The government is considering introducing legislation that would require advance notice to be submitted when a foreign national is purchasing land in or nearby areas considered to be of national importance. The draft bill is expected to be submitted to parliament sometime this year.

Under the proposal, the government would designate areas that would require advance notice prior to the sale to foreigners. These may include outlying islands near the national border, as well as areas surrounding military bases. This would not prohibit the sale of land to foreigners, but would allow the government to gain an understanding of who is buying what and where for the purpose of national security and environmental conservation. Japan falls behind international standards in this regard, having almost zero restrictions against foreign ownership of land.

The issue was first brought up around 13 years ago. In 2013, the Liberal Democratic Party established a committee with attempts made in 2014, 2016, and 2018 to have it passed by parliament. However, discussions always stalled over its conflict with private rights.

Current laws do not require the buyer to record the change of ownership on the property title, which can make it difficult for authorities to trace ownership. The government does not currently have the right to check the private details of landowners, including their nationality. 

In recent years, there have been several notable purchases of land by foreign interests near a navy base on Tsushima Island, as well as large tracts of forest and water sources in Hokkaido. The Ministry of Agriculture, Forestry and Fisheries estimates that foreign capital was behind the purchase of 163 hectares of forestry across Japan in 2019, of which 154 hectares was in Hokkaido.

Source: The Sankei Shimbun, October 26, 2020.

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