The value of real estate increases in the main areas of Tokyo that calls calls to stop foreign property

In Tokyo in the area of the Shibuya, exalted skyscrapers and luxurious condominiums symbolize the madness of the city real estate of Japan – prices have increased in recent years.

In 2024, the average price of new apartments in 23 municipalities in the Tokyo center reached $ 111.81 million (about $ 760,000), the Institute for Economic Real Estate Studies said earlier this year. The average price – the better caliber on the market – amounted to 89.4 million, which is 9% more than a year earlier.

On the average basis, the prices for the apartment in 23 toky houses jumped approximately 64% from 2021 to 2025, which significantly exceeded 26% growth across the large Tokyo region.

Meanwhile, the income level in Japan remains low compared to several developed peers, with a weak minimum wage and one of the broadest gender gaps in remuneration, making accessibility. In 2024, Japan occupied 25 of the 34 members of the organization on economic cooperation and development, which are part of the parity parity parity, the average annual salary is $ 49,446.

Real estate prices in the main areas of Tokyo were cut, partly fueled by the growth of construction and labor costs, and as weak and relatively low estimates attract foreign investors.

Boom of urban property has attracted political attention, and discussion of foreign restrictions on capital presented during the recent elections in the upper house. Unlike countries such as Australia, Canada and Singapore, Japan has virtually no restrictions on foreign property.

The Democratic Party is expected for people or DPFP, which provided a firm profit in the July elections, a bill on curbing foreign real estate purchases in the fall of an extraordinary diet, according to local media. DPFP Yuichiro Tamaki leader claimed that housing prices in urban areas partially flew due to foreign investors who buy property for non-residential, speculative purposes, and paid the idea of “vacancies” to stop such acquisitions.

Meanwhile, the right populist party Sanseitō on the platform against the immigration “Japan first” also prepares its own proposal to stop the acquisition of foreign land, but has not yet determined the terms for submission.

As the ruling coalition lacks most in both houses of the diet, the positions of opposition parties are becoming more critical in forming the results of the legislation.

Tobias Harris, founder of Japan’s political risk firm, said it was difficult to separate the ownership of foreign property from wider discussions on Japan’s foreign population. Although this is not the main part of the Sanseitō platform, it said that this issue is standing out because it offers a clearer legal path for action compared to other issues.

“The rhetoric of the party on this issue emphasized both national security and economic security, hinting at the dangers of some foreigners who buy property, as well as the impact on the quality of Japanese quality when they cannot afford homes.”

It is difficult to record the exact scale of foreign purchase, as Japan does not publish official statistics on the nationality of buyers, but a half -headed Mitsubishi UFJ Trust & Banking Corp, published in March 2025, found that in Tokyo Chiyoda, Shibuya and MINATO WARDS, 20% new apartments that are usually sold to foreign buyers.

“The procurement of foreigners is one of the factors, but domestic investors and residents also buy,” said Makota Sakuma, a senior researcher at the NLI Japanese Analytical Center.

Sakuma noted that although the Bank of Japan has raised interest rates since March last year, they remain low in real conditions, and widespread liquidity is still circulating on the market, and most of it goes into urban property.

Harris noted that the forecast for any legislative changes depends on Japan’s political landscape. The new Prime Minister or the Switching Dynamics of the Coalition can change how opposition parties put problems such as foreign ownership.

Romeo Markanntudion, a doctoral candidate at Vased’s University, who focuses on Japanese opposition policy, said the detection of this issue moving forward, it is unlikely to disappear, noting that last year Sanseito increased rhetoric to foreigners and foreign capital after winning three places in the lower house.

However, he noted that the legislative path is uncertain because more pressing priorities, such as tax reduction, cash materials and gasoline collection, probably dominate the discussions in the near future.

And although in major cities there was a boom of property, there were about 9 million abandoned houses in the country, known as oceAs of 2023, primarily in rural regions.

Although akiya can be purchased cheap, they do not meet the needs of many domestic buyers. Many are in decline, located far from jobs and services, or require a repair worth from $ 20,000 to $ 300,000, depending on the state and location. Cultural stigma around houses in the elderly and restricted government support to activate even more limiting their attractiveness.

“If you look at the countryside, we have a big problem with stagnation, prices do not rise, and houses are not sold,” said Parker Allen, co-founder of Akiya & Inaka, real estate platform that helps foreign buyers find and revive vacant houses in rural Japan.

Akiya is little calling for most Japanese, but they attract the attention of foreign buyers looking for lower prices, traditional architecture and romance to restore the old house. Allen warns that any potential restrictions on foreign property should only be aimed at the capital markets, where competition with the locals is the most violent.

“The most logical way is to focus on cities,” he said. “If a foreign purchase accelerates, it can appreciate some people from the market, but we only talk about the fifth Japan avenues.”