The number of foreign visitors to Japan in 2024 will be approximately 36.87 million, one third of the population of Tokyo, and while Tokyo is of course in first place in terms of population by prefecture, Kanagawa Prefecture is in second place with 8.88 million people. This means that three times as many foreigners visited Japan last year as the population of Kanagawa Prefecture.
This was a 16% increase on the previous record set in Corona in 2019, and a record 3.48 million people in December by month alone.
The depreciation of the yen, the difference in price indices between overseas and Japan, and the spread of LCCs are also reasons for the increase in the number of visitors to Japan.

The rapid increase in the number of foreign visitors to Japan has caused various problems. One of these is the problem of foreigners purchasing property.

Japan is one of the few countries in the world where foreigners can buy property in Japan. Japan is relatively tolerant towards foreigners with regard to real estate, and foreigners who do not live in Japan can purchase land and buildings without restrictions.

The conditions under which a foreigner may purchase real estate in Japan are

1. residence status is not required
Foreigners do not need a visa or residence status to purchase real estate. It is possible to purchase real estate while visiting Japan as a tourist.

(2) Land ownership is possible
In Japan, foreigners can own a detached house with land or the land itself.

(3) Corporate entities can also purchase land.
Foreign companies and foreign nationals often set up Japanese corporations and own real estate in their corporate name.

and can purchase without restriction almost as much as Japanese nationals.
This lack of legal arrangement has caused friction and problems with Japanese nationals.

Homeland security concerns.
(ⅰ)● Content of concerns:
There are concerns about cases of foreigners acquiring land around strategic locations such as Self-Defence Force bases, nuclear power plants, water sources and airports.
In particular, the acquisition of forests and water sources in Hokkaido by Chinese nationals is still an issue in the media.
● Background:
When foreign governments or their officials acquire land, the purpose of ownership is often unclear.
There is also concern that in the event of an emergency, the land could be used as a base for information gathering and manipulation activities.
● Policy trends:
In 2021, the Law on Investigation of Important Land etc. was passed, and land acquisition around specified bases is now subject to monitoring.

(ii) Increase in the number of vacant and abandoned properties
● Concerns:
There are cases where properties are purchased for investment purposes but are actually left unmanaged and abandoned.
Weeds, illegal dumping and building deterioration often cause problems for neighbouring residents.
● Japanese concerns:
‘I don’t know who lives there.’
‘Can’t get in touch with the owner’
Isolation from the local community

(iii) Rising land prices and exclusion of residents (gentrification)
● Concerns:
When foreign capital acquires large amounts of real estate in urban areas (e.g. Tokyo, Osaka, Kyoto) for tourism and private accommodation, land prices soar.
This creates the problem of ‘gentrification’, whereby local young people and residents are unable to live in the area.
Specific examples:
In some areas of Kyoto City, there are data showing that the demand for real estate for foreign tourists has increased, and that this has led to a growing exodus of residents.

(iv) Differences in legal systems and cultural friction
Concerns:
Trouble may occur due to differences in values and management styles regarding land and real estate.
Examples: failure to observe rules on waste disposal, noise at night, disregard for gardens and boundary lines, etc.
● Japanese view:
‘Wouldn’t local order and good manners be enforced?’
Concern that friction with the local community is likely to occur.

(Ⅴ) Lack of transparency/issues of unknown ownership
● Concerns:
When foreign nationals (especially those living abroad) purchase a property, the whereabouts and identity of the actual owner is often unknown.
If the property is acquired in the name of a company or via a paper company, it is not possible to ascertain who the actual owner is.

● Risks:
Concerns about misuse for illegal activities (money laundering and tax evasion).
In some cases, local authorities are unable to contact the owner due to measures against vacant properties.

Against this background, the unrestricted purchase of real estate by foreigners is increasingly seen as dangerous from the perspective of the national interest.
Japan has always been lenient towards foreigners and strict towards people from their own countries. From a security point of view, it is necessary to urgently improve the legal system.