The Japanese government is planning to broaden its investigation into condominium transactions by foreigners to include those residing in Japan, starting in fiscal 2027 or later, according to sources familiar with the matter [1]. This follows the Ministry of Land, Infrastructure, Transport and Tourism's first survey last year, which focused on condominium transactions in major metropolitan areas involving buyers with overseas addresses, amid concerns that speculative purchases by foreign buyers were contributing to rising condominium prices [1].
The ruling Liberal Democratic Party (LDP) has shown support for stricter regulations on property purchases by foreign individuals and companies, and included in its campaign pledge for this year's lower house election a commitment to consider restricting foreign condo purchases [1]. The government has stated its goal of achieving 'well-ordered and harmonious coexistence' with foreign nationals, with the expanded probe seen as a step toward this objective [1].
The upcoming survey is expected to collect and analyze data such as purchase trends by nationality and geographic areas to determine whether speculative buying is occurring [1]. Starting in October, all real estate buyers in Japan will be required to disclose their nationality during property registration [1]. However, the specific target areas of the survey and whether Japanese nationals will be included have not yet been decided [1].
Last year's survey found that buyers with overseas addresses made up 3 percent of new condominium purchasers in Tokyo during the January-June period of 2025. The ministry reported no trend of short-term transactions involving high-end properties and no significant impact on rising prices from these transactions [1]. A government source emphasized that some of these buyers are foreigners living and working in Japan, and that the transactions themselves are not problematic, but speculative transactions are undesirable regardless of the buyer's nationality [1]. The World Trade Organization's principles, which prohibit discrimination against foreigners, make it difficult for Japan to introduce restrictions targeting foreigners alone [1].
CONCLUSION
Japan is set to expand its probe into condominium purchases by foreign residents, reflecting ongoing concerns about speculative buying and its potential impact on the real estate market. While the government is moving toward stricter oversight, last year's data showed limited foreign influence on prices, and any future restrictions will need to comply with international non-discrimination principles.