Dual Agency and Listing Hoarding in Japan: What Buyers and Sellers Should Know
Understanding one of the least visible practices in the Japanese real estate industry.
When searching for a home in Japan, you may have experienced situations like these:
- “The property was sold as soon as it appeared online.”
- “I contacted the agent, but was told it was already under contract.”
Many buyers have encountered similar frustrations.
One term that is often discussed behind the scenes of the Japanese real estate industry is “Kakomikomi” (囲い込み) — a practice sometimes compared to listing hoarding or property withholding.
In this article, we’ll explain:
- What Kakomikomi is
- Why it occurs
- How it can affect buyers and sellers
- How to identify a trustworthy real estate agent
from a practical, real-world perspective.
What Is Dual Agency?
Real estate brokerage companies typically earn income through brokerage commissions.
When the same brokerage company represents both the seller and the buyer in a transaction, it is known as dual agency.
In this arrangement, the brokerage receives commissions from both parties, making the transaction financially attractive for the company.
By contrast, when an agent represents only the seller or only the buyer, it is generally referred to as single agency.
In many countries, including parts of the United States, dual agency is heavily regulated due to concerns about potential conflicts of interest.
In Japan, however, dual agency is generally permitted and widely practiced.
As a result, many transactions in the Japanese real estate market involve the same brokerage company representing both sides of the deal.
What Is Kakomikomi (Listing Hoarding)?
Kakomikomi refers to the practice of:
Restricting other brokerage companies from introducing a property in order to find a buyer internally.
Examples may include:
- Telling other agents that a property is already “under negotiation”
- Delaying public disclosure of property information
- Limiting visibility on REINS, Japan’s inter-broker property information network
The motivation is simple:
The brokerage hopes to complete the transaction as a dual-agency deal and earn commissions from both the seller and the buyer.
Disadvantages for Buyers
Fewer Opportunities to Access Good Properties
In some cases, properties that should be available through the broader market become difficult to access through other brokerage companies.
As a result, a property may appear to be publicly available while not being freely circulated among agents.
This lack of transparency can make it harder for buyers to find suitable opportunities.
Pressure to Make Quick Decisions
Buyers are often told things like:
- “We have received many inquiries.”
- “There are already other offers.”
Sometimes these statements are entirely accurate.
However, when information is not shared openly, buyers may find it difficult to evaluate the true level of competition and make informed decisions.
Disadvantages for Sellers
Reduced Exposure to Potential Buyers
A property may have attracted:
- Buyers working with other brokerage firms
- Buyers willing to offer better terms
- A larger pool of interested purchasers
If market exposure is limited, those opportunities may never materialize.
Less Competitive Market Conditions
When a property is widely marketed, multiple buyers may compete for it.
This competition can help sellers achieve better terms and, in some cases, a higher sale price.
When exposure is restricted, competition may be reduced, potentially working against the seller’s interests.
Is Kakomikomi Always Bad?
Not necessarily.
This is a point that is often misunderstood.
There are situations where having one brokerage coordinate the transaction can make the process smoother due to:
- Better information management
- The seller’s preferences
- Transaction security
- Easier communication and coordination
The issue is not that one company handles both sides of the transaction.
The real concern arises when:
- Market exposure is restricted without sufficient explanation to the seller or buyer
- Decisions are made primarily for the brokerage’s benefit
- Transparency is reduced
- The interests of one party are prioritized over the other
What Should You Watch Out For?
If You Are Selling
- Avoid relying exclusively on one brokerage without comparison
- Request proof of REINS registration
- Ask where and how the property will be advertised
- Ask whether other brokerage companies are actively introducing the property
If You Are Buying
- Ask why a property cannot be introduced to you
- Confirm whether information is being disclosed clearly and transparently
- Work with an agent who is willing to explain both advantages and risks
How to Find a Good Real Estate Agent
Ultimately, the most important question is not whether a transaction is dual agency or single agency.
What truly matters is whether the agent:
- Shares information openly
- Explains both benefits and risks
- Communicates honestly
- Avoids unnecessary pressure
- Operates with transparency
For most people, purchasing real estate is one of the largest financial decisions they will ever make.
That is why choosing the right real estate professional may be even more important than choosing the property itself.
Final Thoughts
The Japanese real estate market has its own unique practices and customs.
Understanding how transactions work—and asking the right questions—can help both buyers and sellers make better decisions.
Transparency, communication, and trust are ultimately more important than whether a transaction is handled by one company or several.
When choosing a real estate agent, look beyond the advertisements and focus on whether the agent is truly acting in your best interests.
This article is intended for general informational purposes only and does not constitute legal or professional advice.
