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Choosing between a new or old condo in Japan significantly impacts your investment returns and living experience.
New condos in prime Tokyo locations cost 30-40% more per square meter than older units but offer modern amenities and higher rental yields. Older condos provide better value for money but may require substantial maintenance investments and face stricter earthquake compliance standards.
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New condos in Tokyo's central districts cost ¥800,000-¥1,200,000 per sqm while 10-20 year old units sell for ¥500,000-¥800,000 per sqm.
Brand new condos depreciate 15-20% in the first five years but maintain better resale value and rental income potential than older properties.
| Factor | New Condos (0-5 years) | Older Condos (10-20 years) |
|---|---|---|
| Price per sqm (Tokyo central) | ¥800,000 - ¥1,200,000 | ¥500,000 - ¥800,000 |
| Monthly maintenance fees | ¥300-500 per sqm | ¥200-400 per sqm |
| Initial depreciation | 15-20% in first 5 years | 5-10% continued decline |
| Rental yield potential | 3.5-5.5% | 4.0-6.0% |
| Earthquake compliance | Latest standards (2000+ codes) | May need retrofitting |
| Time on market | 1-4 months | 3-8 months |
| Financing options | Better loan terms | Stricter requirements |
How much does a brand-new condo cost per square meter in prime Japanese neighborhoods?
Brand-new condos in Tokyo's central districts command premium prices that reflect their modern amenities and prime locations.
In Shibuya, Shinjuku, and Ginza areas, new luxury condos sell for ¥800,000 to ¥1,200,000 per square meter as of September 2025. Premium towers in Roppongi and Akasaka can reach ¥1,500,000 per sqm for top floors with city views.
Mid-tier new developments in popular residential areas like Ebisu, Daikanyama, and Nippori typically range from ¥600,000 to ¥900,000 per sqm. These prices include modern fixtures, energy-efficient systems, and building amenities like gyms and concierge services.
Outside Tokyo, new condos in Osaka's central districts cost ¥400,000-¥700,000 per sqm, while Yokohama and Kawasaki new builds range from ¥500,000-¥800,000 per sqm.
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How much do 10-to-20-year-old condos cost per square meter in the same areas?
Older condos in the same prime locations offer significant savings compared to new construction.
In Tokyo's central districts, 10-20 year old condos typically sell for ¥500,000 to ¥800,000 per square meter, representing a 30-40% discount to new builds. Well-maintained buildings in Shibuya or Ginza from the mid-2000s often transact around ¥650,000-¥750,000 per sqm.
The discount varies based on building quality, management standards, and specific location within each district. Condos built between 2005-2015 in excellent condition may only discount 25-30% from new prices, while older units requiring renovation can be 40-50% cheaper.
In Osaka, 10-20 year old condos cost ¥300,000-¥500,000 per sqm, while similar units in Yokohama range from ¥350,000-¥600,000 per sqm.
What are the average monthly management and repair fund fees for new versus older condos?
Management fees vary significantly between new and older buildings due to different amenity levels and maintenance needs.
| Building Age | Monthly Management Fee | Special Repair Fund |
|---|---|---|
| New (0-5 years) | ¥300-500 per sqm | ¥50-100 per sqm |
| Mid-age (6-15 years) | ¥250-400 per sqm | ¥100-200 per sqm |
| Older (16-25 years) | ¥200-350 per sqm | ¥150-300 per sqm |
| Very old (25+ years) | ¥150-300 per sqm | ¥200-400 per sqm |
| Luxury new builds | ¥600-800 per sqm | ¥100-150 per sqm |
| Basic older buildings | ¥100-200 per sqm | ¥300-500 per sqm |
How fast do Japanese condos lose value after purchase?
Japanese condos follow predictable depreciation patterns that differ significantly between new and older properties.
Brand-new condos typically depreciate 15-20% in their first five years due to the premium developers charge over construction costs. This initial drop is steeper in oversupplied areas and slower in prime central locations with strong rental demand.
After the initial depreciation period, well-located condos in Tokyo stabilize and may appreciate 1-3% annually if infrastructure improvements or neighborhood development occur. Buildings near new train stations often see 10-15% value increases when lines open.
Older condos (10-20 years) continue depreciating at 2-5% annually unless major renovations or area improvements occur. Buildings approaching 30 years face accelerated depreciation unless they undergo comprehensive refurbishment.
Land values remain more stable than building values, making condos with higher land-to-building ratios better long-term investments.
What are the historical resale price trends for condos in specific Japanese neighborhoods?
Tokyo's central districts have shown remarkable resilience in condo pricing over the past decade.
Shibuya, Shinjuku, and Minato ward condos appreciated 25-40% from 2015-2025, driven by foreign investment, Olympic infrastructure, and low interest rates. Premium areas like Roppongi and Akasaka saw even stronger gains of 40-60% during this period.
Mid-tier residential areas like Setagaya, Meguro, and Shinagawa experienced 15-25% appreciation, while outer Tokyo wards remained relatively flat or declined slightly. Condos near new train line extensions consistently outperformed market averages.
Osaka central districts appreciated 20-35% from 2015-2025, while Yokohama and Kawasaki gained 15-30%. Regional cities like Nagoya, Fukuoka, and Sendai showed modest 5-15% gains.
Buildings with good management and regular maintenance held value better than poorly managed properties in all areas.
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Are there infrastructure projects that could affect condo values in Japan?
Major infrastructure developments significantly impact Japanese condo values, particularly new train lines and urban redevelopment projects.
1. **Tokyo Metro Extensions**: The Hibiya Line extension to Tsukuba and new Haneda Airport rail links will boost values in affected areas by 10-25%2. **Osaka Expo 2025 Infrastructure**: New train connections and area development around Yumeshima Island are already increasing nearby condo values3. **Linear Chuo Shinkansen**: The maglev line connecting Tokyo-Nagoya-Osaka will transform intermediate cities when completed in the 2030s4. **Tokyo Bay Redevelopment**: Massive mixed-use projects in Toyosu, Ariake, and Odaiba continue driving premium condo demand5. **Station Area Redevelopments**: Ongoing projects around major stations like Shibuya, Shinjuku, and Shinagawa create value premiums within 1km radiusCondos within 500 meters of new stations typically see 15-20% value increases upon line announcements and another 10-15% when services begin.
What are the current loan conditions for foreign buyers in Japan?
Japanese banks offer mortgages to foreigners but with stricter conditions than domestic buyers face.
Maximum loan-to-value ratios for foreigners typically cap at 60-80%, compared to 90-100% for Japanese citizens. Interest rates range from 1.5-3.5% annually for variable rates and 2.0-4.0% for fixed rates as of September 2025.
Banks prefer financing new condos from established developers over older properties due to easier valuation and lower perceived risk. Some lenders won't finance buildings over 25 years old or those lacking proper earthquake retrofitting documentation.
Required documentation includes proof of stable income, Japanese residency status, and detailed property information. Most banks require borrowers to have lived in Japan for at least one year and earn minimum annual income of ¥3-5 million.
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How do earthquake resistance standards differ between old and new condos?
Japan's earthquake building codes have evolved significantly, creating clear safety distinctions between construction eras.
Buildings completed after 2000 must meet the strictest seismic standards, including advanced base isolation systems and reinforced concrete specifications. These structures can withstand magnitude 7+ earthquakes with minimal structural damage.
Condos built between 1981-2000 follow intermediate standards that provide good earthquake resistance but may lack the latest safety features. Many of these buildings have undergone voluntary seismic upgrades to current standards.
Pre-1981 buildings follow older codes and may require significant retrofitting to meet current safety standards. Banks and insurers often require seismic evaluation reports for these older buildings before approving financing or coverage.
Newer condos also feature better fire safety systems, emergency communication networks, and backup power supplies that older buildings typically lack.
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What is the lifespan and maintenance outlook for condos built before 2000 versus recent builds?
The construction quality and expected lifespan differ dramatically between older and newer Japanese condos.
New condos built in the last five years typically have 50-60 year useful lives with proper maintenance, featuring modern materials, energy-efficient systems, and advanced waterproofing. Major renovations may not be needed until years 20-25.
Buildings from the 1990s often require significant maintenance around year 15-20, including exterior waterproofing, elevator replacement, and mechanical system upgrades. Total renovation costs can reach ¥1-2 million per unit for comprehensive updates.
Pre-2000 condos frequently need major structural work, plumbing replacement, and electrical system updates. Buildings over 30 years old may face special assessments of ¥500,000-¥1,500,000 per unit for comprehensive renovations.
Newer buildings benefit from extended warranties, energy-efficient systems that reduce utility costs, and modern building management systems that minimize operational expenses.
How much rental income can you expect from new versus 15-year-old condos?
Rental yields vary between new and older condos based on tenant preferences and maintenance costs.
Brand-new condos in Tokyo central areas typically generate 3.5-5.5% gross rental yields, with premium units commanding higher rents due to modern amenities and energy efficiency. A ¥50 million new condo might rent for ¥200,000-¥250,000 monthly.
15-year-old condos in the same areas often achieve 4.0-6.0% yields due to lower purchase prices, though absolute rent levels are 15-25% below comparable new units. The same location might see a ¥35 million older condo renting for ¥180,000-¥220,000 monthly.
Tenant demographics differ significantly - new condos attract premium renters willing to pay for modern features, while older units appeal to budget-conscious tenants and young professionals. Vacancy rates are typically lower for well-maintained older buildings due to affordability.
Operating expenses are generally higher for older buildings due to increased maintenance needs, potentially reducing net yields despite higher gross returns.
What are the property taxes and ownership costs for different aged condos?
Ownership costs vary significantly between new and older condos beyond the purchase price.
| Cost Category | New Condos | 10-20 Year Old Condos |
|---|---|---|
| Property Tax (annual) | 1.4% of assessed value | 1.4% of assessed value |
| City Planning Tax | 0.3% of assessed value | 0.3% of assessed value |
| Building Insurance | ¥15,000-25,000/year | ¥20,000-35,000/year |
| Earthquake Insurance | ¥10,000-20,000/year | ¥15,000-30,000/year |
| Management Fees | ¥15,000-40,000/month | ¥10,000-25,000/month |
| Repair Reserve Fund | ¥3,000-8,000/month | ¥8,000-20,000/month |
| Special Assessments | Rare in first 10 years | ¥100,000-500,000 periodically |
How long do condos stay on the market before selling?
Market liquidity differs substantially between new and older condo inventory in Japan.
New condos in prime Tokyo locations typically sell within 1-4 months of listing, with the best units in popular developments selling during pre-sale phases. Premium new builds in Shibuya, Roppongi, and Ginza often have waiting lists.
Well-maintained 10-15 year old condos in central areas usually require 3-6 months to sell at market prices. Properties priced aggressively may sell faster, while overpriced units can languish for 8-12 months.
Older condos (20+ years) typically stay on market 6-12 months, especially if they need renovation or lack modern amenities. Location remains the primary factor - older units near stations sell faster than newer units in inconvenient locations.
Seasonal patterns show faster sales in spring (March-May) and fall (September-November) when job transfers and school schedules drive housing demand.
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Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
The choice between new and old condos in Japan depends on your priorities and budget.
New condos offer modern amenities, better earthquake resistance, and higher rental potential but come with premium pricing and initial depreciation. Older condos provide better value for money and higher potential yields but require careful evaluation of maintenance needs and building management quality.