Will Japan ban foreigners from buying homes?

If you’ve been dreaming about buying a home in Japan, the last few months of news probably feel… rough.

Visa fees for foreigners are going up.
The government has launched a study on how other countries restrict foreign real estate ownership.
There’s a new push to review immigration policy and tighten rules on some foreign residents.

Layer on top of that the social mood: viral clips of tourists blasting speakers on the subway, doing parkour in temples, and comment sections full of “go home” takes. If you’re a foreigner who genuinely loves and respects Japan and all you want is a little country house to spend as many days as you can here on a tourist visa… it’s very easy to start spiraling:

“Do I need to rush and buy a home right now before Japan bans us?”

And as someone whose job is literally helping foreigners buy homes in Japan, believe me: I’d love to tell you, “Yes, hurry, buy today.” But I don’t think that’s honest.

Let’s zoom out and look at what’s actually happening.

What has actually changed so far?

A few things are real, and they’re worth acknowledging:

• Visa fees are going up sharply
  Japan is planning its first major visa fee increase since 1978. Single-entry visas that were around ¥3,000 and multiple-entry visas around ¥6,000 are set to rise significantly, partly to cover processing costs and partly as a response to record tourism.
• Immigration and “foreign nationals policy” are under review
  Prime Minister Sanae Takaichi’s government has started ministerial meetings to rewrite policies on foreign nationals by early next year — the explicit goal is to tighten rules around people who overstay, abuse the system, or cause trouble, not to ban all foreign presence in Japan.
• There is a new focus on foreign real estate ownership
  In October 2025, the government launched a fact-finding study on how countries like Canada, Germany, South Korea and Taiwan regulate foreign buyers. The idea is to use that research to guide possible revisions to Japan’s own laws by the end of the fiscal year.
• National-security real estate is already regulated
  Japan has an “Act on the Review of Important Real Estate and Facilities” that lets the government monitor and, in extreme cases, restrict the use of land around military bases, nuclear plants, remote islands, etc. That framework is being expanded to more monitored areas in big cities

So yes: there’s real movement.
But here’s what hasn’t changed.

What hasn’t changed: foreigners can still freely buy homes

As of right now:

• Japan does not restrict foreigners from buying property.
  Foreign nationals can buy land and buildings outright, with the same ownership rights as Japanese citizens. There is no requirement for residency, a special visa, or citizenship.
• Buying a property as a foreigner does not give you a visa or residency rights. Taxes and registration rules are basically the same as for Japanese.

In other words: legally, Japan is still one of the most open major countries on earth when it comes to foreign property ownership.

And at the same time, other parts of the government are still loudly promoting foreign direct investment, they talk openly about wanting more foreign capital, ideas and people to support growth.

There’s a tension there: on one side, concern about “bad actors” and overtourism; on the other, a structural need for outside capital and visitors.

Why a blanket ban on foreigners buying homes is very unlikely

1. Japan still needs foreign capital and buyers

Foreign investors bought roughly ¥940 billion of Japanese real estate in 2024, a 63% jump from the year before, but still only a slice of total domestic investment.

Even in Tokyo, the hottest, most international market, overseas-based buyers accounted for about 3.5% of new condo purchases in the first half of 2025. That’s double the previous year’s share, but still tiny in absolute terms.

So yes, foreign money is noticeable in certain luxury pockets of Tokyo. But on a national level, foreign buyers are not remotely dominating the market the way they are in, say, parts of Canada or New Zealand.

At the same time, land prices are rising mainly on the back of domestic factors: economic recovery, redevelopment, and tourism in already popular areas, not some giant foreign land grab.

2. The real structural issue is still oversupply, not scarcity

Outside of Tokyo and a few other big cities, Japan has the opposite problem to Canada or Australia:

• a shrinking population
• aging housing stock
• a huge inventory of vacant or underused homes

Even in 2024, government data shows a broad rise in land values, but that’s concentrated in well-connected urban and tourist zones. Large parts of rural Japan still struggle with depopulation and empty housing stock.

If you ban or scare off the small pool of foreigners willing to buy 50–100-year-old farmhouses in a town that’s been shrinking for 30 years… who’s left to buy them? The government knows that.

3. Policy moves are clearly targeted at “bad actors” and strategic land

If you read the language around these new reviews, a pattern jumps out:

• The national-security land laws and updates are all about land near bases, remote islands, key infrastructure, not ski chalets or kominka in inland prefectures.
• Articles and officials keep talking about deterring “bad actors”, especially foreign state-linked buyers near sensitive sites, not normal people buying holiday homes.
• Takaichi’s team is also considering a CFIUS-style foreign investment panel to screen certain deals for national security, not a blanket ban on foreign ownership.

That lines up pretty closely with what the PM and other ministers have been signalling: this is about tightening controls on abuse, security risks, and overtourism hotspots, rather than stopping ordinary individuals from owning property.

What might actually change?

Could Japan do something about foreign buyers? Yes. The likely changes are:

• More scrutiny and reporting in sensitive areas
  The “Important Real Estate” framework will probably keep expanding around bases, ports, and key infrastructure. In those areas, foreign owners may face more reporting, restrictions on use, or in extreme cases, limits on new purchases.
• Tighter rules for non-resident investors in hot urban markets
  Because foreign investors are concentrated in a few high-end urban segments, especially central Tokyo condos, this is where any Canada-style “speculator” rules are most likely to show up first (extra disclosures, higher taxes).
• Nationality/reciprocity rules at the margins
  Some policy proposals talk about “reciprocity” (only allowing citizens of countries where Japanese can also buy freely) or limits tied to national security concerns. Analysts following these proposals generally expect them to be narrow and targeted, not a nationwide blanket ban.

But across legal and industry commentary, the tone is consistent: Japan is not expected to slam the door on foreign buyers; it’s expected to add more filters and guardrails.

What this means if you’re dreaming of a rural home

Most of our clients want to buy in rural towns. There is really no benefit for the government to ban or make it harder for foreigners to buy these homes.

The people we help:

• are buying in small towns and rural areas
• are renovating old or vacant stock
• are spending money locally
• are often the only realistic buyers for some of these houses

From the government’s perspective, that’s not a problem, that’s a solution to depopulation and vacant housing.

Could rules tighten a bit in the future? Sure. Nobody can give you a 0% risk answer. But based on what’s actually on the table right now, the most likely outcome is:

• more screening in strategic and high-demand zones (bases, ports, central Tokyo), and
• very little change for foreigners quietly buying, renovating, and using rural homes for personal use or small-scale tourism.

So… do you need to rush?

Here’s my honest view:

• If you’re already ready to buy, finances lined up, area chosen, I wouldn’t delay just to “see what happens.”
• But if you’re early in the process, I don’t think you need to panic-buy a house tomorrow out of fear that Japan will suddenly copy Canada and completely ban foreign buyers.

Could I be wrong? Absolutely. Laws can surprise us. But looking at the fundamentals, the incentives, and the kinds of proposals on the table, I would bet on incremental, targeted regulation over some overnight, blanket ban on foreigners owning homes, especially in the rural akiya markets where most of my clients are looking.

Browse opportunities yourself: Check out current listings at Nipponhomes.com

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