Recent Trends in Japan’s Real Estate Market
In recent years, Japan’s real estate market has attracted a large number of foreign investors due to the depreciation of the yen and a low-interest-rate environment, particularly buyers from China, Hong Kong, and Singapore. Consequently, property prices in popular areas such as Tokyo, Hokkaido, Osaka, and Kyoto have risen, especially in tourist destinations like Niseko in Hokkaido and upscale residential districts. This phenomenon has led local residents to feel that housing prices have been driven up, affecting their purchasing power, with some directing their frustration towards foreign buyers, claiming that Japan’s home-buying system is too lenient.
Rising Property Prices in Japan, Targeting Foreign Buyers
According to a report by Bloomberg, in Tokyo, the average price of new apartments has exceeded 100 million yen (approximately $700,000) for two consecutive years. In the most central areas, the price of a second-hand apartment measuring 70 square meters (about 21 tsubo) has doubled since before the outbreak of COVID-19, an unprecedented rate of increase in a market previously synonymous with price stability.
Some Japanese politicians and citizens are concerned that the large-scale purchase of properties by foreigners, particularly Chinese investors, may pose a threat to national security or economic stability. For example, Senator Yoshikawa proposed in May 2025 that foreign investment driving up housing prices could make it difficult for local residents to afford homes, calling for a reassessment of land purchase regulations, citing “reciprocity” as an example and pointing out that China does not allow foreigners to purchase land, suggesting Japan should consider similar restrictions.
This prosperity underscores how easy it is for outsiders to buy property here. In fact, the lack of restrictions or even prohibitive measures seems almost absurd. This is becoming a political issue.
Chinese Buyers Become a Focus of Attention
Japan’s real estate transactions do not require a record of the buyer’s nationality. However, a recent survey conducted by Mitsubishi UFJ Trust and Banking showed that 20% to 40% of new apartments in central Tokyo are purchased by foreigners.
Surprisingly, even in sensitive areas near military bases or nuclear power plants, Japan has not restricted foreign buyers’ purchases, and buyers do not even have to reside in Japan, nor do they need to pay additional taxes or stamp duties; purchasing a second home or vacation property does not incur extra taxes.
Increasingly, attention is being drawn to foreign buyers, especially wealthy individuals from China looking to store their funds in a safe place, attracted by Japan’s political stability and social security. In recent weeks, lawmakers and commentators have been raising concerns in parliament and the media about the lack of restrictions on property ownership.
Chinese Buyers Unable to Purchase Land in China, Find Real Estate Value in Japan
According to reports from The Epoch Times, due to the weak yen, the Japanese government relaxing visa requirements, and the increasingly strict controls in China, many wealthy and middle-class Chinese individuals are “melting” to Japan to purchase real estate. By 2026, the number of Chinese people residing in Japan is expected to exceed 1 million. Those choosing Japan as their destination are often affluent or well-educated individuals attracted by the easy lifestyle, rich culture, and immigration policies favorable to skilled professionals.
There is an abundance of listings for Japanese properties, including resorts and long-established inns, on major Chinese real estate websites.
Chinese businessman Sun Zhimin stated: “Chinese people cannot buy land in China, but in Japan, even Chinese people can buy land. Property prices in Japan are 10% to 20% cheaper than in China (where only land use rights are obtained). If you are looking for long-term investment, Japan is the best choice.”
Data shows that Chinese people make up the largest number of new immigrants in Japan, with 822,000 Chinese immigrants among the 3 million foreigners residing in Japan last year. This figure is higher than the 762,000 from a year ago and 649,000 from ten years ago.
In some areas, foreign investors are converting properties into vacation rentals (such as Airbnb) or commercial use, changing the living environment of local communities. For instance, residents of Furano in Hokkaido have noted a decrease in standalone houses and an increase in luxury apartments, with many locals leaving after selling their homes at high prices, altering the community structure. This “hotelization” phenomenon has sparked dissatisfaction among some residents, who feel that foreign buyers are disrupting the tranquility and tradition of their communities.
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