【Epoch Times, August 10, 2025】Foreign investment in Japanese real estate has recently become a topic of concern for Japanese media. Earlier this year, a Chinese landlord significantly raised apartment rents, sparking public outrage. A Japanese lawyer pointed out that differences in legal understanding may be one of the root causes of the issue, as tenants’ rights in Japan are strongly protected by law, while China lacks such legal provisions.
In January of this year, a seven-story apartment building in Itabashi Ward, Tokyo, changed ownership to an individual registered in China. Subsequently, tenants were notified of a rent increase of more than double starting from August.
The tenants deemed the increase unreasonable and refused to accept the rent hike. However, in mid-May, the apartment elevator was announced to be temporarily out of service with repairs requiring over six months. Furthermore, there were suspicions of some rooms being used for illegal operations as guesthouses, causing unbearable noise. As a result, 40% of the tenants have either moved out or decided to do so.
After the incident was reported by Japanese media, public opinion erupted. Japanese Prime Minister Shigeru Ishiba responded to the issue during a parliamentary session, stating, “While the consumption of foreign visitors to Japan is important, we cannot sacrifice the safety and security of our citizens.” He mentioned that measures would be taken to prevent landlords or tenants from suffering undue losses in lease relationships.
As the situation continued to escalate, the landlord informed tenants that he decided not to raise the rent, and the elevator had been repaired and was functioning properly.
However, a Taiwanese YouTuber living in Japan, who goes by the name “Ben’s Japan Talk” in his segment, stated in his latest video that the “Itabashi Incident” shocked Japan, particularly the residents in the capital region who have been struggling with the skyrocketing property prices in recent years. He mentioned that Japanese society has collectively turned against foreign investors, leading to a significant defeat for the ruling Liberal Democratic Party and Komeito in the July Upper House election.
The YouTuber added that after incidents where Chinese individuals violate regulations in Japan and prompt social backlash, it is actually the ordinary Chinese people living in Japan and the Chinese investors wanting to run businesses honestly in rentals or guesthouses who are most enraged.
Ignoring the case of rent hikes in this specific incident, there seems to be a growing trend of Chinese investment entering the Japanese real estate rental industry. Keisuke Fukuhara, a lawyer who spent 10 years in China and can handle real estate related cases in Chinese, told “Lawyer JP News” in Japan that there are three main factors driving Chinese individuals to operate real estate rentals in Japan: “The worsening economic situation in China leading to an increased demand for asset preservation,” “The attractiveness of investment in Japanese real estate rentals,” and “The growing demand for relocating to Japan.”
He explained, “With the current poor economic situation in China and the widening wealth gap, the government is actively promoting policies for ‘wealth redistribution.’ Consequently, wealthy individuals are actively moving funds abroad to invest in real estate or stocks.”
“In addition, the proximity between China and Japan, along with the depreciation of the Japanese yen making Japanese properties relatively cheaper, also boosts the willingness of investors to engage in the Japanese real estate rental industry.”
He continued, “Not only for investment purposes, but the number of Chinese individuals wanting to permanently move to Japan is increasing. Some people purchase properties in Japan for this reason.”
The landlord in the aforementioned case wanting to drastically raise rents highlights the differences in laws between the two countries.
Fukuhara mentioned, “In Japan, under the ‘Land and House Lease Law,’ the rights of tenants are strongly protected, whereas China does not have this kind of law… In China, cases of landlords suddenly evicting tenants according to their own wishes are not uncommon, and some Chinese landlords who lack a full understanding of Japanese law believe they can prioritize their convenience in their actions.”
He stated, “The difference in legal understanding may be the background for demanding tenants to vacate in such a severe manner in the mentioned incident.”
According to Japanese law, landlords unilaterally raising rents must make careful judgments according to the provisions of the “Land and House Lease Law.”
Fukuhara explained, “If both the landlord and tenant agree to raise the rent, the contract is basically established. However, if the tenant refuses the price increase, the landlord must ultimately seek mediation and litigation in court… If the rent increase is not in accordance with the requirements of the ‘Land and House Lease Law’ approved by the court, the tenant must pay the difference in the increased amount to the landlord.”
Additionally, if renting in Japan and tenants receive notice of a significant rent increase, Fukuhara advised, “It’s crucial to continue paying rent as usual.”
He emphasized, “Under no circumstances should you stop paying rent entirely just because you cannot accept the increase. By continuing to pay rent, it signifies that the contract is ongoing. If the previous agreement is not adhered to, it may result in a breach of contract and potential termination.”
Fukuhara recommended that in similar situations, tenants should first confirm the reasons for the rent increase with the landlord or management company, engage in negotiations, maintain written records, and if the landlord is suspected of illegal activities, they should also consult with administrative agencies and report the issue.
(Translated from Central News Agency)