New Build or Resale? How to Check Earthquake Standards and Reserves Before Buying in Japan

"New builds feel safer but cost more; resales are cheaper but who knows what you're getting" — that's the dilemma many overseas readers face when deciding between a new build and a resale property in Japan. Judging purely on the price gap, though, means missing issues that matter after you move in: earthquake resistance and future repair costs.

This article walks through three checks worth making regardless of whether you buy new or resale: earthquake standards, non-conformity liability (formerly called defect liability), and the building's repair reserve fund.

What's actually behind the price gap between new and resale?

Resale units are generally priced lower than a comparable new build, but that gap isn't simply a matter of age. New builds price in the latest fixtures and a statutory warranty (liability for structural and waterproofing elements for 10 years after handover), while a resale property's real value depends heavily on the previous owner's maintenance and repair history.

So rather than assuming "resale is simply the better deal," you need to weigh the new build's warranty terms against the resale unit's maintenance history individually.

When did Japan's earthquake standards last change?

Japan significantly revised its earthquake resistance standards under the Building Standards Act as of June 1, 1981; buildings that received building confirmation after that date are generally referred to as meeting the "new earthquake standard." For wooden houses, a further revision to the Act's enforcement order in 2000 spelled out foundation and joint specifications in more detail — worth knowing as a rough marker when you're checking a resale property's history.

That said, "new standard equals safe, old standard equals dangerous" is too simple a line to draw. In practice, checking the specific building's seismic assessment and any retrofit history matters more than the date alone.

How far does 'non-conformity liability' extend on a resale property?

For a resale property, it's essential to confirm before signing how liability is handled if a defect that doesn't match the contract terms — a roof leak, termite damage — turns up after handover. Under the Civil Code, buyers generally have the right to demand repair (cure) or a price reduction, but in a private sale between individuals, or where the seller isn't a licensed real estate broker, a special contract clause can shorten this liability period considerably.

When a licensed real estate broker is the seller, any special clause less favorable to the buyer than the Civil Code default is generally void unless it sets the liability period at 2 years or more from handover — offering buyers some baseline protection. Even so, exactly what's covered (structural elements only, or fixtures too) varies by contract, so understanding the statute isn't a substitute for reading the actual contract text.

Is today's repair reserve fund amount enough to judge by?

When buying a condo, it's not enough to check the current monthly repair reserve — you need to see the planned future increases too. Many condos start with a low reserve fee for new or newer buildings and raise it in stages over time (a "step-up" reserve schedule) to keep early-year costs down. Looking only at the brochure figure can be misleading, so check the long-term repair plan for the scheduled future increases.

In the SUMIMOTO Hub app, the AI valuation feature lets you check a property's age and earthquake-standard reference points in multiple languages, and the 24/7 AI advisor can answer questions about non-conformity liability and how to read a repair reserve schedule. For an actual seismic assessment review or final contract check, we'd recommend consulting a licensed real estate agent, architect, or judicial scrivener.