1. Single condominium units in core Tokyo
The most common entry point for foreign investors is a single condominium unit in central Tokyo. Typical tickets range from 30–80 million yen, often in business or lifestyle hubs such as Shinjuku, Shibuya, Meguro or Minato wards. These units are relatively easy to understand, easy to manage and easy to exit.
The main advantages are liquidity and depth of demand: there is a constant flow of tenants and buyers around core stations. The main drawback is pricing power on the seller side. GRM corridors are tight, competition is strong and genuinely mispriced assets are rare. To create an edge in this segment, you need station-level data, not just a good broker story.
2. Compact units in strong commuter stations
A second category consists of compact 1R/1K units near strong commuter lines, usually 8–20 minutes away from the Yamanote loop by train. Stations like Nakano, Kitasenju or certain stops along the Chuo, Keihin-Tohoku or Tokyu lines can offer slightly better GRM while maintaining solid tenant demand.
The logic here is simple: salarymen and students trade some "centrality" for a slightly longer ride, but still need fast and reliable access to core employment hubs. For investors, this can mean a better yield profile if age, layout and micro-location are well chosen.
3. Small apartment buildings in residential wards
More experienced foreign investors sometimes graduate from single units to small apartment buildings (3–12 units) in residential wards. The ticket size increases significantly, but so does the ability to influence value through capex decisions, repositioning and rent optimisation.
These buildings typically sit in stable, middle-income areas with decent but not spectacular rental growth. The risk is higher concentration on a single asset and more operational complexity. The benefit is more control over the building strategy and a better alignment with how local professional investors think about portfolios.
4. Regional core-city strategies
A subset of investors deliberately allocate capital outside Tokyo to cities such as Osaka, Fukuoka, Sapporo or Nagoya. The thesis is straightforward: accept slightly lower liquidity and more local specificities in exchange for stronger headline yields or lower GRM levels.
This approach requires more homework. Data is often thinner, local economic drivers are more concentrated and exit paths can be narrower. It can work, but it is not a "shortcut" to easy money. Without a disciplined framework and local knowledge, it can become a hidden risk amplifier.
5. Niche assets: student stock, share houses and family units
Some foreign investors are attracted to niches such as student housing near universities, co-living / share houses, or larger family units in specific school districts. These segments can occasionally deliver attractive risk-adjusted returns, but they come with specific operational and regulatory considerations.
Niche assets require an even clearer thesis: who is the tenant, how stable is demand, what happens if regulations or preferences shift, and who will buy the asset from you in five or ten years?
How to use this typology in your own strategy
The goal of this typology is not to tell you which asset type is "best", but to help you align the asset with your real objective: yield, liquidity, positioning or a mix. A conservative first allocation might focus on single units in strong Tokyo stations. A more advanced allocation could combine a core Tokyo base with select commuter or regional plays.
For a deeper, structured view on how to choose your entry strategy, you can refer to the main pillar guide “Investing in Japan — Complete Guide”, which connects these asset types to station selection, GRM corridors and financing.