Neyagawa City in Osaka Prefecture plans to introduce a new vacant home circulation promotion tax to encourage owners to sell unused properties [1].
The measure targets a systemic issue in Japan where existing tax laws often make it more financially advantageous for owners to leave properties empty rather than sell them. By penalizing inaction, the city hopes to increase the supply of available housing for young people and new residents moving into the area [1], [2].
Mayor Keisuke Hirose said the vacant home circulation promotion tax will serve as a "switch" for behavioral change [1]. The city intends to target all vacant homes across the entire city that lack actual residency [3]. This approach is designed to push properties back into the market to prevent urban decay and support population growth [2].
A city spokesperson said the move is intended to address the current tax system that rewards neglect, and instead push vacant homes toward the market [2]. The initiative aligns with broader efforts in Japan to manage the growing number of abandoned buildings as the population shrinks.
City officials are working toward a target implementation date of fiscal year 2029 [2], [3]. The timeline allows the municipality to refine the tax structure and notify property owners before the levies begin.
According to a city representative, the goal is to introduce the system as early as the 2029 fiscal year [3]. The city believes that financial pressure on owners will be the most effective way to ensure that homes are either renovated, rented, or sold to those who will occupy them.
“"Vacant home circulation promotion tax will serve as a 'switch' for behavioral change."”
Neyagawa's approach reflects a growing trend among Japanese municipalities to use fiscal penalties to combat the 'akiya' or vacant home crisis. By shifting the financial burden onto owners of unused land, the city is attempting to artificially stimulate the real estate market and counteract the demographic decline that often leads to neighborhood blight.
