Japan to require real estate buyers to reveal nationality

[TOKYO/ YOKOHAMA] Japan plans to require individuals to reveal their nationality when acquiring real estate, Justice Minister Hiroshi Hiraguchi announced on Tuesday (Dec 16).

This comes after rising prices led to concerns that foreign speculation was putting homes out of reach of citizens. 

The new regulations would require buyers – including Japanese citizens – to provide a passport or other proof of nationality when registering their ownership. The ministry aims to have the new system begin operation in fiscal year 2026, after a period for public comment. 

The move comes after Prime Minister Sanae Takaichi last month said that the lack of data about foreign ownership was causing concern. She instructed ministers to consider mechanisms for monitoring such acquisitions.

Broader concerns about the growing number of immigrants in Japan were a factor in the long-ruling Liberal Democratic Party’s loss of its Upper House majority in a July election, and the resignation of the then-prime minister Shigeru Ishiba, paving the way for Takaichi to take the top job.  

The buyer’s nationality information will be kept as internal administrative data and managed using a database overseen by the digital agency. It will not be disclosed externally, said a justice ministry official.

In the first six months of this year, 7.5 per cent of new apartments in the six central wards of Tokyo were sold to people living overseas, up 4.3 percentage points from the previous year, based on a survey published by the land ministry.

Prices for new apartments in the Tokyo region rose by 7.1 per cent in October against the previous year, said the Real Estate Economic Institute, marking the sixth straight month of rises.  

In a separate policy change, Japan’s Ministry of Finance will tighten reporting requirements related to real estate acquisitions by foreign nationals living overseas.

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Foreign nationals based overseas are currently required to file a report when acquiring real estate for investment purposes, but not when the acquisition is for residential use. Under the revised rules, all transactions – including those for residential purposes – will require a report within 20 days.

Finance Minister Satsuki Katayama announced the plan on Tuesday, and the ministry aims to implement the changes on Apr 1, 2026, after a period for public comment. BLOOMBERG