News Japan to require nationality disclosure in large-scale land transactions

According to the Ministry of Land, Infrastructure, Transport, and Tourism, new regulations have been implemented, requiring purchasers of large properties to declare their nationality. The change was intended to monitor land purchases by foreign buyers. The ministry stated that the amendment to the National Land Use Planning Law took effect on 1 July. It was introduced following growing unease that extensive purchases of forested land by overseas investors might endanger local water resources.

Officials noted that the measure does not restrict non-Japanese from buying property. However, it gives governors and mayors the authority to advise changes in land use if a transaction is judged to harm public interests. In cases where buyers refuse to cooperate, local governments are now permitted to make their identities public.

The law stipulates that anyone purchasing a plot exceeding a specific size must file a report within two weeks of acquisition. The thresholds remain at 2,000 square metres in urban zones, 5,000 square metres in agricultural districts, and 10,000 square metres in forested areas. Under the revised rule, the report must now state the buyer's nationality in addition to existing details such as the price, intended purpose, and registered address of the owner.

About 19,000 filings were made nationwide in 2024, yet authorities lacked a system to document non-Japanese buyers. The ministry also plans to upgrade its land registration system to better track and analyze ownership trends across the country. This new requirement complements similar existing laws. One governs land transactions near Self-Defense Forces bases as well as other sensitive national security sites, while another regulates farmland acquisitions. Additionally, some local governments have enacted their own rules requiring prior notification for land deals near water sources.

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This is a good start. As the supply of fertile land decreases due to overuse and environmental problems (a large proportion of England's most fertile arable land is only slightly above sea level), there are likely to be more land grabs by wealthy countries – China is already buying a lot of African land. Japan needs to protect itself against this.