Kobe Launches Expert Panel to Study “Vacancy Tax for Tower Mansions”
A significant development is unfolding in Kobe for luxury condo investors:
Kobe City has officially begun discussions on implementing a “vacancy tax” on high-rise condominiums.
On May 30, 2025, Kobe convened an expert panel titled “Study Group on Housing and Tax Policy,” comprising seven specialists including professors, think tank researchers, and former Ministry of Internal Affairs officials. The chair is Professor Emeritus Osamu Tanaka of Osaka Prefecture University.
He commented: “We want to approach this based on local issues, not with a predetermined conclusion.”
Why a Vacancy Tax? Three Key Reasons
- Rising Vacancies in High-Rises
Many luxury units, especially those bought for investment, remain unused for extended periods. - Deterioration of Building Management
High vacancy rates hinder the collection of maintenance fees and decision-making in condo associations—threatening asset value. - Negative Impact on Urban Livability
With fewer full-time residents, communities become less vibrant—problematic for a city like Kobe that values its international tourism image.
In response to these issues, Kobe is exploring a policy to tax units that remain unused for a certain period.
Kobe Has Already Imposed High-Rise Restrictions
Since 2020, Kobe has restricted new high-rise developments in the city center. This potential vacancy tax is seen as a natural extension of that urban strategy.
A policy proposal is expected within fiscal year 2025, to be finalized in an official report.
How Should Investors Respond?
Should Kobe proceed, similar policies could appear in Tokyo, Osaka, or Fukuoka. We recommend investors consider the following:
✅ Reevaluate Your Investment Portfolio
Units with high vacancy risk may be better off rented or sold sooner rather than later.
✅ Review Condo Management Policies
Check how well the building is managed. A new tax may affect future maintenance plans and fees.
✅ Understand Legal Frameworks in Advance
Clarify with legal or tax advisors what criteria (usage, residence status) would trigger taxation.
Final Thoughts: A Shift from Ownership to Utilization?
This move by Kobe sends a strong message:
Even luxury properties may face taxation if they’re left idle.As Japan’s vacant housing crisis grows, owning a property is no longer enough—using it matters too.
It’s time for high-net-worth investors to rethink how they leverage real estate assets.
📞 For inquiries about wealth-managed property investments, contact
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Mobile: 080-6794-3089
📩 Email: ogawa@mirabell.co.jp
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