The ministry is requesting consideration of necessary measures
Japan's Ministry of Land, Infrastructure, Transport and Tourism included a policy item addressing sharp new-condominium price increases in its fiscal 2027 tax reform requests released on August 28. The ministry calls for consideration of measures to suppress speculative transactions that are not based on genuine end-user demand, particularly amid strong price increases in large central-city condominiums. The important legal distinction is that this is a tax reform request. As of August 31, it does not establish a new rate, holding-period requirement, geographic boundary or property-price threshold.
Policy materials highlight short-term trading in central Tokyo
The supporting document defines short-term trading for the cited survey as a transfer registration occurring within one year of initial ownership registration. The share was 6.3% in the Tokyo region, 8.5% in Tokyo Metropolis, 9.3% in the 23 wards and 12.2% in six central wards in 2023. For January-June 2024 the corresponding shares were 3.7%, 5.2%, 5.7% and 7.1%. The material also notes private-sector measures announced by the Real Estate Companies Association in November 2025, including limits on purchase registrations and restrictions on resale activity before handover.
The proposal is not framed as a foreign-buyer tax
International investors should note that the request is not presented as a tax that applies only to foreign purchasers. It is part of a broader policy discussion about short-term and speculative transactions in new condominiums. The identity of taxpayers and the detailed tax mechanism, if any, will depend on the subsequent tax reform process. Investors should therefore avoid treating a proposal as enacted law. At the same time, strategies relying on rapid resale of newly built central Tokyo condominiums should follow the year-end tax reform outline and any legislation that follows because future exit economics could be affected.