Japan Investigates Large-Scale Land Purchases by Foreigners

The Japanese government will launch an investigation to comprehensively understand the actual situation of large-scale land purchases by foreigners, with a particular focus on high-volume transactions in both urban and rural areas.

The Kyodo News Agency reported that the Ministry of Land, Infrastructure, Transport and Tourism of Japan disclosed on Monday (February 2nd) that it will conduct an investigation into the actual situation of large-scale land purchases by foreigners. The investigation targets include cases where 2,000 square meters or more of land is purchased in "urbanized areas" with dense shops and residences, and cases where one square kilometer or more of land is purchased in "urban planning areas outside" such as rural areas.

The Ministry of Land, Infrastructure, Transport and Tourism of Japan will review the data submitted over the past few years, identify the proportion of potential foreign buyers based on names and addresses, and analyze the land use to gain an overall understanding of the situation regarding foreigners' ownership of real estate. The relevant investigation is expected to commence by the end of March.

This measure is part of the policies for foreigners implemented by the Katsuko Takahashi government. The Ministry of Land, Infrastructure, Transport and Tourism announced a survey on the purchase situation of new apartments in November last year. The results showed that among the buyers with overseas addresses, those in Tokyo accounted for only 3%, and it was found that they did not have a significant impact on the increase in housing prices.

The Ministry of Land, Infrastructure and Transport explains that, according to the "Land Utilization Plan Act", when purchasing large tracts of land, the buyer must report information such as the land use and transaction amount to the local government within two weeks after the transaction is completed. The applicable objects mainly include hotel construction land, golf courses, and water sources. In 2024, the number of such reports across the country was approximately 19,000. Since July 2025, individuals have been required to report their nationality when purchasing land.

Based on the aforementioned law, the Ministry of Land, Infrastructure and Transport announced revised provincial regulations on Monday, stipulating that legal representatives must also report their nationality to local governments. The new regulations will come into effect on April 1st. Considering privacy protection concerns, the reported information will generally not be disclosed to third parties.