The high real estate prices in the main areas of Tokyo, invitations to reduce foreign property

In the Shiboya area of ​​Tokyo, tall skyscrapers and luxury residential units symbolize real estate madness in Japan – as prices have increased in recent years.

In 2024, the average price of the new apartments in 23 municipalities in the heart of Tokyo was 111.81 million yen (about 760,000 dollars), according to the report of the Institute of Real Estate Economic Research earlier this year. The average price – a better scale in the market – was 89.4 million yen, an increase of 9 % over the previous year.

On an average basis, apartment prices jumped in 23 suits in Tokyo about 64 % from 2021 to 2025, much exceeding 26 % in the Greater Tokyo.

Meanwhile, the levels of income in Japan are still low compared to many of its advanced peers, with minimal wages in the wage and one of the widest gaps in wages between the sexes, making the ability to afford costs. In 2024, Japan ranked 25 out of 34 members of the Organization for Economic Cooperation and Development ranked on the basis of equal power and average annual wages, with $ 49,446.

Real estate prices have risen in the main areas of Tokyo, and they are partially nurtured by high construction and employment costs, and they are weak and relatively low, attracting investors abroad.

The urban property boom attracted political attention, with a discussion about the restrictions of foreign capital that appeared during the last parliament elections. Unlike countries like Australia, Canada and Singapore, Japan does not have restrictions on foreign property ownership.

The Democratic Party of the People or DPFP, which has received solid gains in the July elections, is expected to submit a draft law that is keen on foreign real estate purchases early in the unusual autumn diet session, according to local media. DPFP Yuichiro Tamaki leader has argued that home prices in urban areas have partially increased to investors abroad who buy real estate for non -residential and speculative purposes, and the idea of ​​”vacancies” was presented to reduce these acquisitions.

Meanwhile, Sanseitō, a right -wing popular party, is holding a campaign on the “Japan First” platform to combat immigration, to be ready to limit the acquisition of foreign lands but has not yet specified a timetable for its presentation.

With the absence of the ruler’s alliance to the majority in both the diet councils, the positions of the opposition parties have become increasingly necessary in the formation of legislative results.

Tobias Harris, founder of Japan Consulting Political Risk Company, said it was difficult to separate foreign property ownership from the broader discussions about the foreign population in Japan. Although it is not the axis of Sanseitō, the issue is arid because it provides a more clear legal path to work for other issues.

“The party’s speech on this issue has confirmed both national security and economic security, which hints the risks of some foreigners who buy property and also influence the quality of Japanese life if they cannot afford the costs of homes.”

It is difficult to determine the exact scope of foreign purchase, as Japan does not publish official statistics on the nationality of the buyer, but it is a semi -annual survey conducted by Mitsubishi UFJ TRUST & Banking Corp, published in March 2025, is sold in Cheya in Tokyo, Shepoya, and Minato, by 20 % of new apartments usually.

“Foreign purchase is one of the factors, but local investors and residents are also buying,” said Makoto Sakoma, the first researcher at the Japanese Research Institute at the Research Institute at the Japanese Research Institute.

Sakoma pointed out that although the Bank of Japan has raised interest rates since March of last year, it is still low in terms of real aspect and abundant liquidity is still circulating in the market with many of them flowing into urban property.

Harris said that the expectations of any legislative change depend on the political scene in Japan. The new prime minister or the variable coalition dynamics can reshape how opposition parties put issues such as foreign ownership on the agenda.

Romeo Marcantooni, a doctoral candidate at Wida University, who focuses on the policy of the Japanese opposition, said that it is unlikely to fade the importance of moving forward, noting that Sansito has increased her speech to foreigners and foreign capital since he won three seats in the House of Representatives last year.

However, he pointed out that the legislative path is uncertain, as urgency priorities, such as tax cuts, cash leaflets, and gasoline tax on discussions in the short term.

While there was a real estate boom in major cities, the country had about 9 million deserted homes, Known as AkiaStarting in 2023, primarily in rural areas.

Although Akiya can be bought at a cheap price, it does not match the needs of many local buyers. Many are in poor condition, located away from jobs and services, or need renovations that cost $ 20,000 to $ 300,000, depending on the real estate state and its location. Cultural shame stigma around used homes and limited government support for activation limits their appeal.

“When you look at the countryside, we have a big problem in stagnation, and the prices do not rise or sell homes,” said Parker Allen, co -founder of Akiya & Inaka, a real estate platform that helps buyers of corpses in Japan countryside.

Akiya maintains a little gravity for most Japanese, but it was attracting the attention of foreign buyers looking for lower prices, traditional architecture, and romance to restore an old house. Allen warns that any potential restrictions on ownership of foreign property should be aimed at only to Metropolitan markets where competition with the local population is more arterial.

“The most logical way is to focus on cities,” he said. “If the foreign purchase is accelerating, the price of some people may be outside the market – but we are only talking here about the fifth roads of Japan.”