Freedom, Fairness, and the Future of Japanese Real Estate
A Deep Dive into the PIVOT Debate between Norihiko Sasaki and Tomohiro Makino
Introduction: Japan at a Tipping Point
As residential property prices in Tokyo and other major cities surge to historic highs, a fundamental question has entered public discourse: Should Japan begin to regulate foreign ownership of its real estate?
This question is no longer confined to fringe commentary. It is being seriously debated by economists, housing experts, and even politicians. One of the most thoughtful discussions on this topic recently aired on PIVOT Money, a program hosted by Japan’s leading economic media startup, PIVOT Inc.
The episode featured a focused, fact-based debate between two influential voices:
- Norihiko Sasaki, founder and CEO of PIVOT, formerly Editor-in-Chief of Toyo Keizai Online and founding editor of NewsPicks
- Tomohiro Makino, real estate business producer, former BCG consultant, and ex-Mitsui Fudosan executive
Rather than indulging in fearmongering or ideology, they tackled the issue from multiple angles—economic sustainability, housing affordability, investor fairness, and national security.
Who Are the Speakers?
Norihiko Sasaki
- Founder & CEO, PIVOT Inc. (est. 2021)
- Former Editor-in-Chief, Toyo Keizai Online
- Founding Editor, NewsPicks Japan
- Holds a Master’s degree in International Political Economy from Stanford University
- Author of several books, including The Case for Entrepreneurship and Editorial Thinking
Tomohiro Makino
- Real Estate Business Producer and Public Policy Commentator
- Former consultant at Boston Consulting Group (BCG)
- Former Executive Officer at Mitsui Fudosan
- Expert in urban redevelopment and housing policy
- Advocate of “Total Real Estate Production”—a cradle-to-operation approach for real estate projects
What Was Discussed in the Debate?
1. The Debate Is Not Anti-Foreigner
Both Sasaki and Makino stressed that this issue is not about xenophobia or nationalism. Rather, it is about maintaining fairness and sustainability in Japan’s housing market. As Sasaki noted, “Japan should remain an open society,” but Makino responded, “Unregulated openness is no longer viable in today’s world.”
2. The Market Is Distorting
Makino pointed out how urban housing in Japan, particularly in Tokyo’s prime wards, is increasingly being acquired by non-resident foreign buyers and institutional capital. These players are not necessarily interested in living in or managing the property—they are simply parking wealth.
This speculative dynamic is fueling rapid price increases, making homeownership a distant dream for average Japanese citizens, particularly younger generations.
3. Japan Is an Outlier in Global Terms
Using a slide presented during the program, Makino outlined how major economies have already implemented restrictions on foreign real estate purchases:
| Country | Regulation Type |
|---|---|
| Canada | Ban on most non-resident purchases (2023–2027) |
| Australia | Ban on existing homes; foreigners limited to new builds |
| New Zealand | Ban on existing homes for non-residents (since 2018) |
| Singapore | 60–65% Additional Buyer’s Stamp Duty (ABSD) |
| Switzerland | Permit-based restrictions (Lex Koller Law) |
| Denmark | Government approval required for foreign buyers |
| China | Residence requirement; investment properties prohibited |
| South Korea | Mostly unrestricted, though monitoring is increasing |
| Japan | No meaningful restrictions |
The chart makes clear that Japan is among the few advanced economies that still have no specific restrictions on foreign land or property purchases.
4. Policy Vacuum in Japan
Japan does have some legal tools—such as the “Important Land Law” which allows for land use restrictions near military bases and critical infrastructure—but they are rarely enforced and not designed to address urban speculation.
Japan is also bound by World Trade Organization rules (GATS), which limit the use of outright nationality-based restrictions. However, as Makino explained, many other nations have introduced clever, lawful distinctions based on residency status, visa type, or tax presence.
5. Public Concern Is Real
Makino cited recent surveys showing a rising sense of unease among Japanese citizens about the pace and scope of foreign real estate acquisitions. A survey by Mitsubishi UFJ Trust Bank, shown during the broadcast, revealed that more than 60% of respondents believe the government should impose some form of restriction on non-resident foreign buyers, especially in central Tokyo.
Moreover, Tokyo Metropolitan Government itself is now requesting that developers include five-year resale restrictions in new condo sales contracts—primarily as a response to pre-handover speculative flipping, often involving foreign entities.
What Could Be Done?
Makino proposed a number of moderate policy options, including:
- Introducing minimum residency requirements for buyers
- Restricting foreign purchases near critical national infrastructure (ports, bases, etc.)
- Creating a property ownership registry that distinguishes foreign from domestic holders
- Applying a short-term capital gains tax on pre-handover resales of new units
- Tightening corporate transparency for asset-holding shell companies
These are not radical proposals. As Makino pointed out, they are already in place in many parts of the world.
The Stakes for Japan
Without any action, Japan may find itself:
- Losing control over strategic urban and rural land assets
- Accelerating wealth inequality and displacement in its cities
- Allowing a two-tier housing market to evolve—one for global capital, the other for everyone else
Final Thoughts
This is not a call for closing Japan’s doors. It is a call for updating policy frameworks to reflect 21st-century realities. Housing is not just an investment asset—it is a pillar of social stability and national sovereignty.
By watching and engaging with this debate, both Japanese citizens and foreign investors can better understand the broader implications of the current laissez-faire status quo.
Makino and Sasaki have done a public service by framing the issue with nuance, facts, and mutual respect. Their conversation deserves a wider audience—both in Japan and abroad.
Are you a foreign investor, real estate professional, or policy analyst with a stake in the Japanese market?
What are your thoughts on this debate? Should Japan follow the global trend and restrict non-resident real estate ownership? Would this change your investment strategy?
To explore the legal, tax, and market implications for your specific case, feel free to contact us directly.
About the Author
Toshihiko Yamamoto is a Tokyo-based licensed real estate advisor and CCIM. A former trading company executive with global experience, he now supports high-net-worth individuals and institutional investors in navigating Japan’s unique real estate landscape. His firm specializes in premium Tokyo assets and investment consulting tailored to international clients.
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Source: Pivot YouTube channel (in Japanese)
Toshihiko Yamamoto is the founder and principal broker of Yamamoto Property Advisory, a distinguished real estate brokerage in Tokyo that specializes in luxury residential and investment properties for an international clientele. His firm caters to discerning investors seeking premier properties for personal use and income-generating whole buildings for investment purposes.A licensed realestate broker in Japan, Mr. Yamamotoholds an MBA from Bond University in Australiaand a Certified Commercial Investment Member (CCIM) designation from the CCIM Institute in the United States. His extensive international experience, having lived abroad in Australia and the United Kingdom, equips him with a nuanced understanding of global real estate trends and the unique needs of foreign investors.With over two decades of experience in international business, Mr. Yamamoto has successfully conducted business with clients from more than 20 countries. As a seasoned property investor himself, he provides informed guidance to his clients as they navigate the intricacies of the Japanese real estate market to secure optimal investments.Discover more in his book, “The Savvy Foreign Investor’s Guide to Japanese Properties: How to Expertly Buy, Manage, and Sell Real Estate in Japan,” available on Amazon, iBooks, and Google Play.Connect with us through social media on Instagram, WhatsApp, and LINE for further information and expert assistance.
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