The Era of Buying Houses with Cryptocurrency Has Arrived... Changes in the Japanese Real Estate Market [Kim Yong-nam's Real Estate Asset Management]

'Can you buy an apartment with Bitcoin?'

A question that once seemed like an unrealistic fantasy has now become a reality. The Japanese real estate market is opening up new possibilities for digital transformation by officially introducing cryptocurrency payments.

Recently, Open House Group, a company listed on the Tokyo Stock Exchange, officially introduced major cryptocurrencies such as XRP (formerly Ripple), Solana, and Dogecoin as payment methods for real estate transactions. Following the application of Bitcoin and Ethereum from January 2025, the company has significantly expanded its cryptocurrency payment options.

Founded in 1997, Open House Group is a large real estate company in Japan that provides comprehensive real estate services, including housing sales, second-hand housing sales, management, leasing, and development. With annual sales reaching 1 trillion yen (approximately 9.8 trillion won), it holds key assets in major Japanese cities, including Tokyo. Recently, it has expanded its influence into the global market, including Los Angeles and Hawaii in the United States.

The reason behind Open House Group's adoption of cryptocurrency payments is clear. The intention is to simplify the complex procedures of real estate transactions and lower the barriers to payment in cross-border transactions. This strategy aims to utilize cryptocurrency as a practical payment method rather than just a speculative tool. Open House Group announced that this measure would apply cryptocurrency payments to all of its real estate products, including houses, condominiums, and studio apartments.

The introduction of XRP, in particular, is evaluated as a strategic decision targeting overseas investors. XRP, with its fast remittance speed and low fees, is expected to enhance the convenience of international investors' payments while reducing the complexity and costs associated with transactions through existing financial networks. This is expected to increase global investors' accessibility while lowering the barriers to entry in the Japanese real estate market.

These changes were made possible thanks to the Japanese government's policy support. Japan has established a legal foundation for the cryptocurrency and stablecoin market through the Payment Services Act and provided clear guidelines for intermediaries. As a result, companies are making more active attempts to integrate cryptocurrency into the real economy.

Globally, the combination of real estate and cryptocurrency is also becoming a new trend. In Miami, USA, luxury condos have been traded with Bitcoin, and Dubai's major developer, DAMAC Properties, has also officially introduced cryptocurrency payments. Presidio Property Trust, a US real estate investment trust (REIT), began accepting rent and management fees in cryptocurrency in 2021. In Portugal, a real estate contract was even completed solely with Bitcoin, and some countries are offering tax benefits to cryptocurrency investors.

The biggest advantage of this change is that it can replace the complex and costly international remittance procedures. By utilizing cryptocurrency, real estate transactions can be conducted in real-time without the need for separate currency exchange or remittance procedures, and the transparent transaction records based on blockchain reduce the risk of fraud and enhance trust.

Of course, there are also challenges to be addressed. The high volatility unique to cryptocurrencies can be a risk factor in the real estate market, which relatively values stability. The differing legal and tax regulations by country also remain barriers to the widespread adoption of actual transactions. Nevertheless, the various advantages of cryptocurrencies, such as XRP's remittance efficiency, SOL's smart contract functionality, and DOGE's popularity, show the potential to make real estate transaction structures more efficient and flexible.

Open House's attempt is seen as a symbolic case of the traditional real estate industry adapting to the digital age. This new approach, combining cryptocurrency and blockchain technology, presents the possibility of changing the market landscape beyond simply expanding payment methods.

The wave of change that started in the Japanese real estate market is showing signs of spreading worldwide. The challenge posed by Open House is a signal of the infinite opportunities that the fusion of real estate and cryptocurrency can create. It will be interesting to see how the real estate industry evolves in the flow of the digital economy.

<Hankyung.com The Moneyist> Kim Yong-nam, CEO of Global PMC Co., Ltd.

"The contributions of external writers may differ from the editorial direction of this publication."

Reader inquiries: thepen@hankyung.com