Key Facts
• May 2025: Kobe City launched a panel to address tower mansion vacancies.
• 34% of units above the 40th floor lack resident registration.
• 60% of owners in these units do not reside in them.
• Tax proposal targets long-term vacant units to encourage rental or occupancy.
• July 2025: Industry experts noted high investment by affluent Asian buyers.
• Tax revenue may fund disaster prevention and building maintenance.
• January 2025: Concerns raised about rising prices due to investment purchases.
• October 2025: Third panel meeting planned post-mayoral election.
• If implemented, the tax would require a new local ordinance.
Summary
Kobe City is considering a tax on long-term vacant units in high-rise tower mansions, particularly those above the 40th floor, where 34% of units lack resident registration. This initiative, launched in May 2025, aims to address concerns over rising property prices driven by investment purchases, notably by affluent Asian buyers. The tax is expected to encourage owners to either rent out or occupy their units, mitigating risks of building neglect. Revenue from the tax could support disaster prevention and maintenance efforts. A third panel meeting is scheduled for October 2025, following the mayoral election, to finalize discussions. If approved, the tax would require a new local ordinance as it falls outside existing tax laws.
