Government to create database of foreign owners of real estate
The national government is planning to create a database to keep track of the nationalities of foreign buyers of real estate in Japan in response to calls for tougher restrictions on foreign investors. Currently, buyers are obligated to notify local jurisdictions of their nationality only when acquiring large land parcels, farmland, and land near sensitive facilities (self-defense force bases, for example). However, there has been no requirement to report nationalities to local governments when purchasing other types of real estate such as apartments.
On December 3, the Liberal Democratic Party launched a Foreigner Countermeasures Task Force with an agenda of providing recommendations regarding regulating the acquisition of land by foreign interests, with the head of the task force noting that “Land is inseparable from national sovereignty, and knowing who owns it and how it is being used is an extremely important matter.”
Vintage apartment building in Omotesando sells at 19 billion Yen gain
Oji Holdings is selling the 50-unit Oji Homes Aoyama apartment building in Omotesando to an unnamed domestic corporation, with a 19.9 billion Yen gain to be recorded upon sale. The transaction price has not been disclosed at the request of the buyer.Read more
Apartment and office investors targeted by potential change to inheritance tax code
The days of using real estate to reduce inheritance taxes may be numbered. The government is now looking into revising how real estate is valued for inheritance tax purposes to curb a common strategy of using rental investment apartments and strata offices to lower total estate taxes. Currently, the inheritance tax system uses ‘rosenka’ or roadside values which can sometimes result in real estate valuations that are drastically lower than market prices. The proposed revision bring valuations more closely in line with actual purchase prices, increasing the tax burden on heirs.Read more
3.5% of new condos in Tokyo were sold to buyers with overseas addresses
The results are in, and 3.5% of the brand-new condominiums sold across Tokyo’s 23 wards in the first half of 2025 were purchased by buyers with offshore addresses, according to data compiled by the Ministry of Land, Infrastructure, Transport and Tourism (MLIT). The ratio was 7.5% in Tokyo’s central six wards, 4.3% in Osaka City, and 2.5% in Kyoto City. The research did not look into the nationality of buyers, and may include both Japanese and foreigners in these figures. These figures indicate that foreign buyers are not to blame for rising home prices, despite sensationalist headlines. Read more
Japan's land prices increase for 7th quarter
Japan’s land prices have now increased for the seventh straight quarter, with the latest LOOK Report published by the Ministry of Land, Infrastructure, Transport, and Tourism (MLIT) showing an increase in all surveyed locations.Read more
Tokyo’s residential rental market remains stand-out performer as surrounding areas continue to decline
The average advertised rent for a condo-type apartment in Tokyo’s 23 wards reached a new record high in October of 4,866 Yen per square meter, up 14.1% year-on-year, according to Tokyo Kantei. Asking rents in newer builds less than five years old have come down from their peak seen in July, while rents in older buildings have shown more consistent growth since spring.
Rents in Yokohama City have dropped month-on-month for the past six months, and are currently 14.1% below their peak seen in May 2024. The average asking rent in October was 2,800 Yen per square meter, down 1.3% from the previous month and down 7.0% year-on-year. Rents in Saitama and Chiba cities are also down 12.7% and 16.1% respectively from their peaks seen in 2024.Read more
Osaka Expo site prepares for new entertainment complex
Preparations are now underway to determine the next use for the site of the former Expo 2025 in Osaka. Private developers are looking at redeveloping the 50-hectare grounds into an entertainment facility by the early 2030s. Together with the integrated resort and casino project underway next-door, the two projects are expected to revitalize the manmade island of Yumeshima.Read more