FMI Japan –
Real Estate Developer &
Curator of
Japanese Properties, Houses for Sale
A Leading & Trusted
Japan Property Developer
FM Investment Japan Company Limited (FMI JAPAN) is a leading Japan property investment company providing one-stop Japan real estate solutions, backed by a full professional team with extensive international experience and expertise.
We are a Japan real estate developer founded in 2015 under the leadership of our CEO, Mr. Amous Lee, a veteran Singaporean investor in overseas real estate. FMI JAPAN is a subsidiary of FM Investment Group Limited headquartered in Hong Kong.
FMI JAPAN is committed to offer clients the best Japan property investment opportunities and comprehensive real estate services. Our business encompasses Japan property development, design and construction, rental operation, entire building en-bloc sales, home furnishing, B&Bs and hotel booking portal, as well as cleaning services.
As a licensed Japan property developer, our projects are strategically situated in prime locations in Japan. We initiated our inaugural residential project, “La Grace Oshiage III” in 2015. Since then, we have expeditiously undertaken the development of more than 40 projects over the years as a Japan real estate developer.
To meet the needs of our global clientele, we have expanded beyond Japan houses for sale to key cities across Asia, including Singapore and Taiwan.
FMI Singapore is a licensed agent specializing in Japan property for sale, focusing on FMI Japan property developments and en-bloc acquisitions, connecting investors to Japan’s thriving property market.
Project Showcase:
FMI’s Signature Collection of
Japan Property for Sale
“As a dedicated Japan property developer, FMI JAPAN treats your Japan real estate investment with the utmost care and respect. Among all projects we have developed and managed, the most signature type is our collection —The Peak Series. To me, “The Peak” simply implies the best. The Peak Series developments encompass our utmost effort to provide buyers with the best view of best value.
The Peak Series apartments are all located in prime areas and the most convenient part of the district. Most importantly, they are in close proximity to rail connection. Besides, the developments are all newly built to set a new height in the district and characterised with balconies for all apartments, the view of the urban sprawl is definitely a sight to behold.
In addition, the peak series apartments are built with home stay or short-let B&B license. As such, the value is higher than a normal residential building which is constrained in many aspects.” – Amous Lee, CEO of FMI JAPAN
The Peak Namba
The Peak Shinsaibashi
The Peak Kuromon
The Peak Namba
The Peak Shinsaibashi
The Peak Kuromon
Why is it the Ideal Time
for Japan Real Estate Investment?
Why Should You Partner with
A Premier Japan Real Estate Developer?
Direct purchase of Japan houses for sale from a Japanese buyer or through a Japanese agent may not be the best choice.
Language is a significant concern for foreign investors, as many Japanese agents may not speak your language or have experience dealing with foreign buyers, not to mention assisting with mortgage applications or providing after-sales services. This could lead to unexpected problems and misunderstandings when buying Japan property for sale.
Besides, sales and purchase agreements for Japan houses for sale are all written in Japanese. Even if you are fluent in Japanese, can you be certain that you fully understand all the legal documents?
Therefore, it is highly recommended to entrust a well-experienced foreign real estate agency with a Japan real estate license to assist with your property purchase in Japan.
Why Should Investors Choose FMI
Over Japan Real Estate Agents?
At FMI JAPAN, a trusted Japan property developer and agent, we bring together experts in different fields to assist clients in every stage, from property constructions to maximizing returns, to make your Japan property investment journey a smooth one. Here are 5 advantages we offer investors as a Japan real estate developer and curator:
Types of Japan Property for Sale
Japan real estate is mainly categorized into commercial and residential properties. Commercial Japan property for sale includes offices and shops, while residential properties span high-rise buildings / condominiums and single-family homes, like Japan houses for sale. High-rise units are particularly popular for Japan real estate investment due to more stable returns.
High-rise buildings can be further divided into apartment or mansion categories. Japanese apartments are generally shorter, and built with wood and steel. Whereas mansions are newer, more luxurious and made of reinforced concrete. Both types are available in new and second-hand markets, with older and lower-quality units carrying higher Japan property investment risks.
In major Japanese cities, high-rise units dominate the residential market in central areas. While in suburban areas, the two or three-story single-family homes called “ichijoken” are most commonly found. However, Japan houses for sale are a less attractive option for Japan property investment, because most of them are wooden-structured and typically built for several decades, so the return on Japan real estate investment may not be enough to cover repair costs.
Latest Japan Property Investment Trends
From Individual Units to En-bloc Japan Houses
Japan property investment has shifted from open-plan or small units to en-blocs in recent years. Why? In earlier days, Japan property developers and agents tended to sell individual units to foreign investors to boost sales. Over time, overseas investors grew confidence in Japan real estate investment, by devoting higher budgets and shifting to larger-scale assets like entire properties, despite higher costs and less market supply.
Especially after the pandemic, the Japanese economy has been greatly impacted resulting in a slowdown in Japan property price growth, which created a great chance for savvy investors to acquire huge projects with higher potentials for Japan property investment.
Turning Japan Houses into B&B Businesses
Additionally, some investors of Japan houses aim for long-term stays or residency through a business visa programme by operating B&Bs.
Japan is always one of the worldwide favourite tourist destinations. The increasing number of visitors greatly boosts the local economy while straining the hotel industry, and this led to room shortages. Back in 2014-2015, Japan property owners started renting out homes via B&B booking platforms, and soon it became popular and a trend in Japan real estate investment and operations.
However, strong resistance from local hospitality sectors arose due to fear of losing guests and safety concerns from residents. Therefore, in 2018, the Japanese government implemented the “Residential Lodging Business Law,” also known as the “Minpaku New Law,” to regulate B&B units and impose strict guidelines for room standards and facilities. Qualified B&B units are allowed to open for guests up to 180 days a year, but this rule varies by cities.
Long-Term Stay Via Japan Real Estate Investment: Business Management Visa Scheme
Japan has long been a favoured destination for international visitors, and for many, a Japan property investment is a natural way to turn a dream travel destination into a second home. Some investors exploring Japan real estate for sale also look into long-term stay options through Japan’s Business Management visa category, which is intended for individuals who establish and operate a business in Japan. Current requirements include a minimum capital of ¥30 million (~SG$242,600) and other conditions set by the Japanese immigration authorities.
Visa eligibility is assessed solely by the Japanese immigration authorities. Purchasing Japan property alone does not confer residency or visa rights, and buyers of Japan property for sale should not assume otherwise. Whether you already own Japan property or are still comparing options, please consult a qualified immigration professional for advice on your individual circumstances.
Excellent Return on Japan Houses for Sale
Investing in Japanese en-bloc and B&B properties offers excellent returns. Compared to individual Japan real estate units, en-blocs provide permanent ownership, potential for reconstruction value, and simplified processes for rental income and maintenance. With proper and efficient supervision, rental income, property value, and resale value can be increased on your Japan property. Similarly, B&B units benefit from the huge accommodative demand driven by international visitors in Japan, making Japan houses highly lucrative.
Under Japan’s “three lows and one high” economic environment – low interest rates, property prices, and yen exchange rates, plus high rental returns – foreign Japan real estate buyers can earn up to 5% to 8% rental yields, compared to Singapore’s 3% with the same price invested. Meanwhile, mortgage rates for Japan houses for sale remain between 2.5% to 3%, allowing higher profitability. In recent years, our clients have gained satisfactory returns on en-bloc investments through our extensive experience and assistance to solve the hassles.
Buyers Notes Before Buying
Japan Houses or Properties
Once you have made up your mind and decided on your dream home in Japan after thoughtful consideration, there is a crucial step away from officially becoming a Japan property owner—signing the contract.
Buyers of Japan property for sale can either visit the country personally to handle the transaction or authorize a professional as their representative. Regardless of which way is taken, it is important to prepare all necessary documents for a seamless process when making Japan real estate investments.
Overview of Japan Property Buying Process
*In Japan, Judicial Scriveners handle the property rights transfer for Japan property for sale, while Real Estate Notaries (Takken) specialize in Japan real estate contracts. They are both legal professionals of Japan real estate to provide detailed explanations on contracts and important statements. All contracts must have their name and seal to be effective.
Necessary Documents for
Purchasing Japan Real Estate
Individual Buyers of Japan Property
For individual buyers of Japan property for sale, you will need:
- Proof of Identity (Passport)
- Proof of Address
- Affidavit
- Personal Seal
Like any other property transaction, overseas buyers for Japan houses must provide proof of identity, such as a personal passport, and proof of address to establish a purchase contract. Since some overseas buyers for Japan real estate are non-residents, an affidavit is necessary to verify the buyer’s identity, address and signature, certified by their embassy or consulate in Japan. Additionally, buyers need a personal seal to sign the purchase contract for acquiring Japan real estate for sale.
Corporate Buyers of Japan Property:
For corporate buyers of Japan real estate, you will need:
- Proof of Identity (Passport)
- Proof of Address
- Affidavit
- Business Registration Certificate
- Company Seal
On top of the documents required for individual buyers, a business registration certificate is also required for foreign corporate buyers wishing to purchase Japan property, along with a company seal instead of a personal seal. Please note that all contracts and purchasing documents for Japan real estate investment are written in Japanese, typically no translations will be provided.
Breakdown of Taxation & Fees
for Japan Property Investment
Japan has distinct policies for locals and foreign buyers regarding Japan property for sale and purchase. Foreign investors may need to pay Non-Resident Income Tax and other taxes not applicable to locals during property transactions. The actual amount of taxation when buying Japan real estate may vary depending on the location and property prices. As a Japan property developer, we always advise consulting with relevant professionals for more detailed information.
One-Time Taxes for Buying Japan Houses:
As a Japan real estate developer, we advise all investors to take note of the below different types of
one-time taxes before making their purchase:
1. Japan Real Estate Acquisition Tax:
Foreign Japan real estate investors must pay a one-time local tax when purchasing property ownership. The tax amount is calculated as: Fixed Asset Tax Assessment Value x Tax Rate.
Since this tax is collected by local governments, the fixed asset tax assessment is determined by the Japan property’s location without a national standard. Calculations are divided into land and building, the tax rate for general land and residential buildings is 3%. Payment notices will be issued around 6 months after the transaction.
2. Registration Tax:
It is a tax that investors must pay when they register ownership of a newly purchased Japan property. The tax is calculated based on the fixed asset tax assessment and applies to both the land and building portions of the property. In typical Japan property investments, the tax rate for building ownership is 0.4%, while the tax rate for land ownership is 1.5%. Since this tax is a national one, it must be paid within 30 days after the transaction registration is completed. Failure to pay on time will result in fines. If the Japan property for sale is used for self-living, there may be tax exemptions.
3. Stamp Duty
In Japan real estate investments, Stamp Duty is a tax on certain documents such as contracts and share certificates. In Japan, it is required for any Japan property transactions worth ¥100,000 or more. Rates range from ¥200 to ¥480,000 until early 2027.
Here are the prevailing Stamp Duty Rates (in Japanese Yen):
4. Consumption Tax (“Sales Tax” or “Value Added Tax”) (VAT):
This tax applies to any Japan houses transactions or ownership transfers. Property transactions are subject to taxes for both the land and building portions. However, land transfers are exempted from consumption tax, while transactions on the purchase of buildings and constructions remain in Japan and are taxed at a rate of 10%. Normally, sales price is inclusive of the consumption tax.
Fixed Taxes for Acquiring Japan Real Estate:
Foreign buyers who own a Japan property must pay specific taxes and fees based on the property’s assessed value each year. These include:
Property Tax & City Planning Tax:
These taxes are collected by local governments and used to support local urban planning and construction. They are paid yearly by the owners of land, Japan houses, and depreciating assets including property. The Japanese government calculates the tax based on the assessed value of properties on January 1st each year.
The tax rate for “Fixed Asset Tax” is 1.4%, while the tax rate for “City Planning Tax” is 0.3%. These taxes can also be further divided into land and building portions. If the land is used for residential purposes and is less than 200 sq.m., tax exemptions may be available.
Income Tax:
The Income tax rate in Japan ranges from 5% to 45%, depending on the actual taxable amount. The actual taxable amount is the rental income from Japan property investment, deducting necessary expenses such as monthly administration fees, building maintenance fees, and tax exemptions. Non-residents receiving income from any domestic sources in Japan, including rental property, are taxed at a flat rate of 20.42% of their income.
Japan real estate owners are responsible for declaring their income tax themselves. If any difficulties are encountered or additional assistance is needed, hiring a tax accountant could be an option.
Withholding Tax:
Withholding Tax is an advance payment. The government requires tenants to reserve a certain amount from their rent as pre-paid taxes on behalf of the Japan houses’ owners, reducing the risk of Japan property owners who live overseas or non-residents not paying taxes. The tax rate is 20.42%. If any amount extra (after deducting income tax) is withheld, it will be refundable in the following year.
However, non-resident Japan real estate owners who rent their properties to individuals for residential purposes do not need to have any tax withheld. Other necessary fees for property ownership include monthly administration fees and maintenance fees.
Taxes & Fees Linked to Japan Property for Sale:
When selling Japan houses, non-resident sellers should pay attention to these 2 taxes:
Capital Gains Tax:
Capital Gains Tax is imposed on any income earned from capital gains on Japan property for sale. The taxable income is not simply calculated by subtracting the selling price from the purchase price. All transaction costs incurred during the buying and selling process can be deducted. The tax rate varies based on the holding period, which is divided into 5-year increments.
• If holding period of Japan houses is less than 5 years: 30.63% of NETT gain
• If holding period of Japan houses is more than 5 years: 15.315% of NETT gain
It is also important to note that Japan counts the holding period differently from some other countries. Instead of starting from the date of your purchase, Japan calculates the holding period based on how long you have held the Japan house from the January 1st of the year you are selling. This means that if you bought a Japan property anytime between January 1st, 2019 and December 31st, 2019, you will only enjoy lower capital gains taxes by selling it after January 1st, 2025 regardless of the actual date of your purchase.
Withholding Tax:
Withholding Tax is also payable on Japan houses for sale. It is calculated at 10.21% of the sales proceeds, regardless of any capital gains or losses resulting from the sale. It is exempt only when the property is sold to individuals and used for residential purposes with the selling price falling below ¥100 million.
Mortgage & Financing:
Securing a Loan for Your Japan Property Purchase
Foreign buyers may seek mortgages to finance their Japan property investment. However, while foreign buyers can obtain mortgages in Japan, the procedure is more stringent than local residents.
Most Japanese banks are cautious with non-resident or foreign applicants due to language barriers and the difficulty in verifying overseas documents like identity, income proof, asset verifications. It is understandable that a stricter screening standard applies when compared to domestic borrowers who are looking to purchase Japan real estate. Fortunately, situations have improved in recent years, since some banks already servicing foreign clients are more open to extending credit for Japan real estate acquisition. Also, some overseas buyers have started to explore other financial institutions that offer more flexible conditions but usually charge higher interest rates than major banks.
Building & Safety Regulations:
Quality of Japan Houses for Sale Today
3 Seismic Technologies Used by Japan Real Estate Developers:
Japan is often affected by earthquakes, so advanced seismic building technologies have been developed and adapted to address the issue by Japan real estate developers. Nowadays, the 3 most common seismic-resistant construction methods for Japan property are seismic isolation, seismic damping, and seismic resistance.
Seismic isolation can absorb and reduce 70 to 80 percent of seismic energy by placing isolation devices between the building’s foundation and structure. It is ideal for Japan property developers who are designing and building new high-rise buildings with multiple floors.
The second most common technology used by Japan real estate developer is seismic damping, which places damping devices on a building’s exterior to disperse earthquake forces, protecting the building from violently swaying and reducing structural deformation and damage. This method can adapt to existing buildings, but requires more space and regular maintenance.
Lastly, seismic resistance is the simplest and most cost-effective method among the three for Japan real estate developers, as it uses strengthened structural components such as beams, pillars, and walls during construction to increase the resilience of the building and its ability to absorb seismic energy.
Other Safety Regulations for Japan Houses:
Regulated by the new edition of “Long-Term Excellent Housing Certification System”, assessing buildings’ construction, design, maintenance, administration, energy efficiency and accessibility. Certified buildings are qualified for subsidies and preferential loan deductions.
For Japan houses like B&B and vacation rentals, stricter rules apply under the “Vacation Rental Law”, including fire safety measures, noise control and regular cleaning. If the owner of the Japan property is a non-resident, the property must be managed by a qualified company, otherwise they could face charges.
Newly built B&B properties require advanced planning such as spacious corridors, prominent emergency exits and passages, and CCTV equipped elevators. The newer the Japan property, the stricter the supervision. High-floor units may sway and building structures may be damaged during earthquakes, but chances of collapse are very low.
FMI JAPAN, a trusted Japan property developer, prioritizes our clients’ safety and commits to the highest construction standards for our developments. Especially in our signature “The Peak Series,” Structural Steel Reinforcement (SSR) is used, which can withstand grade 7 or above earthquake forces, ensuring maximum protection.
Looking at Japan Houses for Sale?
Check Out Our Testimonials!
Learn More About Japan Real Estate Investment – FAQs:
As a licensed Japan property developer, FMI JAPAN is here to share our knowledge and experience to facilitate a smooth Japan real estate investment journey. Let’s start by clarifying common doubts and misconceptions about Japan property investments.
1. Japan is somewhat culturally conservative. Why do they open up Japan houses for sale to foreigners if they are so lucrative and worth investing in?
Before 2014, there were no Japan houses for sale that were really sold to overseas buyers as the Japan property market was self-contained. Changes only came after that year, when Japan relaxed mortgage loans so that foreign persons or companies could enter the local market. Some of the Japan property developers already recognized the value of promoting their high-quality real estate overseas, and took advantage of extra sales channels and opportunities with the overseas market.
2. How low is the threshold to own a Japan property?
Japan property prices vary depending on location and quality. What truly matters when buying any Japan real estate, is to look at property prices from an overall standpoint. According to the Real Estate Economic Institute (REEI)’s report, the average price of new condos in 23 wards of Japan’s capital last year was ¥116.32 million (~SG$1million). Meanwhile, in Osaka Prefecture, the average price of new condos over the same period was ¥53.15 million (~SG$461,000). That is much lower compared to similar properties in Singapore, and has become a prime option for Japan property investment.
3. Is it difficult for foreigners to resell Japan houses?
Location is always the key in any Japan property investment, and depends on the supply of properties in the area. It would be challenging to resell Japan real estate in remote locations with plentiful supplies. Likewise, if a Japan property for sale is in good quality and in a prime location, or built by a reputable Japan real estate developer, it would make resale much easier. Besides, the age of the property affects the resale potential too. The most popular Japan houses for sale or lease are in metropolitans and special districts such as the capital.
4. When buying Japan houses, is it better to choose a pre-sale unit or a newly completed one?
Foreign investors have limited chances to buy newly completed Japan houses for sale because local Japanese buyers can start buying about 3 months before completion, making it difficult for overseas buyers to compete with them. Therefore, new Japan houses available to overseas buyers are usually pre-sale properties.
5. Are foreign investors lacking in protection to buy pre-sale Japan houses?
Property construction failures are rare, because Japan property developers are strictly regulated and required to obtain multiple building permits before construction and sale. This offers strong protection to Japan property buyers. Still, the level of protection for pre-sale units depends largely on the credibility of the Japan real estate developer.
6. Any tips for choosing a reliable Japan real estate developer or agent?
Japan real estate buyers should confirm the Japan property developer is licensed and the agency is registered with theJapanese Real Estate Association, which allows you to seek compensation in case of any disputes. Also, be cautious if you are being asked to make full payment by a Japan property developer before completion, such as by offering special incentives, this could be a signal of potential risk for the project being abandoned.
7. How much should I pay as a down payment when purchasing a Japan property?
The down payment for buying Japan houses varies by project, specific requirements, and the construction status, whether the building is completed, under construction, or nearing completion. Typically, the down payment should not exceed 40% of the purchase price. If the buyer is being requested to pay more, they should carefully evaluate the Japan property developer’s financial stability.
8. Vacancy rate in Japan remains high, is it easy to rent out Japan houses after purchase?
The national housing vacancy rate in Japan has reached 13.8% in recent years, according to a survey by the Ministry of Internal Affairs and Communications. However, this figure includes vacancies of owner-occupied and rental properties. The vacancy rate for rentals is only 6.9%, slightly higher than Singapore’s private housing vacancy rate of 5.5% in Q4 of the year 2022.
We are reminded that Japan is a country with a larger territory and population. The population for major cities increases year by year, where the population of the capital has exceeded 38 million, accounting for 30% of the country’s total. Therefore, vacancy rates for Japan real estate in urban cities are always low.
For owners of Japan houses in urban centres, it is more important to find a reliable Japan property developer or agent to assist with rentals. For example, we as a Japan real estate developer successfully rents out over 90% entrusted units immediately after listing.
9. How many types of rental agreements are there for Japan real estate?
There are 2 main types of rental agreements for Japan property: the general rental agreement with a 2-year contract period, and the fixed-term lease agreement lasting at least 2 years.
10. In Japan, tenants have protections against rent hikes. Would this affect rental returns on my Japan property investment?
Under general Japan property rental agreements, the contract will automatically renew until the landlord formally terminates the tenant with notice. Landlords cannot evict the tenant, but the tenant can stop the lease with only 1-month prior notice. These terms offer owners a more stable rent and avoid the need to seek new tenants or cover maintenance costs between terms.
For fixed-term lease contracts on Japan real estate, the tenant is required to move out unless the landlord gets the contract renewed. However, this often comes with lower rents for contract renewal. Alternatively, Japan property investors may consider operating serviced apartments charged on a monthly basis or homestays charged on daily rates, both yielding higher returns on their Japan real estate investment than regular rentals.
11. What should I be aware of when buying a Japan property for B&B use?
When purchasing a Japan property for sale as B&B rentals, ensuring that they are legally permissible. Simply having a homestay licence at the time of purchase of the Japan property does not guarantee future legality. Some older Japan houses are sold with a homestay licence, but the residents’ committee of properties can ban operations if any neighbour complains, even if the property is licenced.
12. How many types of B&B homestay licences are available in the Japan real estate market?
There are 2 types of B&B homestay licences for Japan houses: standalone property licences, and entire building licences.
Many Japan property developers in the market claim that their properties have homestay licences, but buyers should ascertain which licence is being offered. If the licence is for the entire building, any disagreement would result in failure to operate as B&B rentals, even if there’s only one owner who decides not to go for the B&B business.
Therefore, it is recommended that buyers opt for Japan property for sale with standalone homestay licences, which allow each unit to operate independently, ensuring that owners will not be affected in the future. And Japan real estate owners can determine their own operating hours and offer greater flexibility in operation, whether they want to pause or continue.
However, applying for a B&B homestay licence is a complicated process that requires a significant amount of effort, time and money. As a reliable Japan property developer, FMI JAPAN insists on obtaining standalone homestay licences for each unit of our Japan property developments.
13. Can retirees or self-employed individuals be eligible to obtain a mortgage for buying Japan real estate?
Banks in Japan primarily consider the applicant’s income and repayment ability when approving a mortgage for Japan houses or other types of real estate. Retirees and self-employed individuals with non-stable income may find it more challenging to obtain a mortgage loan for Japan property investment. While some banks or financial institutes would still offer mortgages to them with a more rigorous screening process and higher requirements, so as a Japan property developer, we would advise potential investors to take note.
14. What causes rejection of mortgage applications for overseas investors in Japan real estate?
The following factors may cause failure in mortgage applications for Japan real estate investment – Insufficient personal income, excessive debt, poor credit ratings and age factors are the most common reasons for mortgage application denials. In addition, for foreign applicants over the age of 65 upon retirement, some banks may impose additional requirements on the income and credit ratings.
15. Is it necessary to conduct inspections on a new Japan property after handover?
Japan houses for sale are renowned for their high quality, with strict regulations governing construction procedures, building materials, earthquake-resistant structures and evacuation equipment. Generally, no significant defects in Japan real estate for sale have been discovered upon completion. Yet, owners of new Japan houses can appoint licensed construction supervisors to conduct a comprehensive inspection of the property’s structure, appearance, interior, water and electrical systems, etc.
16. What can Japan real estate buyers do if any problems are found after moving in?
New buildings in Japan are typically covered by a ten-year quality guarantee, during which a Japan property developer is required to repair and bear related costs or offer compensation. So, if buyers of Japan houses discover any defects caused by construction, they can seek repairs from their Japan real estate developers.
For new houses, new houses, and second-hand houses in Japan, FMI JAPAN provides you with the most professional solutions
Whether you are considering buying property in Japan for the first time or are looking for a suitable Japanese construction project, FMI JAPAN Co., Ltd. can provide you with the most professional solutions
Make an appointment now for exclusive service and get free consultation on your Japanese real estate planning