Growing Debate: Challenges Surrounding “Foreigners and Real Estate” 

In recent years, debate and public concern regarding “real estate acquisition by foreign nationals” have intensified in Japan. The primary point of contention is that the current system does not allow for a full understanding of the actual status of real estate acquisition and ownership by foreigners. Real estate registries currently do not require the disclosure of an owner’s nationality. Furthermore, information regarding the nationality of owners for certain properties is fragmented across various ministries and local governments, making it difficult to grasp the comprehensive picture. The government recognizes that this lack of transparency fuels public anxiety. Consequently, establishing a robust foundation for monitoring actual conditions is now considered an essential priority. 

On November 4, 2025, the “Ministerial Council on the Acceptance of Foreigners and the Realization of an Orderly Coexistence Society” was held. During this meeting, a “Prime Minister’s Instruction” (hereafter referred to as the “Instruction”) directed to relevant cabinet members was released. Among these, the instructions regarding real estate focus on the following four key pillars: 

Four Key Initiatives Outlined in the “Instruction” 

1. Establishinga Mechanism to Identify Nationality in Transactions The first instruction is to develop a system to identify nationality during real estate transactions. Specifically, nationality will be tracked at the time of “registration of real estate transfer” and “notification of forest land acquisition.” Previously, mechanisms existed under certain laws, but they were fragmented—focusing only on land critical to national security, transactions exceeding specific sizes, or acquisitions for investment purposes. This new directive aims to create a more comprehensive system for collecting nationality information across the entire real estate sector. 

2. Monitoring Real Estate Acquisition by Non-Residents Currently, non-residentsacquiringJapanese real estate for investment purposes must file reports under the Foreign Exchange and Foreign Trade Act. Starting April 2026, this reporting requirement is expected to expand to include all real estate acquisitions, including those for residential purposes. 

3. Expediting Market Analysis of Condominium Transactions Concerns are rising that soaring condominium prices in urban areas are making it difficult for citizens to secure housing. Therefore, the Instruction calls forthe immediateassessment and public disclosure of actual transaction data for condominiums, including acquisitions from overseas. 

4. Development of a “Real Estate Base Registry” Efforts are underway to build a unified platform to manage real estate-related information currently scattered across national and local government levels. This “Real Estate Base Registry” is scheduled to begin operations in 2027 or later.

Future Outlook: Proposed Amendments and Legislative Direction 

The Instruction requests relevant ministers to present a formal framework and policy direction by January 2026. Press conferences held by ministers since November 2025 indicate that these deliberations are progressing steadily. At present, Japan has no laws that directly prohibit or restrict the acquisition of land by foreign nationals; the system remains centered on notification requirements based on specific laws and local ordinances. However, the coalition agreement between the ruling Liberal Democratic Party (LDP) and Nippon Ishin no Kai explicitly states: “A bill to strengthen regulations on land acquisition by foreigners and foreign capital will be formulated for the 2026 ordinary session of the Diet.” As the government gains a clearer understanding of the actual status of ownership, the debate regarding the specific content and scope of future regulations is expected to intensify. 

This column will continue to provide detailed updates as the specific details of each new system are finalized. 

(Reference)  

Prime Minister’s Office: “Realization of an Orderly Coexistence Society with Foreigners (Prime Minister’s Instruction) (November 4, 2025)” (Retrieved January 15, 2026, from https://www.kantei.go.jp/jp/singi/gaikokujinzai/kakuryokaigi/dai1/sorishiji.pdf)