The area around Kaminarimon Street in Asakusa, Tokyo, where land values have surged — June 27. (©Sankei by Rei Yamamoto)
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On July 1, Japan's National Tax Agency released its annual land value assessments, revealing a sharp 29% increase in property prices on Kaminarimon Street in Asakusa 1-chome, Taito Ward, Tokyo. This marked the third-largest rise among all tax office jurisdictions nationwide.
Land values in the area are now approximately 1.9 times higher than pre-pandemic levels. Experts attribute much of this growth to a wave of short-term rental properties targeting foreign tourists and a surge of overseas capital, particularly from China.
Ignoring Market Value
"My Chinese friends treat the money they bring to Japan as if they can afford to lose it," said a Chinese man this spring while speaking to a local real estate agent during his search for a property in Asakusa to convert into a short-term rental.
He ultimately purchased a roughly 40-year-old building near Kaminarimon for about ¥500 million (approximately $3.4 million USD), paying the full amount upfront. The building is believed to be intended for short-term rental use.
According to the real estate agency involved, foreign investors began buying up properties for short-term rentals around three years ago as the pandemic began to subside. "They seem to treat it like a high-stakes gamble, with little concern for actual market value," one company representative said.
Short-term rentals, where travelers stay in private residences for a fee, have been legal under the Private Lodging Business Act since June 2018. Since then, the number of registered properties has steadily grown. As of May 2025, around 32,000 properties were registered nationwide, with more than one-third located within Tokyo's 23 wards. In Taito Ward, home to Asakusa, listings have surged roughly 80% compared to May 2019.
According to the Japan Tourism Agency, 465,351 people stayed in short-term rentals across Japan in February and March 2025. This was a 48.7% increase over the same period the previous year. Foreign nationals made up more than half of those guests, with Chinese travelers comprising the largest share at 16%, followed by South Koreans at 14% and Americans at 12%.
Rising Rents and Complaints
The boom in short-term rentals is beginning to impact local residents. A 45-year-old office worker living near Asakusa said her rent rose by ¥4,000 (about $30) when she renewed her lease in November 2024. "I've lived here for seven years, and this was the first time my rent went up. I was shocked," she said.
The influx of short-term visitors has also led to complaints from neighbors, including issues with noise and improper garbage disposal. "As the number of short-term rentals increases, so do the complaints," said an official at the Taito Public Health Center.
Naoto Oshige, a senior researcher at the Urban Future Research Institute, says foreign investment is clearly fueling the rise in land prices. He explained that the weak yen and low interest rates are making Japan increasingly attractive to overseas buyers. He also noted that this trend is likely to continue for the foreseeable future.
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Author: Rei Yamamoto, The Sankei Shimbun
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