Japan is preparing to introduce sweeping restrictions that will prevent foreign investors from purchasing property in Tokyo and other strategically sensitive areas, according to government sources. The move, driven by national security concerns, follows similar measures adopted by Canada and parts of Europe.
Why is Japan Taking This Step?
The proposed ban targets real estate near military installations, nuclear power plants, and other critical infrastructure. Officials argue that unchecked foreign ownership could pose risks to national security, particularly amid rising geopolitical tensions.
Global Precedents
Japan’s decision aligns with policies already in place in countries like Canada, where foreign buyers face heavy taxes, and the US, where certain transactions require government approval. Critics, however, warn that such restrictions could deter much-needed investment in Japan’s sluggish property market.
Impact on Tokyo’s Housing Market
Tokyo, a global financial hub, has long attracted foreign investors. Analysts suggest the ban could cool demand in prime neighbourhoods, though domestic buyers may fill the gap. The government has yet to confirm when the new rules will take effect.
