percentage model on actual figures: the 2.2% percentage model gets worse as the loan grows - on a JPY 56 million (5,600万円, approx. USD 373,300) loan it costs JPY 1.23 million (123万円, approx. USD 8,200). The lump-sum guarantee fee structure can, by contrast, return the unused portion on early repayment. Ask each lender to model the total cost on "term of X years, with early repayment".
Treat the brokerage commission as a ceiling, not a price: the notification says "within" those amounts. But negotiate with the level of service in view. A "zero commission" offer means the firm is being paid by the seller side instead - so look at who is paying the broker before you judge the deal. This dual-agency structure is legal in Japan but restricted or prohibited in several other jurisdictions, and it is worth understanding whose interest your broker represents.
Narrow the fire insurance cover and consider a longer policy term: on a floor where flood risk is negligible, dropping water damage cover reduces the premium. Cut too far and the policy will not respond when you need it. Decide by reference to the hazard map and the floor level.
Remember that reliefs must be claimed: the registration tax reduction needs the residential building certificate, the acquisition tax relief needs a filing with the prefecture, and the mortgage tax credit needs a first-year tax return. Before settlement, establish which relief, claimed by whom, and by when.

Realistic options if you cannot cover the upfront costs

Closing cost loans exist in Japan, but they carry side effects, so we would suggest revisiting the plan before reaching for more borrowing.

A shohiyo loan (諸費用ローン, a supplementary loan covering closing costs) prices higher than the mortgage itself. The problem is not only the larger total repayment. Because you are borrowing beyond the property price, you are likely to be underwater from the moment you complete - and if a job transfer or a change of employment forces a sale, you cannot clear the outstanding balance, while refinancing approval also becomes harder. Japan's condominium market is liquid but not universally appreciating; outside the strongest central wards, an immediate negative equity position can take years to unwind.

Speaking frankly, rather than borrowing the closing costs and rushing the purchase, we believe spending six months to a year building up cash leaves you with more in the end. Not creating a position you cannot exit is the single most effective form of asset protection.

Financial support from family runs through the gift exemption described above, which applies to gifts made by 31 December 2026. If you structure it as a loan instead, draw up a loan agreement and keep a record of repayments. A transfer of funds with neither a contract nor a repayment history can be treated as a gift for tax purposes - and Japan's tax authority does examine intra-family transfers around property purchases.

Negotiating a smaller deposit lightens contract day, but it also puts the seller in a position to rescind for less. A budget review is more effective. Total repayment burden ratios among Flat 35 users are 22.2% for new condominiums (23.1% in Greater Tokyo) and 19.7% for resale (20.3% in Greater Tokyo). A plan running well above those levels is a signal that the repayment schedule itself - not just the upfront costs - does not work.

What to avoid outright is funding the deposit with a card loan or an unsecured personal loan. Mortgage underwriting in Japan pulls your credit information, and recent borrowing counts against you on both the debt-service ratio and the credit assessment.

Buying a condo as an investment is a different calculation entirely

Everything above assumes you will live in the property. Investment purchases operate under a different set of rules in Japan and cannot be modelled with the same numbers. There are three differences - and for overseas buyers, who are far more likely to be purchasing for yield than for occupancy, this is the section that matters most.

Different loan: residential mortgages are unavailable; you use a real estate investment loan, at meaningfully higher rates.
Reliefs do not apply: the mortgage tax credit, the reduced registration tax on residential buildings, and the residential deduction for acquisition tax all require owner-occupation, so as a rule none of them apply.
Higher cost ratio: because registration tax reverts to the statutory rates, upfront costs tend to land at roughly 7-10% of the property price rather than 6-10%.

For the detail see upfront and running costs of condominium investment in Japan, and for resale investment stock, the full picture of costs when buying a resale condominium.

Ten things to confirm before you sign

We have distilled the article into a question list for your brokerage and your lender. If you are buying from overseas, send it in writing - a documented answer is worth far more than a verbal reassurance at the viewing.

Have you received an itemised quotation for the closing costs, rather than a single "lump sum" line?
What is the deposit amount, and where the seller is a licensed business, will protective measures be put in place?
Is the stamp duty quoted at the reduced rate? Is an electronic contract available?
What is the calculation basis and payment timing for the brokerage commission? If the price is JPY 8 million (800万円) or below, does the low-value vacant home exception apply?
Does the registration quotation separate the registration and licence tax from the judicial scrivener's fee?
Is the arrangement fee flat or percentage-based? Is the guarantee fee lump-sum or rate-loaded? Have you compared them on total cost?
What is the scope of the fire insurance cover (is water damage needed?) and the policy term?
Does the property tax settlement adjustment start from 1 January or 1 April?
Does the repair reserve, per square metre, fall within the guideline range? Have you seen the long-term repair plan and the important matters investigation report?
For a new build, how much is the repair reserve seed fund? For a resale unit, when was the last major repair and when is the next one due?

Items 9 and 10 determine your future outgoings more than anything else on this list. If you would like a second opinion, please feel free to contact INA&Associates Inc.

Frequently asked questions

Q1. What are the closing costs on a JPY 10 million resale condominium?

A. Roughly JPY 850,000 to 1,000,000 (約85万〜100万円, approx. USD 5,700-6,700), which is 8.5-10% of the price - a higher ratio than at the top of the market. The components are a brokerage commission of JPY 396,000 (39.6万円), registration costs of about JPY 160,000 (約16万円), mortgage fees of about JPY 190,000 (約19万円), stamp duty of JPY 5,000 (5,000円), plus the fire insurance premium and settlement adjustments.

Q2. And on a JPY 70 million resale condominium?

A. Roughly JPY 4.3 to 4.6 million (約430万〜460万円, approx. USD 28,700-30,700), or about 6.1-6.6% of the price. The main components are a brokerage commission of JPY 2,376,000 (237.6万円), mortgage fees of about JPY 1,290,000 (約129万円, the 2.2% arrangement fee plus stamp duty), registration costs of about JPY 490,000 (約49万円), and stamp duty of JPY 30,000 (3万円). Any borrowing above the mortgage tax credit cap falls outside the credit.

Q3. What does a condo in Japan cost per month after purchase?

A. Just under JPY 200,000 (20万円弱, approx. USD 1,330) a month is the average for a new build in Greater Tokyo. That is the FY2024 Flat 35 User Survey's planned repayment for a Greater Tokyo condominium of JPY 172,500, plus a management fee of JPY 11,503 and a repair reserve of JPY 13,054. For a resale unit it is around JPY 126,000 (12.6万円, approx. USD 840) a month.

Q4. Can you buy a condo in Japan with no down payment?

A. It is possible as a matter of product design, but it is not the norm. In the Flat 35 User Survey, buyers of new condominiums contributed own funds equal to 23.9% of the purchase price (27.9% in Greater Tokyo), and buyers of resale units 17.3%. With zero down, repayments are heavier and the outstanding balance exceeds the sale price when you come to sell.

Q5. Can the upfront costs be rolled into the loan?

A. Some lenders offer a closing cost loan. But the rate is higher than the mortgage and the total repayment increases. Because you borrow beyond the property price, the outstanding balance is likely to exceed the resale value immediately after purchase, and refinancing approval becomes harder to obtain.

Q6. Why do resale condominiums cost more to buy than new builds?

A. The brokerage commission is added. A resale purchase goes through a brokerage, so roughly 3.3% of the price including tax applies; new builds are usually bought directly from the developer, so it does not arise. New builds do, however, carry a repair reserve seed fund of roughly JPY 200,000 to 800,000 (20万〜80万円, approx. USD 1,300-5,300).

The upfront costs of buying a condominium in Japan cannot be judged from a percentage rule of thumb alone. Use the price-band model and the checklist in this article to annotate your quotation line by line: what is this charge, when is it due, and does it have to be cash? Once you have gone that far, the financial plan stops moving under you - and for a buyer working across a language barrier and a legal system built on different assumptions, that clarity is worth more than any single saving.

References and sources

The following are Japanese government and industry primary sources. All are published in Japanese only; the original titles are given alongside the English glosses.