Japan Moves to Strengthen Oversight of Land Purchases by Foreign Individuals and Entities

The Japanese government has made clear its intention to significantly strengthen both oversight and regulation of land and property purchases by foreign individuals and foreign-owned entities. On the 16th, the Cabinet Secretariat, the Ministry of Justice, and the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) each announced related measures, signaling a shift toward more detailed tracking of property ownership.

According to a survey released by the Cabinet Secretariat on the same day, foreign individuals and foreign-affiliated corporations acquired land or buildings 3,498 times during fiscal year 2024 in areas surrounding critical facilities—such as Self-Defense Force bases, nuclear power plants, and border islands. By prefecture, Tokyo recorded the highest number with 1,558 transactions, followed by Kanagawa, Chiba, Hokkaido, and Fukuoka. By country or region, China accounted for nearly half of all cases, followed by Taiwan, South Korea, the United States, and Vietnam.

The surveyed areas included land around SDF facilities, military bases, and the Ministry of Defense headquarters in Ichigaya. However, the government reported that no recommendations or orders had been issued to halt land use that could interfere with the functioning of critical facilities.

At a press conference on the 16th, Economic Security Minister Kimi Onoda stated:

“By enhancing information on property ownership and appropriately disclosing the information we have gathered, we aim to alleviate public concerns regarding land acquisitions by foreign nationals.”

Her remarks underscored the government’s emphasis on transparency as a means of addressing growing public anxiety.

In response to these findings, the Ministry of Justice announced that beginning in fiscal year 2026, individuals will be required to declare their nationality when registering real estate ownership transfers, including sales and inheritance. Applicants will be required to submit identification documents confirming nationality. This requirement will apply to Japanese nationals as well. Nationality information will not be listed in public real estate registries due to privacy concerns but will be retained as internal government data. The Digital Agency plans to establish a government-wide database to share this information by fiscal year 2027.

MLIT also revealed that starting in April 2026, foreign corporations purchasing large-scale land will be required to report the nationality of their representative. In addition, if a majority of executives or shareholders share the same nationality, that nationality must also be reported. These measures aim to prevent inappropriate use of land, particularly involving water resources and forests. MLIT further disclosed that foreign individuals or entities were involved in 49 cases of groundwater use across 12 municipalities, marking the government’s first nationwide survey of such activity.

Meanwhile, the Ministry of Finance announced plans to expand reporting requirements to include foreign nationals purchasing property for residential purposes. Previously, reporting obligations applied only to investment-driven acquisitions. The change follows concerns that some properties declared as residential are not actually being used as such. The revised rules are scheduled to take effect in April 2026.

Within the ruling coalition, discussions are underway to draft legislation in the 2026 ordinary session of the Diet to further tighten regulations on land acquisitions by foreign individuals and foreign capital. By improving transparency in real estate transactions, the government aims to reduce public unease while strengthening Japan’s economic security framework.


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Japan Moves to Strengthen Oversight of Property Purchases by Foreign Nationals

By Hajime Saito
X: @hajimesaitoYJC

Source: Nikkei (Dec/16/2025)