Case Study
A Singaporean couple bought and renovated a second home in Minato Ward, Tokyo.
Passionate about Japan, a Singaporean couple set out to find a Tokyo second home that could double as a monthly rental property when not in use. From navigating Minato Ward’s high property prices to securing a 4.3 million yen price reduction and solving complex renovation structural challenges, discover how strategic negotiation and expert support turned a dated 1968 apartment into a stunning, functional sanctuary.
Overview
A Singaporean couple with a fondness for Japan—having previously studied in Tokyo and visited the country multiple times a year with their family—came across the AXIOS/IREA website. They became interested in the idea of purchasing a second home in Tokyo and renting it out as a monthly rental property during periods when they were not using it.
Challenges
Initially, the client was considering purchasing a property in the Takanawa area of Minato Ward. Land prices in this district have continued to rise significantly compared to other parts of Tokyo’s 23 wards, and the location offered promising rental demand—specifically as a “monthly rental” (short-term furnished rental)—during periods when the owner was not using the property personally.
However, property prices in the area were extremely high.
Solutions
Since they knew Tokyo inside out, they were aware of this from the start; consequently, they targeted older apartments and planned to renovate the interiors.
Before they arrived in Japan, I compiled a list of properties—including those in the surrounding areas—focusing on individual condominium units where land values were rising and demand for monthly rentals was anticipated.
Upon their arrival, we viewed four properties, including some that had already been renovated.
Ultimately, they decided on a unit in a condominium building constructed in 1968 in the Takanawa area—a property they had been interested in from the start.
Although the area is densely built-up, the balcony faces the grounds of a long-established temple, providing an open, unobstructed view.
I had confirmed that the seller had inherited the property, so I anticipated there might be some room for price negotiation.
The interior was quite dated; the person who inherited it had lived there for decades, and it appeared no major renovations had ever been carried out.
The seller acknowledged that living there without renovation would be difficult; given the building’s age (predating current seismic standards) and the necessity of renovation, they agreed to a price reduction of 4.3 million yen.
However, due to inheritance tax considerations, we had to wait until the end of March for the handover, even after signing the sales contract in December.
The clients wanted to alter the floor plan, but while we were trying to draft renovation plans, we couldn’t determine if moving the kitchen was feasible without inspecting the underlying structure.
I asked the seller—albeit as a long shot—if we could inspect the structure by removing the flooring before the handover, under the condition that we would restore the floor at our own expense should the sale fall through; however, they did not agree to this.
In this situation, Hikichi-san from AXIOS/IREA happened to discover that a unit with the same layout on a different floor was undergoing renovation. We were allowed to view it and found it was stripped down to the bare structure; by taking photos and consulting the contractor handling the renovation, we confirmed that moving the kitchen was indeed possible.
Results
After the handover, renovation work began to realize the clients’ desired layout and design, with AXIOS—the company managing the condominium—acting as an intermediary and interpreter between the clients and the contractor. The renovation includes fixtures ordered from IKEA—such as the L-shaped kitchen requested by the wife, who loves cooking—with assembly and installation handled by IKEA themselves.
Five months after handover, the space has been transformed into a beautiful, wonderful home—unrecognizable from its original state.
It will provide a comfortable place for the family to stay when visiting Tokyo, and is also expected to generate income through short-term rentals.
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