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Last updated: 2026-06-30  ·  TokyoEstate Guides

New Build or Secondhand? Choosing a Condo in Tokyo as a Foreign Buyer

There is a moment in many Tokyo property searches when the choice crystallises into something simpler than it first appeared: do you want the model room experience, with its fresh concrete smell and untouched fixtures, or the apartment with the history — possibly in a better location, almost certainly at a lower entry price, and with its quirks already visible rather than hidden under warranty paint? Neither is obviously correct. But the reasons to choose one over the other are more specific to your situation than most articles on the subject suggest.

The vocabulary first: shinchiku and chuko

In Japanese real estate listings, shinchiku (新築) means new construction — a property that has not been previously owned or lived in, typically sold by the developer or a developer-affiliated sales company. Chuko (中古) means secondhand: a property that has been previously registered in someone's name, even if it was never actually occupied. This distinction matters more than it might seem, because the legal definitions affect how each is taxed, how commissions are structured, and what disclosure obligations apply to the seller.

In practice, Tokyo's property market has abundant supply of both. New condominium towers continue to be completed in redevelopment zones around major stations. At the same time, the secondhand stock has grown substantially over recent decades, and there are now well-developed mechanisms — though not yet seamlessly foreigner-friendly ones — for evaluating older properties before purchase.

The 1981 line and why structural standards matter more in Japan

Japan sits on one of the most seismically active pieces of land on earth, and its building codes have evolved significantly as a result. The most important date in this history for a condo buyer is June 1981, when amendments to the Building Standards Act introduced what is called the shin taishin kijun — the new seismic resistance standard. Buildings designed under this standard are required to withstand earthquakes of a different magnitude than those designed under the pre-1981 rules.

A further set of structural standards was introduced in 2000, primarily affecting wooden construction (戸建て), though condominium buyers are generally more focused on the 1981 line. The 1995 Hanshin earthquake, which caused widespread collapse of pre-1981 buildings, reinforced in a very visible way why the date of design approval matters when you are looking at concrete and steel.

For a foreign buyer, this is usually most relevant when looking at chuko apartments. A secondhand property built before June 1981 — or more precisely, one whose building permit was approved before that date — is described as meeting the old standard (旧耐震基準). Most Japanese lenders apply stricter conditions to pre-1981 properties, and some will not lend against them at all. If you are planning to finance with a Japanese mortgage, this is a practical constraint worth verifying with your lender before you fall in love with a particular building.

What you actually pay for with a new build

A new condominium in Tokyo typically sells at a premium above the land value and construction cost — a premium that includes the developer's margin, the model room and sales operation, the marketing, and in many cases, the brand attached to the development. This is not a criticism: the warranty coverage, the new mechanical systems, and the absence of repair surprises are genuine value. But it is useful to understand what portion of what you are paying is durable and what portion is the new-car effect.

New builds come with a statutory 10-year structural defect warranty (瑕疵担保責任), which in practice means the developer is obligated to remedy structural and waterproofing defects discovered within ten years. This is a legal minimum; some developers offer extended coverage on specific systems. This warranty does not transfer in a way that would protect a subsequent buyer who purchases the property after it has been occupied — once a property has been registered in someone's name and resold, it becomes chuko, and the remaining term of the original warranty may or may not be enforceable by the new owner depending on how the contract is written.

New builds are also typically sold without the ability to negotiate significantly on price. The developer sets the price schedule; discounts on remaining units in slower-moving projects exist but are not the norm in Tokyo's more central locations. Agents handling new builds are generally working for the developer or on the developer's commission structure, which is a different arrangement from the bilateral agent relationship in a secondhand purchase.

Secondhand's real advantages: location, character, and what you can actually see

The case for secondhand is not primarily about price — though entry prices in chuko condos in desirable locations can be meaningfully lower than comparable new builds. The more underappreciated advantage is access.

Many of Tokyo's most liveable pockets — the parts with mature zelkova trees lining the streets, the neighbourhood shotengai shopping arcade, the established coffee shops that have been there long enough to have a regular crowd — were built out decades ago. New development tends to concentrate near newly elevated station areas, logistics corridors, and the edges of existing commercial zones. If you want to live in a particular established neighbourhood rather than in a district that is becoming something, the chuko market is usually where those properties are.

There is also something to be said for buying a property whose existing condition is apparent. A new build shows you what the developer chose; the floor plan and fixtures are fixed. A secondhand apartment shows you what the previous owner did with the space, sometimes poorly, sometimes in ways that turn out to suit you more than a developer's standard layout would. The 重要事項説明書 (Important Matters Explanation) that an agent must deliver before a secondhand purchase is legally required to disclose known defects, renovation history, and certain building conditions. Reading it carefully — with translation help if needed — tells you more about a specific property than a developer's glossy brochure.

The inspection gap: how chuko properties are assessed in Japan

Japan introduced mandatory home inspection (住宅インスペクション) disclosure requirements for secondhand real estate transactions in 2018, when the Real Estate Transaction Act was amended. Since then, agents are legally required to explain whether an inspection has been carried out on the property, and if so, to share the results as part of the 重要事項説明 process. This is progress, but it is not the same as mandating that an inspection has actually been done.

In practice, many secondhand condominiums in Tokyo are still transacted without an independent inspection. The disclosure obligation covers whether an inspection exists, not whether one is required. As a buyer, you have the right to commission your own inspection, and for a significant purchase, doing so is generally advisable. Inspectors certified under Japan's Home Inspector (既存住宅状況調査技術者) qualification system are trained to assess the structural and equipment condition of existing residential properties. Finding an inspector who can also communicate in English — or through a bilingual intermediary — adds a layer of complexity, but not an insurmountable one.

Depreciation, resale, and the question foreigners rarely ask soon enough

Japanese condominiums (マンション) have a statutory useful life for tax purposes. Under Japan's tax code, the standard depreciation period for a concrete structure — which is what most Tokyo condos are — is 47 years. This figure affects how the tax authorities calculate the residual value of a building for various purposes, including income tax on rental income if you rent the property, and the calculation of acquisition cost for capital gains when you sell.

For a foreign buyer who is also considering the property as a future investment or who may eventually sell to return overseas, the depreciation schedule matters. A building that is already 30 years old has 17 years of statutory life remaining. A brand-new build has 47. This does not mean the older building is a bad purchase — the land component does not depreciate, and in central Tokyo the land value often accounts for a substantial portion of the total — but the tax treatment of the building component when you come to sell is something to discuss with a Japanese tax accountant before you sign, not after.

For foreign nationals specifically, there are additional considerations around capital gains tax on property sold while living outside Japan (or after leaving Japan), as well as potential withholding obligations in certain sale scenarios. These rules are detailed, they change, and they depend significantly on your individual residency history and tax status. General articles — including this one — cannot substitute for advice from a professional who knows your situation.

What to ask before you decide

The new build versus secondhand question tends to resolve itself once you define what you actually want — and once you look honestly at what your financing situation allows.

What tends to go wrong in this decision is not choosing the wrong property type per se, but narrowing the question before the supporting questions have been answered. A well-located chuko apartment that passes an inspection and suits your financing terms is a sounder purchase than a new build in an area you wouldn't otherwise have chosen. The reverse is also true.

If you haven't already read our guide on the full purchase process, that's the logical next step after forming a general preference on property type — it covers how the offer, contract, and registration work in Japan, and where the decision points are for foreign buyers:

• How to Buy Property in Japan — step-by-step from offer to title registration
• Japan Mortgage for Foreigners — eligibility, documents, and what lenders actually look at
• Can Foreigners Buy Property in Japan? — ownership rights, visa status, and land restriction points
• Reading a Japanese Floor Plan — decoding 1LDK notation and apartment layout logic before your first viewing

References

• Ministry of Land, Infrastructure, Transport and Tourism (MLIT), Housing Bureau — seismic resistance standards and home inspection guidance. mlit.go.jp/jutakukentiku. Accessed 2026-06-30.
• National Tax Agency (NTA), Real Property Transactions and Tax. nta.go.jp. As of 2026-06-30.