In recent years, an interesting phenomenon has emerged in Japan. The increasing influx of Chinese tourists has led to the establishment of “new Chinatowns,” creating neighborhoods where Chinese residents outnumber Japanese locals. The situation intensified when this sinicization trend began to impact one of Japan’s cultural strongholds: its pop culture. Most recently, Beijing has started to acquire traditional Japanese architecture and convert it into tourist resorts.
Kyoto. Nikkei recently reported on the story of 32-year-old Yuichi Ishikura as an example of a surprising yet significant development in preserving traditional architectural heritage through the efforts of Chinese citizens. Ishikura was born in Fujian province in China and grew up in Kyoto. His experience in a guesthouse during his university years in the U.S. ignited his passion for refurbishing old houses.
After returning to Japan in 2015, Ishikura purchased his first machiya–a traditional narrow, deep wooden house built since the Edo period–for just over $70,000. He transformed it into a tourist accommodation and remarkably recouped his investment within three years. Since then, he’s renovated more than 60 similar properties, including the Shichikutei house near Kyoto Station. He also told Nikkei his ambition to become the leading machiya operator in Japan.
The machiya threat. The disappearance of Kyo-machiya, Kyoto’s traditional machiya, is a serious issue in Japan. These architectural gems are vanishing at an alarming rate of about 800 per year. This is mainly due to a high maintenance cost, inheritance taxes, and the demand from real estate developers who replace them with modern apartments. While many Japanese seem resigned to this loss, foreign investors, particularly those from China, are seizing this crisis as an opportunity.
One notable figure in this trend is Lee Wendy, a Shanghai-born restorer who has rehabilitated 40 machiya. According to a study, around 500 foreigners, many of whom are Chinese buyers, own about 30% of lodgings with municipal licenses. These investors are transforming traditional houses into tourist accommodations while preserving their aesthetic and historical value.
Temples for sale. This phenomenon extends beyond houses. In rural areas like Shisō, about 360 miles west of Tokyo, Buddhist temples have also begun changing hands due to a lack of successors to the priesthood. One temple, acquired by a Chinese buyer after the death of its head priest in 2017, sparked local controversy due to its informal use.
Some temples have publicly denied being for sale in response to rumors circulating on Chinese social media platforms like RedNote. A notable case is the Jisso-in Temple, with 800 years of history. The temple firmly denied claims regarding its sale after discovering false advertisements targeted at Chinese investors.
Tax benefits. According to Nikkei, two main factors drive the surge in temple, shrine, and traditional Japanese house acquisitions. First, many Chinese citizens are attracted to the cultural and architectural value of these properties, which are rare in their homeland. Second, the favorable tax conditions for religious institutions in Japan appeal to investors with commercial interests. Real estate executives in Osaka are involved in selling religious properties to companies based in Hong Kong and are currently promoting additional properties in Kyoto and Nara.
Sake. The phenomenon of preserving cultural heritage has expanded beyond refurbishing old houses. In 2019, Shanghai entrepreneur Zhou Chunbao acquired Matsui Shuzo. This historic sake brewery was on the verge of closure due to management issues. Driven by his desire to introduce the Chinese people to Japanese culture through sake, he revitalized the company and its production. By 2022, the brewery earned regional recognition.
Zhou’s intervention rescued a local institution with a history dating back to the end of the Edo period. Notably, this comes at a time when the sake industry has faced considerable challenges, with a 40% decline in the number of breweries and a drop to 20% of its historical domestic sales volume.
The “soul” of Japan. Japan’s tangible heritage–including traditional houses, centuries-old temples, and ancestral distilleries–is slowly disappearing due to a lack of successors. However, a new generation of Chinese investors appears ready to take on the challenge of preserving it.
While some view this as a loss of cultural control, others see it as an unexpected form of continuity. These new Chinese investors are emerging in response to the passivity or incapacity of specific local sectors. Not only do they invest capital, but also thoughtfully and pragmatically revitalize what has been the material essence of Japanese identity for centuries.
Image | Markus Winkler
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