Last Updated: February 2026
Choosing between Japan vs Singapore real estate investment is a decision that can cost foreign investors hundreds of thousands of dollars — or save them. While both markets attract international capital, Singapore’s 60% Additional Buyer’s Stamp Duty (ABSD) has fundamentally changed the calculus. For a $500,000 property, you’ll pay roughly $525,000 in Japan versus $820,000 in Singapore. This guide breaks down every factor that matters for foreign investors in 2026.
Japan has ranked #1 globally for real estate investment prospects for three consecutive years according to ULI’s Emerging Trends report. Meanwhile, Singapore’s punitive ABSD — doubled from 30% in April 2023 — has driven Singaporean investors themselves to look abroad. The result: Singaporeans now account for 50% of foreign property transactions at major Japan investment firms.
Japan vs Singapore: Market Overview for Foreign Investors
Both markets represent mature, developed Asian economies with strong rule of law and transparent real estate systems. However, their approaches to foreign investment diverge dramatically.
| Factor | Japan | Singapore |
|---|---|---|
| Foreign buyer restrictions | None | 60% ABSD + property type limits |
| Property prices (per sqm) | $5,300–10,000 USD | $15,000–19,000 USD |
| Market size ranking (Asia Pacific) | #1 | #3 |
| 2025 transaction volume (APAC share) | 36% | Lower |
| Foreign investment trend | Strong growth | Declining due to ABSD |
CBRE’s 2025 Asia Pacific Investor Intentions Survey found that 86% of surveyed investors described their interest in Japan as “very strong” or “fairly strong.” Tokyo specifically has maintained its position as the top city globally for real estate investment prospects.
Ownership Rights and Restrictions Compared
Japan offers foreign buyers complete parity with citizens. Singapore imposes significant restrictions beyond the famous ABSD.
Japan: Full Ownership Rights
Foreigners in Japan enjoy identical ownership rights to citizens:
- Full freehold available — Own both land and buildings permanently
- No property type restrictions — Houses, condos, commercial, agricultural (with permission)
- No limit on number of properties — Buy as many as you want
- No citizenship or residency requirements — Even tourists can purchase
- Same financing terms available (when qualified)
The only recent changes involve disclosure: starting April 2026, foreign corporations must declare the nationality of representatives during registration. Non-residents must notify the Bank of Japan within 20 days of investment property purchases.
Singapore: Significant Restrictions
Singapore limits foreign ownership beyond the ABSD penalty:
- Landed properties largely prohibited — Foreigners cannot buy houses, bungalows, or terrace homes (Sentosa Cove is the main exception)
- HDB flats forbidden — Public housing (80% of Singapore homes) unavailable to foreigners
- Condominiums only — Practical option for most foreign buyers
- LDAU approval required — Land Dealings Approval Unit must approve any landed property purchase by foreigners
Winner: Japan — Full ownership rights with no restrictions versus significant limitations in Singapore.
Entry Costs: Japan’s Low Barriers vs Singapore’s 60% ABSD
This comparison alone often decides the investment destination. Singapore’s ABSD makes the market prohibitively expensive for most foreign investors.
Japan Transaction Costs
| Cost Item | Rate | Notes |
|---|---|---|
| Agent commission | 3% + ¥60,000 + 10% tax | Standard across Japan |
| Registration tax | 1.5–2.0% | Of assessed value |
| Stamp duty | ¥10,000–60,000 | Based on price tier |
| Real estate acquisition tax | 3–4% | Of assessed value |
| Judicial scrivener fees | ¥50,000–200,000 | Flat fee |
| Total | 5–10% | Of purchase price |
Singapore Transaction Costs (Foreigners)
| Cost Item | Rate | Notes |
|---|---|---|
| Additional Buyer’s Stamp Duty (ABSD) | 60% | Of purchase price — mandatory for foreigners |
| Buyer’s Stamp Duty (BSD) | Up to 6% | Tiered scale |
| Legal fees | SGD 2,500–5,000 | Conveyancing |
| Total | 64–70% | Of purchase price |
Real Cost Comparison
For a property valued at $500,000 USD equivalent:
| Market | Property Price | Transaction Costs | Total Investment |
|---|---|---|---|
| Japan | $500,000 | $25,000–50,000 (5–10%) | $525,000–550,000 |
| Singapore | $500,000 | $320,000–350,000 (64–70%) | $820,000–850,000 |
The Singapore property costs 56% more than the identical Japan investment before you even factor in the higher base prices.
Winner: Japan — Total entry costs of 5–10% versus 64–70% in Singapore.
Rental Yield Comparison: Tokyo vs Singapore
Rental yields tell a more nuanced story, though Japan currently edges ahead.
| Market | Gross Rental Yield | Recent Trend |
|---|---|---|
| Tokyo | ~3.44% | +7.3% YoY rent growth (23 wards) |
| Singapore | ~3.29–3.36% | Stable |
| Tokyo central 5 wards | Higher yields | +9.9% YoY rent growth |
Tokyo’s rental market has shown remarkable strength. Savills’ Q1 2025 report documented 7.3% year-over-year rent growth across Tokyo’s 23 wards and 9.9% in the central five wards (Chiyoda, Chuo, Minato, Shibuya, Shinjuku).
Yield Adjusted for Entry Costs
Here’s where Japan’s advantage becomes overwhelming. Consider the effective yield on total capital invested:
Japan example ($500,000 property):
- Total investment: $525,000
- Annual rent (3.44% gross): $17,200
- Effective yield on investment: 3.28%
Singapore example ($500,000 property):
- Total investment: $820,000
- Annual rent (3.3% gross): $16,500
- Effective yield on investment: 2.01%
The ABSD dilutes Singapore’s rental returns by nearly 40%.
Winner: Japan — Higher base yields plus dramatically lower entry costs.
Capital Appreciation Potential
Both markets have shown price growth, though dynamics differ.
Japan: Steady Upward Trend
- Tokyo land prices rose 7.7% in 2025 — the 13th consecutive year of increases
- Low interest rates (0.5–0.75% benchmark) support prices
- Weak yen attracts foreign capital
- Infrastructure investments (Osaka Expo, IR developments) create regional opportunities
Singapore: Mature, Stable Growth
- Private home prices forecast to grow 3–4% in 2026
- Government cooling measures limit speculation
- Strong fundamentals but high base prices
- ABSD reduces foreign buyer competition
For capital appreciation alone, markets are comparable. But Japan’s lower entry costs mean you start from a much better position. A 5% appreciation on a $525,000 Japan investment ($26,250) delivers the same dollar return as a 3.2% appreciation on an $820,000 Singapore investment.
Winner: Tie — Both markets appreciate, but Japan’s lower entry cost amplifies returns.
Exit Costs and Capital Gains Tax
This is one area where Singapore has an advantage on paper — though it’s less meaningful than it appears.
Japan Capital Gains Tax
| Holding Period | Tax Rate (Non-Residents) |
|---|---|
| 5 years or less | 39.63% |
| More than 5 years | 20.315% |
Japan taxes capital gains with no exemptions for non-residents. The tax applies to profit (sale price minus purchase price and costs), not the total sale amount.
Singapore Capital Gains Tax
Singapore has no general capital gains tax on property. However, properties sold within 3 years face Seller’s Stamp Duty (SSD):
| Holding Period | SSD Rate |
|---|---|
| Year 1 | 12% |
| Year 2 | 8% |
| Year 3 | 4% |
| After 3 years | 0% |
True Exit Cost Analysis
Despite Singapore’s “no capital gains tax” advantage, the math still favors Japan for foreigners:
Scenario: 30% appreciation over 5 years
Japan:
- Entry: $525,000 total
- Sale price: $650,000
- Profit: $125,000
- Capital gains tax (20.315%): $25,394
- Net return: $99,606 (19% ROI)
Singapore:
- Entry: $820,000 total
- Sale price: $650,000
- Capital gains tax: $0
- Net return: -$170,000 (you lost money)
You need over 64% appreciation in Singapore just to break even. Japan’s capital gains tax is irrelevant if Singapore’s entry costs prevent you from ever profiting.
Winner: Japan — Despite higher exit taxes, lower entry costs create achievable profits.
Financing Options for Foreign Buyers
Neither market makes financing easy for non-residents, though approaches differ.
Japan Financing
| Buyer Status | Mortgage Availability | Typical LTV |
|---|---|---|
| Permanent resident | Most banks | Up to 90% |
| Long-term visa (5+ years) | Select banks | 70–80% |
| Non-resident | Very difficult | Cash typical |
Japan’s benchmark interest rate of 0.5% (raised to 0.75% in December 2025) keeps borrowing costs among the lowest in Asia. But non-residents typically buy with cash.
Singapore Financing
| Buyer Status | Mortgage Availability | Typical LTV |
|---|---|---|
| Foreigner | Available | Up to 75% |
| Non-resident | More restrictions | 45–55% |
Singapore offers better mortgage access to foreigners, but the ABSD creates a paradox: even with 75% financing on the property price, you still need cash for the 60% ABSD. A $500,000 property requires:
- Down payment (25%): $125,000
- ABSD (60%): $300,000
- Other costs (~6%): $30,000
- Total cash needed: $455,000
The financing “advantage” barely helps when you need $455,000 cash regardless.
Winner: Tie — Neither market serves non-resident borrowers well.
Currency and Exchange Rate Considerations
The weak yen has been a significant driver of Japan’s appeal to foreign investors.
Current Exchange Rate Advantage
According to South China Morning Post, S$1 now equals approximately 117.6 yen — roughly 12% stronger than three years ago. For a Singaporean buying a ¥60 million Tokyo property:
- Today: S$510,000
- Three years ago: S$580,000
- Savings: S$70,000 before any negotiation
Currency Stability Comparison
| Currency | Characteristics | Investor Implication |
|---|---|---|
| Japanese Yen (JPY) | Currently weak, volatile | Entry advantage now, potential appreciation upside |
| Singapore Dollar (SGD) | Strong, stable | Lower currency risk, but no entry discount |
Winner: Japan — Weak yen provides immediate purchasing power advantage.
Property Types Available to Foreigners
Japan’s openness extends to all property categories. Singapore’s restrictions limit options.
Japan: Full Access
- Single-family homes (detached houses)
- Condominiums (mansions)
- Commercial buildings
- Mixed-use properties
- Agricultural land (with committee approval)
- Vacant land
- Akiya (abandoned houses) — increasingly popular with foreign investors
Singapore: Condos Only (Effectively)
- Condominiums — primary option
- Executive condominiums (after 5-year minimum occupation period)
- Sentosa Cove landed properties — requires LDAU approval
- Commercial/industrial — available but different ABSD rules
For investors wanting diversification into different property types, Japan is the only viable option.
Winner: Japan — Full access to all property types versus condo-only limitations.
Freehold vs Leasehold Structures
Both markets offer freehold and leasehold, but availability differs significantly.
Japan: Freehold Standard
Most properties in Japan, especially outside central Tokyo, are freehold (所有権/shoyuken). You own the land and building permanently with no expiration. Leasehold exists but is less common and clearly disclosed.
Singapore: Leasehold Dominant
- 99-year leasehold is the norm for most condos
- Freehold exists but commands significant premiums (20–30% more)
- Leasehold properties depreciate toward expiration
- 60+ year old leasehold properties face financing and resale challenges
For long-term holds or inheritance planning, Japan’s freehold availability is a major advantage.
Winner: Japan — Freehold is standard versus Singapore’s leasehold-dominant market.
Market Outlook 2026: Which Market Has Better Prospects?
Japan Outlook
Bullish factors:
- ULI ranking: #1 globally for third consecutive year
- 36% of Asia Pacific transaction volume in Q1 2025
- Low interest rates despite recent hikes
- Strong rental growth momentum
- Weak yen continues attracting foreign capital
- Osaka Expo and IR development creating regional opportunities
Risks:
- Yen could strengthen, reducing entry advantage
- Gradual regulatory tightening on foreign disclosure
- Earthquake/natural disaster exposure
Singapore Outlook
Bullish factors:
- Strong fundamentals and rule of law
- No capital gains tax for long-term holders
- Stable currency
- Regional financial hub status
Risks:
- 60% ABSD unlikely to decrease (cooling measure)
- High prices limit yield potential
- Government may implement additional restrictions
Winner: Japan — Stronger growth momentum and significantly lower barriers to entry.
Japan vs Singapore Real Estate Investment: Which Market is Right for You?
Choose Japan If:
- You want lowest possible entry costs
- You’re a non-resident investor
- You prioritize rental yield
- You want full ownership rights and property type flexibility
- You’re looking to benefit from currency advantages
- You plan to build a portfolio over time
Choose Singapore If:
- You’re a Singapore citizen or PR (ABSD is much lower)
- You prioritize zero capital gains tax and plan 10+ year holds
- You want English-language ease throughout the process
- You value currency stability over entry cost savings
- You already own Japan property and want geographic diversification
For Most Foreign Investors: Japan Wins
The numbers are clear. For a non-resident foreigner comparing Japan vs Singapore real estate investment, Japan offers:
- 56% lower total entry costs
- Higher rental yields
- Full ownership rights
- More property type options
- Freehold availability
- Favorable exchange rates
Singapore’s “no capital gains tax” advantage cannot overcome the 60% ABSD barrier. You need extraordinary appreciation just to recover your entry costs.
This explains why Singaporeans themselves have become Japan’s top foreign buyer demographic — they’re voting with their capital against their own market’s restrictions.
For comprehensive guidance on the Japan buying process, see our complete guide to buying property in Japan as a foreigner. If you’re interested in Tokyo specifically, explore our Tokyo investment guide. Singaporean investors should also check our upcoming guide for Singaporean buyers.
FAQ: Japan vs Singapore Property Investment
Is it better to invest in Japan or Singapore property as a foreigner?
For most foreign investors, Japan offers significantly better value. Singapore’s 60% ABSD adds $300,000+ to a $500,000 purchase, while Japan’s total transaction costs run 5–10%. Japan also provides full ownership rights with no property type restrictions. The only scenario favoring Singapore is if you’re a citizen or PR exempt from the higher ABSD rates.
How much is ABSD for foreigners buying property in Singapore?
Foreigners pay 60% Additional Buyer’s Stamp Duty on all residential property purchases in Singapore. This rate was doubled from 30% in April 2023. Combined with Buyer’s Stamp Duty (up to 6%), total stamp duties for foreigners reach 66% or more of the purchase price. This makes Singapore one of the world’s most expensive markets for foreign real estate investment.
Can foreigners buy freehold property in Japan?
Yes. Foreigners can buy freehold property in Japan with the same rights as Japanese citizens. There are no restrictions based on nationality or residency status. You can own land and buildings permanently, pass them to heirs, or sell freely. This contrasts with Singapore, where most properties are 99-year leasehold and landed properties are largely restricted from foreign ownership.
What are rental yields in Tokyo compared to Singapore?
Tokyo offers gross rental yields of approximately 3.44% versus Singapore’s 3.29–3.36%. More importantly, Tokyo rents grew 7.3% year-over-year in 2025 (9.9% in central wards), showing strong momentum. When you factor in the massive difference in entry costs, Tokyo’s effective yield on total investment far exceeds Singapore’s for foreign buyers.
Why are Singaporeans investing in Japanese real estate?
Singaporeans have become Japan’s top foreign buyer demographic because they face the same 60% ABSD as other foreigners when buying in their home market. By investing in Japan instead, they avoid this massive penalty while accessing a market with strong fundamentals, weak yen pricing advantages, and no foreign buyer restrictions. Channel News Asia reports that Singaporeans now account for 50% of foreign transactions at some major Japan investment firms.
Official Sources and Resources
| Source | Description |
|---|---|
| IRAS Singapore — ABSD Rates | Official Singapore stamp duty information |
| Singapore Land Authority — Foreign Ownership | Restrictions on foreign buyers |
| Ministry of Finance Japan — Foreign Exchange | Japan regulations for foreign investment |
| National Tax Agency Japan | Non-resident taxation rules |
| ULI — Emerging Trends Asia Pacific 2026 | Market rankings and outlook |
| CBRE — Asia Pacific Investor Survey 2025 | Investment trends data |
Ready to explore Japan real estate investment? Start with our complete guide for foreign buyers or dive into specific markets like Tokyo.