As a core region of the Ring of Fire, Japan has experienced frequent geological disasters in recent years, posing a systemic risk to real estate investment. The 4.8 magnitude earthquake off the coast of Fukushima on October 24, 2025, served as another stark warning—its epicenter was only 40 kilometers from the Fukushima Daiichi Nuclear Power Plant. Although it did not trigger a tsunami, frequent crustal activity means that the earthquake resistance of buildings in the surrounding area will face long-term challenges. According to the Japan Meteorological Agency, since 2025, there have been three earthquakes of magnitude 4 or higher off the coast of Fukushima Prefecture. This swarming phenomenon is closely related to plate tectonics; the continuous subduction of the Pacific Plate beneath the Eurasian Plate makes this region one of the most seismically active areas in the world.
Direct Damage Risks from Geological Disasters
The 6.7 magnitude earthquake in Iburi, Hokkaido in 2018 caused 44 deaths, power outages for 2.95 million households, and tourism losses of 35.6 billion yen. In the same year, a landslide in Yabakei, Oita Prefecture, buried three houses and killed one person. Volcanic activity is also a significant concern. During the planned eruption of Mount Shinmoedake in 2025, volcanic ash accumulation will increase the load on buildings, corrode metal components, and lava flows could directly destroy structures. Such disasters not only cause immediate property damage but also lead to long-term depreciation of local property values—while property prices in Kobe’s core area recovered within three years after the Great Hanshin Earthquake, reconstruction costs and population outflow significantly extend the investment return cycle.
Building Safety and Insurance Cost Risks
Although Japan’s new earthquake resistance standards implemented in 1981 require buildings to withstand earthquakes of magnitude 7-8, and high-rise buildings have generally adopted seismic isolation/seismic isolation structures since 2000, frequent earthquakes still accelerate building aging. While new buildings account for over 40% of buildings in Tokyo’s high-earthquake-risk areas, the cost of repairing older buildings after an earthquake can reach up to 30% of the property value. While earthquake insurance can cover some losses, the annual premium of around 600 RMB puts pressure on investment returns, especially in the Fukushima region under the shadow of the nuclear accident, where insurance claims have many limitations.
Regional Economic and Policy Risks: Cases of local economic recession caused by geological disasters are commonplace. Following the Hokkaido earthquake, the tourism industry suffered heavy losses due to 1.149 million canceled accommodations. A wildfire in Ofunato City, Iwate Prefecture, destroyed 80 houses, leaving a huge funding gap for reconstruction. While the Japanese government has stabilized the market through monetary easing, the increasing reliance of local governments on disaster response may affect the stability of real estate tax policies.
Against this backdrop, Chinese investors need to carefully assess the risks of investing in Japanese real estate. It is recommended to prioritize obtaining professional advice through the Wise Shanghai Overseas Real Estate, Immigration and Study Abroad Exhibition, held from March 29th to 31st, 2026 at the Shanghai World Expo Exhibition & Convention Center. As an international professional exhibition, the Shanghai Overseas Real Estate Investment and Immigration Exhibition provides a comprehensive platform for investors, immigration applicants, and families intending to study abroad. It gathers global resources in real estate investment, immigration, and education, and provides access to real-time geological data, regional economic reports, and professional legal advice on an authoritative platform, making it a key way to mitigate investment risks.
Given the frequent occurrence of geological disasters, rational investment must be based on scientific risk assessment and professional consultation. Chinese investors should make full use of international exhibition resources to find a balance between safety and development, and achieve steady appreciation of their asset allocation.
