Buying an Apartment in Tokyo
What apartment-hunting and buying was like in Tokyo, how much apartments cost in the city, and some things that should be considered.
Buying an apartment in Japan was one of the biggest decisions in my life and also one of the most tedious and length processes I’ve ever been a part of. But alas, I, someone who often overthinks and resists taking big risks, decided to pull the trigger and buy an apartment in central Tokyo.
Why we bought an apartment in Tokyo
Japan is a second home to me. It’s a place that I have a desire and need to visit, not just to be a tourist but to go about my daily life. My wife is Japanese and from Tokyo, so it would be a place where we’d come back to anyways, with or without a home.
I also recently started my own company with a Japanese corporation and do a lot of work with and in Japan.
In short, it made sense to have a place in Tokyo.
How much do apartments in central Tokyo cost?
Tokyo is one of the biggest cities in the world both in population and economic size. It’s a dense city with homes on the smaller side because space comes at a premium.
Factors that contribute to the cost are things like whether or not it’s in Tokyo’s main 23 wards, and if so, which ward, what the nearest train station is, how far it is from the train station, what type of construction the building is and the age of the apartment. The difference in what you can get for your money can be quite big
For example, it would be typical for a brand new 1-bedroom apartment in desirable wards such as Minato and Shibuya to start at around ¥128M. On the other hand, one outside the main 23 wards to start around ¥40M.
Housing for sale in central Tokyo. Red dots are ¥100M+, blue dots are ¥20M and under. - At Home
Many locals actually opt to purchase homes in more affordable areas that are outside of the main 23 wards.
Our budget was roughly US $325-400k. This amount meant that it would be a struggle to get a 1LDK (1 bedroom with living room and kitchen) in a highly desirable place in central Tokyo that wasn’t too old. For most Tokyo residents with a similar budget, it would make sense to live further away from central areas or from stations.
With this budget, you could get a lived-in 2-bedroom condo further out from central Tokyo or a brand new 2-story house in places such as the small city I lived in Fukuoka.
What we considered
Location-first
Because we don’t plan on being in Japan for most of the year, we had the option to be more flexible with the size of the apartment. We decided to sacrifice the space a little and prioritize location.
This would add a lot more convenience to our stays while also helping to limit depreciation in home value, which often happens in Japan.
Our target location was the Tomigaya area, an area that we had visited often while living in Tokyo. Over the years, this “Inner Shibuya” neighborhood has grown significantly in popularity with its highly-rated eateries and coffee shops, and despite it being just outside of Shibuya and Harajuku, it still retains a quaint and somewhat sophisticated vibe.
In 2023, Time Out magazine said that “Tomigaya is one of the world's top 10 coolest neighbourhoods”.
Earthquake resistance of buildings
While apartment hunting, we learned that buildings were built with varying earthquake standards depending on the year they were built.
The Japanese Shindo earthquake scale
Buildings built before 1981 were built to withstand a Shindo-5 on the Japanese scale measuring intensity. Buildings built in 1981 or later were built to withstand a Shindo-6 or 7.
“Shindo” measures the intensity of the earthquake that is felt.
Retrofitting
The government is trying to get all buildings along main roads retrofitted to help better secure them in the event of a disaster. Not all buildings have been retrofitted yet, however, meaning that if the government requests an apartment building to be retrofitted, residents there may have to pay some money.
While we looked at 5 different apartments in our general target area, only 2 were built after 1981. These would likely be the best options both in terms of safety and property value if we were to sell the apartment sometime in the future.
We decided to apply for one of those two, and luckily we were approved.
Purchasing
One difference with Japan versus the U.S. is that there’s more freedom in Japan regarding who you work with. You can work with multiple real-estate agents and companies while doing your search, and this is what we did.
When it was time to start the next phase of the process, we went to the real estate agency managing the property we wanted to discuss making the offer.
Making the offer
Offers are accepted on a first-come, first-serve basis, and buyers have the option to offer the asking amount or lower. If it’s lower but the next person offers the asking price, the buyer will likely sell to the one willing to pay the price they asked for.
After some consideration, we decided to offer the asking price and luckily the buyer accepted. While we entertained offering lower, the availability of a place like this that’s close to our budget is too uncommon and the demand in the area was just too high. We were reassured that we made the right choice when a second bid came in from someone who had been unsuccessfully looking for a place in the area for the past 7 years.
Locking in the agreement
We met with the agency and the seller in a 3-way meeting, signed and stamped several papers, and paid the seller ¥2.5M in cash to lock in the agreement. The reason why it’s recommended to pay in cash is to avoid fees. It is, however, a bit nerve-wracking to carry that much cash on you!
After this was completed, the long process of actually purchasing, handing over and registering the apartment began.
The entire process from searching to receiving the keys took a little over 3 months. It was lengthy, stressful, and something I was glad to have finally completed.
The next step is doing some renovations to the dated interior. I’ll update about that later, but this is a solid step forward in being able to have a life between two countries.
Don’t forget to watch my video which shows this entire process, including the apartments we looked at:
Watch on YouTube
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What You Get in Tokyo for $1,800/Month
What is a typical 1-bedroom (1LDK) apartment in central Tokyo actually like? My approx. $1,800/month apartment in Setagaya, Tokyo.
Tokyo is one of the world’s major cities and one of its biggest.
There are more than 37 million people in the greater metropolitan area, almost 14 million in the city proper, and Tokyo has the biggest economy of any city in the world. It’s safe to say that space comes at a premium.
Just like my previous $950/month Tokyo studio apartment, you will either find this $1,800/month 1-bedroom apartment expensive or a good deal, depending on where you’re from.
The location
As with anywhere, the location has a lot to do with the price. The metropolitan area of Tokyo is made up of 23 wards, and each operates with some autonomy. Because of this, each has slightly different residential taxes and average rent prices.
In fact, when comparing average rent prices between the cheapest and most expensive wards, the most expensive (Shibuya ward) is more than double the cheapest (Katsushika ward).
The average rent for a 1LDK (1-bedroom apartment) in central Tokyo (within the 23 wards) is said to be about ﾥ145,782 or $1,458 per month in 2022 [J].
Ward: Setagaya
My apartment was in the Setagaya ward which is west-southwest from the center of Tokyo. It has just under 1 million residents and is the second largest ward in Tokyo in terms of area. Its residential taxes and rent prices, while generally cheaper than others wards like Minato or Shibuya, is slightly above average.
The most well known area in Setagaya is probably Shimokitazawa, an area known for its subculture, thrift stores, small bars and live houses, and a spot where many performing artists get their starts.
This apartment is about 3 minutes from there by train.
Station: Kyodo
A Kyodo street in the snow
My wife and I chose an apartment in Kyodo [MAP] - a residential area about 15 minutes from Shinjuku and Shibuya.
There is one train line that goes to Kyodo - the Odakyu line. The Odakyu line goes from Shinjuku all the way out west to the Hachiōji area and down to Kanagawa prefecture.
The station and train lines that go through it are important factors when deciding where to live in Tokyo, and it also affects the price.
An Odakyu line train leaving Kyodo Station
At Kyodo Station, the regular and express trains stop, which makes it more desirable. The rapid express train doesn’t stop, however.
There are also some trains that become Chiyoda line trains. Personally, I think that the Chiyoda line is one of the best lines in Tokyo because it goes to popular areas such as Harajuku, Omotesando/Aoyama, Nogizaka (right next to Roppongi), Hibiya (next to Yurakucho and Ginza), Nijūbashimae (Marunouchi and Tokyo Station area).
It was also easy for me to get to work, taking around 40 minutes door-to-door with 1 easy transfer on the same platform or none at all.
Corty shopping complex
Our apartment was only a 5 minute walk from Kyodo station. Around the station area, there are about 3 supermarkets, dry cleaning, convenience stores, a gym, and other food places and coffee shops.
It’s also worth noting that Gotokuji and Yamashita station are only about 10 minutes away, making the Setagaya line also accessible.
The apartment building
Our apartment building in Kyodo
The apartment building is an 11-story concrete building built in 2010. In Japan, they refer to this type of apartment as a “mansion”, which tends to be more expensive to rent when compared to “apāto” types.
It’s a corner unit which is nice, but there wasn’t anything special about the view. It faces west and looked down at a main street below, and if you look around the corner, you can see the Shinjuku skyline in the distance.
Key features
“Auto-lock” - A secure entry system into the building (there’s actually 2 to get in)
Security camera system in the lobby and elevator
Video intercom to allow people into the building
Front desk/concierge service
Delivery boxes - A self-serve, secure locker system for box deliveries in case you’re not home
Courtyard area outside of the lobby
Car parking garage (extra fee) - A covered parking lot meet to the apartment building
Mail and delivery box area
The building is located next to the train tracks, so it can be a little on the noisy side when you’re outside. The apartments are equipped with double-paned glass so almost all of that noise is filtered out.
To the front of the west side of apartment is a gym, and the other side faces a street.
The apartment complex is owned by Odakyu, the same company that runs the train lines, has department stores and a lot more. They also run the promenade that leads up to the building from Kyodo station.
Lobby
The building has staff and a concierge that helps out with tasks such as mailing boxes, getting dry cleaning done, etc., however they come at an extra fee. The staff are really nice though.
Courtyard
The entire area, including the apartment building, are very well maintained by the Odakyu staff. They’re always cleaning, doing landscaping, and even worked through the night on a snowy night to clear the ice.
The apartment
Living room
This apartment is classified in Japan as a 1LDK, which means 1 bedroom, a living room, dining area, and a kitchen.
Apartment layout
Key features
47.15 sq. m (506 sq. ft.)
Stove with 3 gas burners, grill
TOTO toilet with remote bidet, heated seats, etc.
Bathroom with anti-fog heated mirror cabinet
Flat-floor shower and a tub that automatically fills, reheats and circulates water while maintaining temperature
Dryer function that allows clothes drying in the shower
Washing machine hookup with hot and cold water
2 AC/heater units (1 in living room, 1 in bedroom)
Large balcony with open-air view
2 sliding doors with double-paned glass
Higher than typical ceiling
Bedroom. For reference, the bed is a full-sized bed.
TOTO toilet, separate from the bathroom.
Bathroom with washing machine hook-up
Flat-floor shower and tub unit. Tub has functions like auto-fill, reheat, circulate. The shower also can dry clothes.
Balcony
Fees and costs
The monthly rent totaled to ¥180,000 or about $1,800 USD, depending on the exchange rate. This included the management and service fee of ¥7,000 ($70). When looking at the monthly costs, it’s pretty reasonable considering the size and density of the city, and quality of the apartment itself.
The initial costs, however, were a bit high as often is the case.
Initial costs
While exact costs may vary depending on the rental agency, it is typical that there will be a deposit and “key money” amongst a few other smaller fees. The key money is what was a bit different from any rental experience that I had.
There’s also the typical and non-refundable “thank you” fee to the property owner for letting us rent, it’s paid at the beginning of each contract term. This means that you’ll pay it again if you choose to stay at the location and renew for another 2 years.
Personally, I think it’s a ridiculous fee, especially if you’re a good renter because you’re the one actually helping the property owner out, but that’s the norm in Japan.
They take out a cleaning fee from the deposit when moving out.
My initial moving-in expenses were something like this:
Deposit: ¥180,000 (1-month’s rent)
Key/thank you money: ¥180,000
1st month’s rent: ¥180,000
Key fee: ¥22,000
Insurance: ¥10,400 (1/year)
Total: ¥572,400 (approx.)
It’s also worth mentioning that in Japan, the tenant is responsible for providing their own appliances.
This includes things like refrigerator, washing machine, and light fixtures. Luckily, electronics stores have sets for sale and you can find appliances at reasonable prices.
Utilities
The rent didn’t include any utilities.
Our monthly utility bills on average for 2 people were something like this:
Electricity: ¥5,576 (depending on season)
Gas: ¥4,804
Sewer & Water: ¥6,975 (once every 3 months)
Internet: ¥4,734
Total: ¥22,089/month (approx.)
I wrote more about utility costs in Tokyo here.
This may total to be more than a lot of other cities around the world. However, to get to live in one of the best cities in the world, a huge one at that, was worth it.
Check out more in Tokyo.
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What You Get in Tokyo for $950/Month
What is a typical studio apartment in central Tokyo actually like? My approx. $950/month apartment in Setagaya, Tokyo.
Tokyo tends to have an image of being expensive. What we consider as expensive or cheap is relative, but if you’re from any major city in the US or Canada, you’ll likely think that renting in Tokyo is a pretty good deal, at least regarding the monthly costs.
As you could guess by the title, my rent for my first studio apartment in Tokyo was about $950 a month.
The location
As with anywhere, the location has a lot to do with the price. The metropolitan area of Tokyo is made up of 23 wards, and each operates with some autonomy. Because of this, each has slightly different residential taxes and average rent prices.
For reference, the average rent for a 1K studio in central Tokyo (within the 23 wards) is said to be about $870 in 2019 [J]. It’s not uncommon to pay a rent within the $700 range for a good place, however.
Ward: Setagaya
My apartment was in the Setagaya ward which is west-southwest from the center of Tokyo. It has just under 1 million residents and is the second largest ward in Tokyo in terms of area. Its residential taxes and rent prices, while generally cheaper than others wards like Minato or Shibuya, is slightly above average.
The most well known area in Setagaya is probably Shimokitazawa, an area known for its subculture, thrift stores, small bars and live houses, and a spot where many performing artists get their starts.
My apartment was about 10 minutes from there.
Station: Shimotakaido
I chose an apartment in Shimotakaido [MAP] - a residential area within 15 minutes of Shinjuku and Shibuya.
Main walking street in Shimotakaido
Two train lines go to Shimotakaido - the Keio line and the Setagaya street car line. The Keio line goes from Shinjuku all the way out west to the Hachiōji area. The Setagaya line connects Shimotakaido with Sangenjaya.
This area was very convenient for me because the Keio line connects to the TOEI Shinjuku line. This meant that I only had one easy transfer crossing the platform at Sasazuka Station, and sometimes none at all, to get to work which was around 35 minutes door-to-door.
My apartment was only a 3 minute walk from the station. The majority of the walk was along the main road with a 24-hour supermarket, dry cleaning service, Lawson and 7-11 convenience stores, and a lot more along the way. Extremely convenient.
The apartment building
Apartment building in Shimotakaido
The apartment building was a 12-story concrete building built in 2004. In Japan, they refer to this as a “mansion” (odd, I know). At the time I rented it, it was about 10 years old.
To the west, it had a view of Mount Fuji, and to the east a view of the downtown Shinjuku skyline.
Key features
“Auto-lock” - A secure entry system into the building
Security camera system in the lobby and elevator
Video intercom to allow people into the building
Delivery boxes - A self-serve locker system for box deliveries in case you’re not home
Secure bicycle parking (extra fee)
Mechanical car parking (extra fee) - A parking system that elevates cars to save space
The building was next to an expressway, so the lower floors may have been a little on the noisy side. To the front of it was an office building of about equal height and another apartment building was on the opposite side of the expressway.
A woman would come and clean the apartment almost every morning so the common areas of the building were pretty well kept.
The apartment
Room - For reference, the bed is a double/full size
My apartment was classified in Japan as a 1K, which means 1 room and a kitchen. It’s basically a simple studio. 1Ks are very common in Japan as living with non-family roommates isn’t typical, traditionally speaking.
Apartment layout
Key features
24 sq. m (258 sq. ft.)
Stove with 2 gas burners
Bathroom with shower, tub
Washing machine hookup
1 concrete “designer” wall
Balcony with half view of Shinjuku
Sliding door with double-paned glass and invisible retracting screen
Higher than typical ceiling, concrete
Hallway and kitchen area
Bathroom (Not my actual apartment - layout was reversed)
Shower and tub (Not my actual apartment - layout was reversed)
Intercom, AC remote holder, kitchen and hallway connecting to the room (Not my actual apartment - layout was reversed)
Balcony
Fees and costs
The monthly rent totaled to 95,000 JPY or about $950 USD. This included the management and service fee of 7,000 JPY ($70). When looking at the monthly costs, it’s pretty reasonable considering the size and density of the city, and quality of the apartment itself.
The initial costs, however, were a bit high.
Initial costs
While exact costs may vary depending on the rental agency, it is typical that there will be a deposit and “key money” amongst a few other smaller fees. The key money is what was a bit different from any rental experience that I had.
Poorly explained to me as a non-refundable “thank you” fee to the property owner for letting me rent, it’s paid at the beginning of each contract term. This means that you’ll pay it again if you choose to stay at the location and renew for another 2 years. Personally, I think it’s a ridiculous fee but that’s the norm in Japan.
Another fee I was charged was a cleaning fee that they used when I moved out.
My initial moving-in expenses were something like this:
Deposit: $950 (1-month’s rent)
Key/thank you money: $950
1st month’s rent: $950
Cleaning fee: $385
Key fee: $185
Insurance: ~$120 (1/year)
Debt collector fee: ~$100 (1/term)
Total: $3,640 (approx.)
Utilities
The rent didn’t include any utilities.
My monthly utility bills on average were something like this:
Electricity: $30-65 (depending on season)
Gas: $25
Sewer & Water: $30 (once every 3 months)
Internet: $45
Total: $110-$145/month (approx.)
This may total to more than a lot of other cities around the world. However, to get to live in one of the best cities in the world, a huge one at that, in my own place with my own bathroom and washing machine and everything, to me, was worth it.
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How I Found My First Apartment in Tokyo
The process I went through to move to Tokyo and find an apartment to live in.
I moved to Tokyo in 2014, a huge mega city of more than 13 million in its central area.
This was the first time I would hunt for a place to live in Japan myself. I lived in a 2-bedroom apartment when I worked in Fukuoka prefecture but it wasn’t one I picked out for myself.
Finding an apartment in Tokyo was, of course, a bit different from my experiences finding ones in Los Angeles and San Francisco.
DIFFERENCES & DIFFICULTIES:
Residency/visa issues - Because non-Japanese don’t have typical paperwork like a koseki (family registry) and jūminhyō (official address registration), it’s difficult to run a background check. It’s unclear how you’re able to live in Japan, what your job situation is, how long you’ll be in the country, if they can collect if costs are unpaid, etc.
Communication hurdles - There are very tedious documents and requirements, and many agents in the process aren’t capable of any language besides Japanese.
Non-Japanese restrictions - Many buildings aren’t open to non-Japanese citizens due to reasons such as inability to communicate in emergencies, incompatible behaviors, previous bad experiences or simple stereotyping by the owner or tenants.
Agency-centric - Almost all rentals are managed and rented out by agencies rather than a landlord managing their properties themselves, so there’s automatically 4 parties involved in which you have to deal with: The rental agency, property owner, credit verification company and insurance company.
Luckily my company helped me with the move. I had a couple of weeks or so to find an apartment, a Japanese colleague came with me and my company vouched for me to help with any potential residency hurdles.
1. CONDUCT AN INITIAL SEARCH ONLINE
One of Japan’s largest residential developers, Sekisui House, was a client of ours and they just had started their rental platform, Sha Maison [J]. Like most apartment search sites, they give the option to search by factors like price, area, train line, train station, walking time from the station, size, etc.
Other search sites include SUUMO, LIFULL HOME’S [J], Good Rooms [J], Village House and Oak House, with the last two being the most foreigner-friendly.
Sha Maison website
At the time, I was relatively unfamiliar with areas in Tokyo besides the major hubs and tourist spots, so I didn’t have much of an idea about where to actually live.
The things I cared about in my search were:
West side of Tokyo (I was concerned about being too close to the ocean)
1K (Studio)
Had a balcony
1 transfer or less to/from work
Ideally within a 7 minute walk from the station
Less than 100,000円 (~$1,000 USD)/month
Just as a note, Japanese tend to be particular about things like auto-lock (building security system), bathtub, and having the toilet separate from the bathroom.
After finding a couple of apartments I was interested in, we put in a request.
2. WORK WITH THE RENTAL AGENCY
Sekisui House and Sha Maison are tied to one main agency: MAST [J]. We went to one of their locations to discuss what I found.
MAST website
Unfortunately my first choice, a studio in the Kagurazaka area, had just been taken. They went through a list of available rentals (they had a lot more than what was listed on the site) and I picked out 4 available units that best matched what I wanted.
The 4 choices were 1K studios in Asagaya, Higashi-Nakano, Shimotakaido and Gotanda. Over the course of 2 days, an agent met us and we went to take a look at them. I narrowed my choices down to the apartments in Shimotakaido and Gotanda before picking the prior.
Luckily I moved in September. During peak moving season (February-April because it’s when schools graduate, job relocations happen and work contracts start and end), you have to be lucky and extremely fast to get a decent place as it’s very competitive.
3. COMPLETE ALL THE PAPERWORK
Once you decide you want a place, it’s not guaranteed that you’ll get it. The agency needs to check your credibility. As mentioned, they use another agency to do this.
HOW CREDIT IS CHECKED
In the US, credit is often checked by running your social security number. Japan implemented a similar “My Number” system a few years ago but as of right now in 2019, it’s basically meaningless as there’s no system on the backend that connects people’s information.
Credit is checked by methods such as confirming the company you work for, how long it’s been around, its capital and your position there. Definitely different.
JAPANESE DOCUMENTS AND FORMS
The paperwork is tedious and completely filled out by hand in Japanese. It’s often not prepared and printed out so that all you have to do is check the boxes, sign and date. It’s multiple copies where you have to write basically everything out by hand over and over again, and stamp them using a hanko (Japanese name stamp which is also required).
To be honest, if I didn’t have my Japanese colleague’s help, I probably wouldn’t have been able to do it on my own.
There’s a high chance that this process will take multiple trips and you’ll be running errands gathering all the necessary forms needed. That’s how it was for me.
4. MOVING IN
An agent met me in front of the building on my move-in date and handed me the keys, paperwork and contacts for questions or maintenance needs.
UTILITIES AND APPLIANCES
Unlike a lot of rentals in the US, apartment rentals in Japan come with nothing more than the room with light bulbs in the fixtures. Refrigerator, washing machine and any other appliances or furniture that you may need will have to be purchased on your own.
You will also have to contact utility companies to either connect to you apartment or put the account in your name. Electricity, water & sewer, gas and internet are the typical utilities.
The first few days were hard. My things hadn’t arrived yet so I was living out of a suitcase. I bought a cheap blanket and a towel, and slept on the hard floor with no curtains or anything.
I did better on my next move, but this was my first experiencing finding an apartment to move to Tokyo.
I share my experiences and tips for dealing with money if you're traveling or moving to Japan. My preferred banks in the U.S and Japan, how to use Apple Pay, and the credit cards that I use.