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Foreigners Shopping for Japanese Real Estate... Authorities Tighten Regulations After the Fact

Around 3,500 Cases of Real Estate Acquisitions by Foreigners and Corporations
Near Security and Sensitive Facilities
Ministry of Justice Revises Related Laws to Strengthen Regulations

Foreigners Shopping for Japanese Real Estate... Authorities Tighten Regulations After the Fact People are looking at Tokyo Tower. Photo by Yonhap News

The Japanese government will tighten regulations on real estate acquisitions by foreigners starting in April next year. Going forward, individuals seeking to acquire real estate in Japan will be required to submit their nationality information. Authorities have decided to impose these restrictions after observing a surge in property purchases by foreigners and foreign corporations, particularly those of Chinese descent.


According to reports from international media outlets including the Yomiuri Shimbun, the Ministry of Justice announced on the 16th that it will revise the enforcement ordinance to add a section for the acquirer's nationality on real estate registration applications. This regulation will take effect from the 2026 fiscal year (April 2026 to March 2027).


The government also plans to require the submission of documents such as passports to verify nationality when applying for real estate registration. In addition, the Digital Agency's database will be organized so that government bodies can share information about property owners' nationality. However, to protect privacy, nationality information will not be recorded in the official real estate registry.


In particular, for corporations acquiring important land, such as areas near defense facilities, it will be mandatory to register the relevant nationality if individuals of the same foreign nationality hold a majority of executive positions or voting rights.


The ruling Liberal Democratic Party and its coalition partner, Nippon Ishin no Kai, agreed to strengthen regulations on land acquisitions by foreigners and foreign capital when they formed their coalition government in October.


Recently in Japan, the number of real estate transactions by foreigners-especially those of Chinese descent-near security and sensitive facilities has surged, sparking national security concerns. On this day, the Cabinet Office announced that in 2024, there were 3,498 cases of land and building acquisitions near important facilities by foreigners or foreign corporations. This figure is based on the survey conducted under the Act on the Regulation of Use of Important Land, which has been in effect since 2022, and represents the second such survey since the law's implementation.


Of the properties acquired by foreigners around the 583 designated locations under this law, most were apartments or multi-family housing. By nationality, Chinese nationals accounted for 1,674 cases, representing 47.9% of the total. This was followed by Taiwan with 414 cases, South Korea with 378 cases, and the United States with 211 cases.


By location, Tokyo-home to facilities such as the Ground Self-Defense Force Sanitation School and the Acquisition, Technology & Logistics Agency’s Ship Equipment Research Institute-had the highest number of transactions, with 1,558 cases.


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