Land Purchases with Foreign Capital: Grasp Actual Situation, Discuss Whether to Introduce Regulations

Editorial

16:48 JST, August 31, 2025

Land purchases by foreign companies and individuals have increased nationwide, causing widespread repercussions. During the campaign for the recent House of Councillors election, some opposition parties claimed that such purchases should be regulated.

The actual situation must be grasped. Then, the government and ruling and opposition parties should deepen discussions on the need for measures to respond to the situation, among other matters.

In Kutchan, Hokkaido, multiple Chinese-related entities have purchased land where they later built hotels and other structures one after another, driving up land and commodity prices.

In Miyakonojo, Miyazaki Prefecture, a company believed to be linked to China acquired about 700 hectares of forest in a water source area. Local residents have become concerned about issues such as whether they can continue to secure water for agriculture as they did before.

A surge in housing prices in urban areas is believed to be attributable to speculative purchases by foreign nationals. There have also been cases in which foreigners were found to have provided illegal minpaku private lodging services by renting out condominium units that they had purchased.

In the upper house election, the Democratic Party for the People vowed to introduce a so-called vacancy tax to levy taxes on foreign nationals who acquire housing for purposes other than using it as a residence. Sanseito pledged to ban land purchases by foreign nationals in principle.

Japan currently imposes no restrictions on land acquisition by foreign individuals and entities.

When Japan concluded a pact with the World Trade Organization in 1995, it agreed to nondiscrimination rules between Japanese and foreign nationals. Japan could have prohibited real estate acquisition by foreign parties, but it prioritized attracting foreign investment.

However, concern has grown that a lack of protection could allow foreign investors to even purchase land that is critical to national security. In 2021, the government enacted the Law on the Review and Regulation of the Use of Real Estate Surrounding Important Facilities and on Remote Territorial Islands.

This law grants the government the authority to investigate the usage status of land and buildings such as those within a range of about 1 kilometer from Self-Defense Forces bases and the premises of nuclear power plants. Under the law, advanced notification is required for transactions involving land in areas of particularly high importance.

However, the current law does not prevent land transactions in and of themselves by foreign parties.

Many people have voiced concern over possible situations such as water supply being restricted by unscrupulous operators after water source areas are purchased with foreign capital. Some people have also pointed to the possibility that plots of land located slightly away from SDF bases could be purchased with Chinese capital to hamper SDF activities.

If land purchases by foreign parties pose a clear threat to Japan’s security, why not consider amending the current law to allow such transactions to be halted? In that case, Japan would need to coordinate with other signatory states to the WTO rules.

It is also concerning that the government does not have a comprehensive grasp of land purchases made with foreign capital. It should first conduct a thorough investigation.

(From The Yomiuri Shimbun, Aug. 31, 2025)