Japan is one of the top holiday destinations for Singaporeans. I’m sure many of us have also dreamt of one day owning a home in Japan, whether it’s a holiday home in a picturesque location, a practical investment property near the city centre, or a ski lodge blanketed by some of the world’s finest powder snow. But how does one go about turning that dream into reality? Let Kinbachi answer all your burning questions…
1. Can Singaporeans buy property in Japan?
Yes! Japan currently has no restrictions on foreign nationals (including Singapore citizens) from owning real estate — land, homes, condos, and buildings. You will be able to buy property on basically the same terms as Japanese nationals, with no additional taxes.
For us, coming from Singapore, it seemed daunting too. The cultural and language barriers, unfamiliarity with the location, legal differences, tax concerns… It’s enough to send one crashing back down to earth very quickly.
2. Where in Japan should I buy my property?
At Kinbachi, we are based in and recommend the Kansai area (Osaka, Kyoto, Kobe…) as we believe it presents the best balance of good access via Kansai International Airport, reasonable prices and a nice mix of city life, culture and nature.
3. What documents do I need for Japan property purchase?
You will need your passport for identification, as well as proof of address. The most well recognised proof of address is an affidavit certified by a notary public in Singapore. If you have a personal seal (hanko/inkan) that would also be required.
4. What are the costs involved in buying Japan property?
In general, property purchase costs are not as high in Japan as they are in Singapore.
Real estate agent commission: Unlike in Singapore, both sellers and buyers alike have to pay commission to real estate agents when conducting a transaction. This is regardless of whether or not you have your own agent representing you as a buyer. The fee is typically ~3% of the property price + fixed fee (~60,000) + 10% consumption tax. In some cases, a flat fee + 10% consumption tax is also common.
Registration tax: ~2% of property price
Real estate acquisition tax: This is approximately 3-4% of the property price for residential property.
Judicial scrivener fees: Akin to legal fees in Singapore. These vary from firm to firm, but usually range between ¥100,000–¥200,000.
As for annual taxes, there is the fixed asset tax (~1.4%), and city planning tax (~0.3%).
Do note that actual tax calculations are based on the governments assessed value of the property, which in most cases could be slightly lower than the market (or transacted) price.
Tax rules are subject to change so these figures are for reference only. Please get in touch with us for more details!
5. How do I start shortlisting and viewing properties?
In Japan, the language barrier is unfortunately quite high when it comes to property purchase. Many listing portals are aimed at the domestic market and in Japanese only. The majority of real estate agents also only speak Japanese. This is where Kinbachi comes in. We provide full support from shortlisting, to arranging viewings and helping with the offer and purchase process. But we don’t stop there! If needed, we can also help you to project manage renovations and maintain your holiday home while you are away.