Seasoned investors usually don't confine themselves to local properties. From nearby markets like Johor Bahru to those further away like Bali and Manchester, overseas property has long been part of the playbook.

And for a while now, Japan has been trending, with its yen weakening against Singapore dollar and all. But more recently, Tokyo in particular has moved up the list. It seems that investors are going for renovated homes in Central Tokyo with "like-new" interiors that are still affordable, with entry price ranging from 48M (roughly $380K) to 180M (roughly $1.43M). New launch projects in prime districts like Shinjuku are also seeing stronger take-up.

But does Tokyo actually offer something Singapore doesn't? Or are we just looking at the same asset class through a different lens?

Let's cut straight to the most significant difference: what it actually costs to get in.

In Singapore, if you're a citizen (SC) buying a second or third property, you're looking at 20-30% Additional Buyer's Stamp Duty (ABSD). For permanent residents (SPR), it's 5-35%. That's on top of the standard Buyer's Stamp Duty of up to 6%.

That means, on a $1 million property, you're paying up to $350,000 in stamp duties alone before you even factor in legal fees.

Tokyo? Zero additional foreign buyer tax. You pay the same as a Japanese citizen: real estate acquisition tax at 3% of assessed value (which is typically lower than market price), registration and license tax, and stamp duty on the purchase documents. In total, the purchase tax amounts to around 3-4% of the price.

For a $1M property, here's how the maths works out:

That's a $320,000-330,000 difference!

Actually, gross rental yields in both cities are at comparable ranges. Tokyo's central wards typically deliver 2.5% to 4%, while condos in Singapore's Core Central Region (CCR) hover around 2.5-3%.

But yields don't exist in a vacuum. What matters is yield on your total capital deployed.

If you put $1,350,000 into a Singapore property (including all duties) earning 3% gross on the $1,000,000 asset value, your effective yield on capital is about 2.2%. The same asset in Tokyo, with $1,040,000 deployed, gives you an effective yield closer to 2.9%. This does not account for ongoing costs such as property management, maintenance, vacancy, or currency fluctuations, which can affect net returns.

Tokyo has also been posting stronger rental growth lately, with a reported 7.1% YoY rent increase across Tokyo's 23 wards in Q42025, and 9% YoY growth in the central five wards. On the other hand, Singapore's rental market has only begun to stabilise after cooling down in 2024.

Tokyo's residential prices have been on a steady climb since May 2020. In March 2026, the average price per sqm for existing condos in Greater Tokyo was 863,400, a 9.3% YoY increase. Whereas the average total price for an existing condo was 55.21M, up 11.6% from the previous year.

Singapore's private residential market has also performed well, with resale condos climbing 33.36% in the past 5 years alone.

Source: PropNex Investment Suite

Here's where timing matters. The Singapore dollar currently buys around 120-125 yen. roughly 20% more purchasing power than when Japan reopened its borders in October 2022.

This currency tailwind has effectively given Singaporean buyers a discount on Tokyo properties. A unit that was equivalent to $1,000,000 in 2022 might now only cost $830,000 (not counting appreciation).

Of course, currency cuts both ways. If the yen strengthens, your holding costs (maintenance, property tax, insurance) become more expensive in SGD terms. And when you eventually sell, a stronger yen could boost your returns, whereas a weaker yen could erode them.

Singapore has genuine advantages:

Transparency and familiarity. Everything operates in a language you speak, from legal frameworks, banking, to the property transaction itself. You don't need a translator or bilingual agent. In Tokyo, most transactions are conducted in Japanese, and navigating the system without local expertise is challenging.

Financing accessibility. If you're a SC or PR buying locally, mortgage access is straightforward. In Tokyo, non-residents have virtually zero access to Japanese bank mortgages. You're effectively buying with cash or financing from your home jurisdiction, which significantly changes your ability to leverage and scale your portfolio. Even residents on long-term visas face a more complex approval process.

Market liquidity. Due to land scarcity, Singapore properties generally have deep buyer pools. So, a well-priced unit can sell within 2-4 months. Tokyo's central wards are also quite liquid but non-central locations can take 6 months or longer.

Long-term stability. Singapore's property market has demonstrated consistent appreciation with relatively low volatility. The government actively manages supply and demand through land sales and cooling measures. It's a mature, well-regulated market with strong institutional backing.

No capital gains tax. Singapore doesn't tax capital gains on property sales (though Seller's Stamp Duty applies if you sell within three years). Japan taxes capital gains at 39.63% for holdings under five years, or 20.315% for longer holds. Non-residents may also face withholding taxes.

It really depends on your property goals.

Tokyo properties may be beneficial for investors who:

• Prioritise quicker cash flow. Lower entry costs plus slightly higher yields mean positive cash flow is achievable from year one. Whereas Singapore's high stamp duties require longer holding periods to break even.
• Want to diversify their assets.
• Have no issue navigating financing in Japan.

However, Singapore properties might be the better option if you:

• Value operational simplicity. Managing a property in a language and legal system you understand has real value, especially for hands-off investors.
• Would rather deal with Singapore financing. Local mortgage access at competitive rates remains a significant advantage.
• Prefer capital preservation over yield maximisation. Singapore's track record of stable appreciation with government backstops appeals to conservative investors.

Honestly, the real question should not be "Tokyo or Singapore?" It should be "What am I trying to achieve with this investment?"

If you're looking to diversify and you already own so many properties in Singapore, then Tokyo does seem compelling, especially given their zero foreign buyer tax policy. But if you're only buying your second property, and you want to prioritise stability and convenience, then investing locally might be what you need.

Ultimately, neither option is the "better" choice since both markets offer different prospects. It just depends on your needs and goals as an investor.

In practice, most investors don't choose between Tokyo and Singapore in isolation. The more strategic question is when each market fits into your overall property journey. Lower-entry markets like Tokyo may improve cash flow earlier on, but they do not necessarily replace the long-term capital preservation role that Singapore property tends to play. Understanding how each asset fits into your portfolio often matters more than comparing them side by side.

This is why the question is less about choosing one market over the other, and more about how each decision fits into your broader investment journey.