The recent inauguration of Prime Minister Sanae Takaichi on October 21, 2025, has stirred debate about Japan’s policy on foreign buyers of real estate. As the Co-founder and CEO of Blackship Realty Inc., I’ve been fielding many questions from international investors about whether Japan might ban foreigners from purchasing property.
The short answer is that an outright ban is highly unlikely, but tighter real estate regulations are on the horizon. In this article, I’ll break down the political context, current laws, and what changes foreign real estate investors should anticipate.
New Leadership Sparks Policy Questions
Takaichi is Japan’s first female prime minister, known for her conservative and security-focused views. Domestic media (such as Asahi Shimbun) have noted that her approach to security, diplomacy, and foreigner-related policies carries a “strongly hawkish tone”.
Indeed, addressing issues related to foreigners has quickly become a key agenda for her administration. In her inaugural policy speech to parliament, Takaichi pledged to “stand firm” against illegal acts committed by some foreigners.
Within days of taking office, she set in motion a ministerial meeting on foreign policy. Government officials announced that as early as the first week of November, ministers will convene to discuss tightening rules on land acquisition by foreigners, alongside stricter immigration and residency controls.
A new ministerial post was even created to coordinate foreigner-related policies, headed by Economic Security Minister Kimi Onoda, underscoring the new administration’s serious view of these issues. Onoda has pointed out growing public anxiety in Japan over foreign buyers, citing national security concerns (for example, land near military sites) and surging real estate prices, and emphasized the need to grasp who is buying what.
It’s important to note that the government insists it is not pursuing an exclusionary agenda. “The aim is to address public anxiety and a sense of injustice, not to exclude foreigners,” clarified Chief Cabinet Secretary Minoru Kihara.
Takaichi herself stated that her stance “draws a line against xenophobia” even as she vows a firm response to rule-breakers. In other words, the policy direction is about tighter oversight, not shutting out foreign nationals altogether.
Current Law: No Ban on Foreign Property Purchases (Yet)
First, let’s clarify the status quo. Japan historically has no blanket restrictions on foreign individuals or companies buying real estate. Unlike some countries, Japan does not impose special ownership rules or extra taxes on foreign buyers – a point that has made its property market very open.
Even after a law was enacted in 2022 to monitor land use near sensitive sites (such as military bases), transactions by foreign nationals are not prohibited under that law. The only requirement in those cases is to notify authorities in advance of the purchase, but there is no outright ban or veto power in place.
In fact, foreign investors have been freely purchasing everything from condominiums to commercial buildings across Japan. This openness has been a draw for global capital. Real estate deals by foreign nationals hit record highs recently – according to Nikkei reports, in the first half of 2025 overseas investors doubled their Japan property acquisitions year-on-year to over ¥1 trillion, the highest level on record.
Major deals (like the anticipated sale of a prominent corporate headquarters to foreign funds) continue to make headlines. These trends reflect Japan’s reputation as a stable, high-yield market, especially with a weaker yen making assets relatively affordable.
So to answer the core question: Is there currently a ban on foreigners buying property in Japan? No, there is no ban. Foreigners (non-residents and non-citizens) can buy both land and buildings in Japan freely, and that remains the case as of late 2025.
However, this permissive environment is now under review, which brings us to what might change.
Government Moves to Tighten Real Estate Regulations
In October 2025, Takaichi’s administration launched a fact-finding study of how other countries handle foreign real estate ownership. The government will examine legal regimes in countries like Canada, Germany, South Korea, and Taiwan to see to what extent foreigners are restricted from purchasing or leasing different types of land (residential, agricultural, commercial, etc.). The goal is to use these findings to guide possible revisions to Japan’s domestic laws by the end of the fiscal year.
For instance, Canada has imposed a temporary ban on foreign homebuyers in an attempt to cool housing prices, and South Korea has regulations on land purchases by non-residents. By studying such cases, Japanese policymakers are weighing options short of an absolute ban, such as: tighter screening of purchases in strategic areas, caps or notification requirements on large acquisitions, or even special restrictions on certain categories of land (e.g. farmland or sites near water resources).
In fact, authorities have already started implementing stricter monitoring measures. From October 2025, the Land Ministry now requires that any sizable land purchase include a report of the buyer’s nationality to local authorities. This change aims to improve transparency and allow the government to track foreign capital flows into real estate.
Another law likely to be revisited is the 2022 security-focused law regarding land near important facilities. That law is set for a built-in review in 2027, and there are signs the government may tighten it further based on the current investigation’s findings. We could see stronger oversight or even pre-approval requirements when foreign entities want to buy property adjacent to defense installations, remote border islands, or other sensitive areas.
Stricter enforcement of existing rules is also on the agenda – for example, ensuring foreign owners properly pay taxes and that any misuse of land can be addressed. All of these steps fall under what Takaichi has described as fortifying Japan’s “control tower” function on foreigner policy.
It’s worth noting that the push for regulation isn’t coming only from the new Prime Minister. Public opinion and bipartisan politics have converged on this issue in recent times. During Japan’s House of Councillors election in July 2025, real estate purchases by foreigners became a campaign issue, with candidates from both the ruling LDP and opposition parties calling for stricter rules. Local governments and LDP chapters in various regions (especially those facing large foreign land acquisitions) have also voiced concern.
In short, there is domestic momentum to “do something” about foreign property investment, whether to protect national security, prevent speculative land hoarding, or simply to address perceptions that wealthy overseas buyers might be pricing out locals in some areas.
Japan’s Balancing Act: Security vs. Openness
From my perspective at Blackship Realty (operating company of Tokyo Portfolio), this brewing policy shift is a balancing act. Japan is trying to reassure its public that it’s safeguarding national interests without scaring off the international investment that its economy increasingly relies on. It’s a delicate equilibrium between political optics and economic strategy.
On one hand, national security and public confidence are driving the rhetoric. There have been high-profile reports of foreign (particularly Chinese) buyers snapping up land near Japanese military bases and rural water sources, sparking worry in security circles.
Likewise, stories of soaring property values in Tokyo’s core wards or ski resort areas due to an influx of foreign money create public pressure to ensure Japanese citizens aren’t disadvantaged. Takaichi’s administration wants to project strength on these issues. The creation of a dedicated foreign policy panel and minister is a political signal that this government will be more vigilant than its predecessors.
On the other hand, foreign investment is actively helping to revitalize cities and inject capital into properties from offices to hotels in Japan. In 2025, Tokyo overtook cities like New York and London in property investment inflows for the first time in many years. Cash-rich foreign funds have become key players in deals for everything from office towers to warehouse portfolios.
This surge of foreign buying has provided an uplift to Japan’s real estate sector, boosting property values and development. For a country facing population decline and labor shortages, foreign capital and talent are important for growth. As Takaichi herself acknowledged, “there are fields that require foreign human resources in our labor shortage, and inbound tourism is also important”. Japan cannot afford to slam the door on the very investors and skilled individuals it needs for its economy to thrive.
The government recognizes this. Hence, officials have been careful to stress that any new rules will target “bad actors” or specific risks without broad-brush exclusion. The Chief Cabinet Secretary’s comment that the goal is addressing anxiety, not excluding foreigners is a clear indication that Japan does not want to be seen as closing its market. Practically speaking, an outright ban on foreign property purchases would be extreme and counter-productive. Instead, what we are likely to see is a more nuanced tightening:
- Enhanced Screening & Reporting: Expect more thorough vetting of certain land transactions. For example, purchases near military bases, coastlines, or critical infrastructure might require prior government approval or notification (building on the 2022 law). Authorities will also collect more data on foreign buyers – as evidenced by the new requirement to report nationality in large land deals.
- Legal Framework Updates: The government’s study of other countries’ laws could lead to adopting measures like Canada’s temporary ban on foreign homebuyers (though likely in a limited form for Japan), or Australia’s approach of extra stamp duties for foreign buyers, or stricter limits on farmland purchases similar to New Zealand’s model. Any legislative changes will probably be debated in 2026, aiming for implementation by the time the security land law review comes in 2027.
- Targeted Restrictions, Not a Ban: If new restrictions come, they might focus on specific categories of property (for instance, restricting foreign ownership of land adjacent to Self-Defense Force bases or remote border islands of strategic importance). There could also be differentiation between individual foreign buyers and foreign state-owned enterprises or funds.
What Foreign Investors Should Expect
For foreign investors interested in Japanese property, the landscape is evolving, but not hostile. Here’s what to keep in mind going forward:
- No Need to Panic: Japan is not banning foreign buyers across the board. The political intent is to tighten oversight, not to shut out legitimate investors. You will still be able to purchase condos, homes, and commercial real estate as a foreigner. In fact, as of today there are no citizenship or residency requirements for owning property here, and that remains true. Government leaders have explicitly said they don’t intend to exclude foreigners who play by the rules.
- More Scrutiny and Paperwork: You might encounter additional disclosure requirements or steps in certain transactions. For example, if you’re buying a large plot of land, be prepared to disclose your identity and nationality to authorities. If your target property is near a sensitive site (like a military facility or maybe a reservoir), be aware there could be a review or approval process involved in the future. It will be wise to stay updated on any new guidelines issued by Japan’s ministries.
- Continued Market Openness: Japan’s need for global capital means the overall real estate market will remain welcoming. The economic interdependence is simply too significant to ignore. Global investors now account for a substantial portion of property transactions in Japan, and their capital has been driving growthshiba-tp.co.jp. The government will seek to calibrate regulations so as not to spook these investors. In fact, effective regulation can be positive: it can mitigate local opposition and ensure a more sustainable market, which ultimately protects your investment in the long run.
- Political Optics vs. Reality: Keep an eye on political rhetoric, but focus on the actual policies enacted. Takaichi’s tough talk is in part meant to reassure domestic audiences that foreign involvement is monitored. The reality on the ground is likely to be a set of measured controls that increase transparency rather than an isolationist turn. Japan’s bureaucracy tends to move carefully. Any changes will likely be implemented gradually, giving investors time to adapt.
From a strategic standpoint, foreign investors should continue to approach Japanese real estate with confidence, while staying informed. Engage with reputable local advisors (like our team at Tokyo Portfolio) who can update you on regulatory changes.
Japan’s fundamental attractions – political stability, rule of law, and solid property yields – remain intact. If anything, moves to add clarity (e.g., by identifying foreign ownership in registries) could reduce uncertainties and rumors, making the market more transparent.
Regulation, Not Rejection
In summary, the Takaichi administration is poised to tighten regulations on foreign real estate purchases, but this does not equate to a full ban on foreign buyers. The political impetus for reform is real: national security considerations and public concerns are driving Japan to review how it governs land ownership by foreigners.
We can anticipate new rules that make foreign investment more transparent and selectively controlled. However, Japan also understands the value of being an open, investment-friendly market in a global economy. Even as rules are fine-tuned, the nation remains deeply interconnected with global capital and committed to economic growth.
For foreign investors, Japan’s message is essentially: “We welcome you, but please play by our rules.” In my view, such an approach is a sensible middle ground. It strengthens oversight to address legitimate concerns, while stopping well short of shutting the door on foreign money.
As CEO of a firm helping international clients navigate Japanese property, I find this balance reassuring. Japan is not turning inward or forfeiting the gains of foreign investment; it is simply recalibrating to ensure that openness doesn’t come at the cost of security or public trust.
