Surge in Foreign Property Acquisitions Near Sensitive Sites in Japan

In fiscal 2024, foreign individuals and entities purchased a total of 3,498 properties around critical security facilities and remote islands in Japan, according to a government study released on December 16, 2023. Notably, nearly half of these acquisitions were made by buyers from China, highlighting a significant trend in foreign investment in sensitive areas. The properties included 1,744 plots of land and 1,754 buildings across 37 of Japan's 47 prefectures, with Tokyo recording the highest number of acquisitions at 1,558.

The Straits TimesSouth China Morning Post

In response to the surge in foreign property ownership, the Japanese government, under Prime Minister Sanae Takaichi, announced plans to implement stricter regulations starting in April 2026. These regulations will require corporations to disclose the nationalities of their heads when acquiring forested lands or properties deemed of national security importance. Additionally, individuals will be asked to provide their nationalities when purchasing forested areas. This initiative aims to enhance transparency and control over foreign real estate ownership, particularly in areas surrounding sensitive facilities.

South China Morning Post

The survey indicated that mainland China accounted for the majority of property acquisitions, with 1,674 properties purchased. Other notable buyers included Taiwan with 414 acquisitions, South Korea with 378, and the United States with 211. The properties were primarily located near 583 designated “monitored areas” or “special monitored areas,” which are governed by a law that took effect in 2022 to prevent potential threats to national security.

South China Morning Post

Critics have raised concerns about the implications of foreign ownership of properties near sensitive sites. The acquisitions, particularly those by Chinese buyers, have sparked debates regarding national security and the potential for foreign influence in critical areas. Kimi Onoda, the minister in charge of economic security, emphasized the government's commitment to investigating the situation and taking measures to prevent any actions that could obstruct the functions of these properties.

The Straits Times

While the survey indicates a significant increase in foreign property acquisitions, it is important to note that a previous investigation in 2024 reported only 371 properties acquired. However, this comparison is complicated by the fact that the number of designated locations for monitoring increased nearly seven-fold in the latest survey. There have been no reported cases of warnings or orders to halt the use of these properties.

The Straits Times

• “We will steadily investigate the situation and take all-out measures to thwart acts that obstruct the functions of the properties,” — Kimi Onoda, Minister in Charge of Economic Security.

The Straits Times

The recent surge in foreign property acquisitions in Japan underscores the growing interest in real estate near sensitive sites, prompting the government to take proactive steps to regulate and monitor these transactions.

South China Morning Post