Foreign Capital Accelerates into Japan Real Estate, Government Concerned About Speculation

Recently, large amounts of foreign capital have flooded into Japan's real estate market, pushing up property prices. Japan's Minister of Land, Infrastructure, Transport and Tourism Nakano Hiroaki stated that Tokyo's property market has "speculative transactions not based on actual demand" and the government will take measures to respond.

Data shows that in the first half of 2025, foreign capital accounted for 34% of Japan's total real estate investment, exceeding 1 trillion yen for the first time. Asian investors, particularly Chinese and Singaporean capital, are active.

Yen depreciation makes Japanese real estate more attractive to overseas investors, with property prices in Tokyo and other areas continuing to rise, and rental yields also relatively high.

The government is considering stricter regulation of foreign property purchases, including expanding declaration obligation scope and strengthening review mechanisms.

Data source: finance.sina.com.cn