New vs. Resale Property in Tokyo: A Foreign Buyer’s Comparison Guide (2026)
One of the first decisions foreign buyers face in Tokyo is whether to buy a new-build condominium (新築マンション) or a resale property (中古マンション・中古一戸建て). Both have genuine advantages — and the right choice depends heavily on your priorities: yield, capital appreciation, renovation flexibility, or peace of mind. This guide gives you the honest comparison.
Written by a licensed real estate agent (宅建士) based in Tokyo. Figures reflect current market conditions as of 2026.
At a Glance: New vs. Resale
| New Construction (新築) | Resale (中古) | |
|---|---|---|
| Price premium | High (10–30% above resale equivalent) | Lower entry point |
| Negotiation room | Very limited | Often possible |
| Earthquake standard | Latest (2000 code) | Varies — check carefully |
| Structural warranty | 10 years (builder) | None (private sale) |
| Renovation needed | No | Often yes |
| Inspection possible | Limited (pre-completion) | Full inspection available |
| Rental yield | Lower (3–4% central Tokyo) | Higher (4.5–7%+) |
| Depreciation speed | Fast in first 5 years | Slower (already depreciated) |
| Selection | Limited to developer projects | Wide |
New Construction: The Full Picture
What You’re Buying
New construction in Tokyo is typically sold directly by a developer — either after completion (完成後販売) or, more commonly, before completion in a pre-sale scheme (青田売り). In pre-sales, you sign a contract and pay a deposit based on floor plans and a model unit, often 12–24 months before receiving the keys.
Advantages
- Latest earthquake standards. All new construction meets the 2000 revised seismic code, the highest standard in Japan. This matters significantly for safety and long-term resale value.
- 10-year structural warranty. Under the Housing Quality Assurance Act (住宅の品質確保の促進等に関する法律), developers must provide a 10-year warranty on structural elements and waterproofing. This provides real protection in the early years of ownership.
- No renovation required. Move in immediately — or rent out immediately — with no capital expenditure on interiors.
- Modern building systems. New buildings have updated mechanical, plumbing, and electrical systems, and often include energy-efficient specifications.
- Pre-completion price lock. In a rising market, buying pre-completion at today’s price with settlement 12–24 months out can produce paper gains before you even move in — though this works both ways in a falling market.
Disadvantages
- Significant price premium. New-build condominiums in central Tokyo typically sell at a 10–30% premium over comparable resale units. In premium areas like Minato or Shibuya, new studios routinely list above ¥50M — prices that reflect construction cost inflation, land scarcity, and developer margin.
- Sharp initial depreciation. The moment a new property is first sold, it becomes “used” (中古) in the eyes of the market. Resale values often drop 10–20% in the first 3–5 years — you are absorbing the developer’s premium at purchase.
- No room to negotiate. Developers set prices for entire phases. There is essentially no negotiation on individual units, particularly in desirable projects.
- You cannot inspect what you’re buying. In pre-sales, you commit based on floor plans and a showroom model unit. Actual finishes and views may differ from expectations.
- Repair fund starts low. New buildings set initial repair fund contributions deliberately low to attract buyers, with the understanding they will increase — often substantially — at the first major management association vote, typically 5–10 years after completion.
Resale Property: The Full Picture
What You’re Buying
Resale covers everything from last-year’s near-new units to 40-year-old buildings in need of full renovation. The market is enormously diverse — and that diversity is exactly what makes it interesting for both owner-occupiers and investors.
Advantages
- Lower entry price. For the same location and size, resale typically costs 10–30% less than new. In absolute terms, this gap is significant: a ¥50M new studio might have a resale equivalent at ¥35–40M.
- Inspect before you commit. You can walk through the exact unit, assess condition, check views from every window, and commission a full building inspection — all before signing. This is a fundamental advantage new-build buyers do not have.
- Negotiation is possible. Motivated sellers, longer listing periods, or properties requiring renovation all create room to negotiate. A well-positioned buyer can sometimes achieve 3–7% below asking price.
- Higher rental yields. Lower purchase prices relative to achievable rents mean gross yields of 4.5–7% are achievable in central-to-mid wards for resale units — significantly above new-build yields of 3–4%.
- Slower depreciation. A building that is already 15 years old and priced accordingly has far less downside depreciation risk than a new-build absorbing its initial premium drop.
- Renovation potential. For buyers who want to customise interiors — or investors who want to upgrade units to command higher rents — resale provides a blank canvas that new-builds do not.
Disadvantages
- Earthquake standard uncertainty. Buildings constructed before 1981 were built to the old seismic code (旧耐震基準) and may not meet current safety standards. Buildings between 1981 and 2000 meet the 1981 code (新耐震基準) but not the stricter 2000 revision. Always confirm the building’s compliance status — it affects both safety and future resale value.
- No structural warranty. In a private resale transaction, there is no mandatory builder warranty on structural elements. Defect liability (瑕疵担保責任) exists under civil law, but the seller is only liable for hidden defects they knew about and concealed.
- Renovation costs. Many resale units — particularly those vacant for some time — require significant renovation investment. Kitchen and bathroom updates, flooring, and wiring upgrades can add ¥1–5M or more to the effective purchase cost.
- Repair fund risk. Older buildings may have underfunded repair reserves. If major repairs (外壁補修、エレベーター交換 etc.) are upcoming and the reserve is insufficient, special levies on all unit owners may be imposed. Always request the repair fund balance and schedule before buying.
The Earthquake Standard Question
This deserves its own section because it is the most important due diligence check for any resale purchase in Japan.
| Building Period | Seismic Standard | Risk Level |
|---|---|---|
| Before June 1981 | Old code (旧耐震基準) | High — structural risk in major quake |
| June 1981 – May 2000 | New code (新耐震基準) | Medium — better but not current standard |
| June 2000 onwards | Revised code (2000年基準) | Low — current standard |
Banks will not mortgage pre-1981 buildings without a seismic assessment. Many buyers avoid them entirely. Post-2000 buildings are safest and command the strongest resale values over time.
The Building Inspection (ホームインスペクション)
For any resale purchase, a professional building inspection is essential. A licensed home inspector (ホームインスペクター) will assess:
- Structural condition of the unit and common areas
- Water damage, mould, and waterproofing integrity
- Electrical and plumbing systems
- Condition of shared facilities (elevators, rooftop, parking)
- Review of management association documents for upcoming repairs or financial issues
Cost: ¥50,000–¥100,000. Arrange the inspection before signing the sales contract — once the earnest money deposit is paid, backing out costs you the full deposit.
Which Is Right for You?
Choose new construction if: you prioritise peace of mind over yield, want no renovation hassle, are buying as a primary residence and plan to hold long-term, or want the latest safety standards with warranty protection.
Choose resale if: you are optimising for yield as an investor, want more negotiating leverage, need a lower entry price point, or want to customise the property. Just ensure thorough due diligence on the earthquake standard, repair fund health, and building condition.
For most foreign investors, the yield advantage of resale — combined with Tokyo’s stable resale market for well-located post-2000 buildings — makes resale the more compelling choice in the current market, particularly in the ¥15–35M range.
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