Is This the End for Minpaku? Neyagawa City Says “No More” to Special Zone Short-Term Rentals
Source: Sankei Shimbun, August 12, 2025
On August 12, Neyagawa City in Osaka Prefecture made a decisive move: it will withdraw from Japan’s “Special Zone Minpaku” program. This scheme, designed to boost tourism by allowing private homes and condos to operate as short-term rentals under relaxed rules, is now facing growing backlash.
The official reason?
An increasing wave of complaints from residents—many directed at the behavior of foreign tourists. According to the city, citizens are worried about late-night noise, garbage disposal violations, and property damage. In reality, much of the frustration stems from a familiar pattern across Japan: foreign visitors, particularly from China, repeatedly ignoring local rules, leaving rooms in disarray, creating disturbances in the middle of the night, and engaging in questionable or outright illegal activities.
Mayor Keisuke Hirose did not mince words: “Special Zone Minpaku is unnecessary for the current Neyagawa City.” The city has already petitioned Osaka Prefecture to be removed from the designated National Strategic Special Zone area.
If the exit is approved, the city will consult with the two currently approved operators about transitioning their facilities into “simplified lodging” under the Hotel Business Act.
This move is part of a broader shift across Japan. More and more local governments are questioning whether the short-term rental boom—once touted as an economic engine—has instead become a source of noise, trash, and tension. For many Japanese residents, the message is clear: they feel their peace and daily life are being eroded by unruly tourism, and they are running out of patience.
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Source: Sankei Shimbun article
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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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