KUALA LUMPUR - A Japanese government review examining stricter controls on land ownership by foreign nationals has found that most G7 countries already impose limits on property transactions or land use, often citing national security considerations, according to Kyodo.

In some cases, governments have gone so far as to temporarily prohibit foreign buyers from purchasing real estate altogether.

Taking these international practices into account, the administration of Prime Minister Sanae Takaichi is reassessing Japan’s land ownership rules and plans to present a broader set of policy measures on foreign-related issues by the end of the month.

Among the G7, approaches differ in how governments manage foreign ownership of housing.

In 2023, Canada introduced a ban on most foreign purchases of residential property to rein in rising home prices.

The policy includes fines of up to 10,000 Canadian dollars for violators and those who knowingly assist them, while exempting groups such as spouses of Canadian citizens and holders of valid work visas.

In the United States, foreign real estate transactions are subject to scrutiny by the Committee on Foreign Investment in the United States (CFIUS), particularly when properties are located near military bases or critical infrastructure.

The United Kingdom applies an additional stamp duty surcharge of about 2 percent on property purchases by non-residents and foreign corporations, while France requires prior government approval for the acquisition of agricultural land. 

Germany, meanwhile, retains the authority to intervene in land transactions on public interest grounds, including national security concerns.

Beyond the G7, Australia and South Korea have also introduced controls on foreign land ownership.

Australia generally limits foreign buyers to newly built housing and requires government approval, while South Korea requires reporting and, in some areas, prior approval for foreign land purchases, particularly in security-sensitive regions.