In order to better understand the scope of the purchase of forestry by foreign funds and to protect water sources, Saitama Prefecture is planning to introduce rules which will require land transactions to be reported in advance to authorities.

The proposal will target 18 cities and towns in the northern part of Saitama.  It will be submitted to the prefectural assembly this month, and may be enacted as early as October of this year.

Similar legislation is also going to be presented to the Diet session later this month, but it does not specifically mention foreign capital.

Saitama’s proposal would obligate the owner of forestry to inform the prefecture of the planned sale at least one month prior to the transaction. The notification must include details on the buyer, the land size and the planned use for the land. The prefecture may also inspect the property as part of their investigation.

The proposal would not provide the prefecture with any power to restrict land transactions, but it will provide them with more information on the transactions that are occurring.

According to the Ministry of Land, Infrastructure, Transport and Tourism (MLIT), 620 hectares of forestry across a total of five prefectures including Hokkaido and Nagano has been purchased by foreign capital between 2006 and 2010.

In 2010, a Singaporean citizen purchased 10 hectares of forestry in Yonezawa City, Yamagata, to build a private vacation home. The prefecture has started an investigation into the purchase.

In Saitama, it is uncertain whether foreign funds have yet been used to purchase forestry. The Arakawa river begins in Saitama and is a source of Tokyo’s tap water and Chichibu City in western Saitama is a popular area for producing bottled mineral water. The prefecture is taking a cautious stance as they believe Chinese and other foreign corporations may be interested in buying up water sources.

Sources:
The Nikkei Shimbun, February 7, 2012.
The Sankei Shimbun, February 7, 2012.
The Yomiuri Shimbun, February 7, 2012.

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