The Japanese government recently released statistics on large-scale land transactions after disclosing buyer nationality data for the first time. In the latter half of 2025, there were 68 reported cases of transactions involving foreign individuals and foreign entities, with China leading at 28 cases, accounting for 41.2%. However, these transactions only made up 0.7% of all reported cases during the same period. Despite the relatively small numbers, why is the Japanese government starting to inquire about “who is buying land”?
The answer may lie beyond just the land transactions themselves. Recently, the Japanese government has been requiring the nationality of buyers to be recorded in real estate registration systems, while also beginning to review rules regarding foreign individuals acquiring land from a security perspective.
According to data released by the Japanese Ministry of Land, Infrastructure, Transport and Tourism on September 15, 2025, there were a total of 9,573 reported large-scale land transactions from July to December 2025 under the National Land Use Planning Law, with 68 involving foreign individuals and foreign entities, accounting for 0.7%. These transactions involved a total land area of 124 hectares, making up 0.5% of the total reported area. The reporting thresholds varied by region, ranging from 2,000 to 10,000 square meters.
When classified by nationality and the country/region of the legal entity, China ranked first with 28 cases and 42 hectares, followed by Hong Kong and the United States with 7 cases each. Out of the 28 cases in China, 18 were for production facilities, while the rest were related to agriculture, forestry, fisheries, residential, commercial facilities, leisure facilities, parking lots, and other purposes.
One notable feature of this batch of statistics is that since July 2025, Japan has started including the nationality of the rights acquirer in the relevant application data, allowing the government to have a unified understanding of the situation where foreign individuals and entities acquire large land parcels.
In January 2026, the Cabinet Secretariat of Japan released an advisory document from the “Meeting of Knowledgeable Individuals for an Orderly Coexistence of Foreigners Society,” which extended the land issue to security aspects. The document pointed out that when reviewing the acquisition, ownership, use, and management of land from a security standpoint, factors such as future risks, economic freedom of activities, and foreign systems should be considered.
The discussion within the knowledgeable individuals’ meeting also raised another layer of issues. One member pointed out that some countries’ laws require their citizens or companies to provide cooperation on national security and intelligence activities. Under such systems, Japanese land and real estate held by foreign individuals could face risks of being influenced or even controlled by foreign entities. The member did not specifically mention any country in the statement.
Media reports in Japan have highlighted land transactions in Kasajima, Yamaguchi Prefecture, reflecting local residents’ concerns about foreign individuals acquiring land. Kasajima is located near Yanai City in Yamaguchi Prefecture with a population of only 7 people. In 2025, Asahi Television reported that approximately 3,700 square meters of land on the island was purchased by a Chinese national residing in Shanghai, stating that the land was bought to build a villa.
Representing the “Protect Kasajima Society,” Hideya Yagi expressed that from the island, one can see the direction of the Iwakuni base of the US forces, and further away lies the Maritime Self-Defense Force base in Kure, noting the area as an important military strategic point.
Kasajima is around 20 kilometers from the Iwakuni base and about 50 kilometers from the Maritime Self-Defense Force base in Kure. Due to this proximity, local residents have expressed unease about foreign individuals acquiring land with the “Protect Kasajima Society” even launching fundraising efforts to repurchase the related land. Iwakuni City Councilor Takashi Ishimoto has also called for strengthening regulations on foreign land acquisitions.
However, these statements reflect the concerns of local residents and political figures and do not imply that the Japanese government has determined that the land transaction poses a security threat to military facilities.
The entry of foreign capital into the Japanese real estate market is not limited to land transactions. In recent years, there have been cases of foreign capital acquiring hotels and inns in Ishiwa Onsen in Fuefuki City, Yamanashi Prefecture.
Asahi Television reported in November 2025 that out of around 40 major hotels and inns in the area, 10 were acquired by foreign investors, with one Chinese investor buying two hotels two years ago, remarking that Japanese land was “cheap.”
These types of transactions involving hotels and inns do not pose the same security concerns as those around military facilities but reflect another aspect of foreign capital entering the Japanese real estate market: besides land itself, properties related to local tourism assets such as hotels and inns are also becoming investment targets.
In December 2025, Minister of Economic Security Naomi Onoda stated that to dispel concerns among the public regarding foreigners acquiring real estate, they would collaborate with relevant departments to research and disclose information they have in an appropriate manner.
The Japanese government is currently gradually institutionalizing the recording of the nationality of foreign individuals acquiring real estate. The measures announced in December 2025 include incorporating the nationality of the applicant in application data for real estate transfers; when a legal entity acquires land, they will also track the nationality of the representative and if more than half of the directors or voting rights are held by individuals of the same nationality. These measures are set to be implemented in the 2026 fiscal year.
Simultaneously, the Cabinet Secretariat established the “Foreign Land Acquisition Rules Study Group” in March of this year, holding four meetings by July to discuss regulations on foreign land acquisitions, including security aspects, land policies, and relevant legal frameworks.