Estate Prime · Japan Real Estate Advisory
CASA PIAZZA Nerima Fujimidai — 2020-built RC block, 12 units
2020-built RC block of 12 · 4.20% gross on full occupancy · ~41 years of statutory life remaining
Fujimidai 2-chome, Nerima-ku, Tokyo
Price
¥289M
JPY
Monthly rent
101.3
×10k JPY/mo
Yield
4.20
%
Type
Apartment
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Advisor Perspective · HK Buyer Focus
Estate Prime Advisor View
Advisor View 01
4.20% is not "a low yield" — it is the price of a long loan
At first glance 4.20% looks thin: an older timber block in the same ward can quote 7–8%. But the two do not sit on the same financing line. Japanese bank loan tenors are capped by statutory useful life (47 years for RC). Built March 2020, this asset has ~41 years left; the same money spent on a 35-year-old RC leaves 12 years, a far shorter amortisation and much heavier annual principal repayment — three extra points of headline yield does not necessarily leave more cash in hand. The gap matters more at exit: the next buyer can also borrow, which is what makes the asset sellable. What 4.20% buys is financeability and liquidity, not yield.
Advisor View 02
Roughly 80% of the price is building — the depreciation shield and the tax bill are the same coin
The land is only 89.57sqm (about 27 tsubo), while total floor area is 298.97sqm. Using the 2026 published land-price average around Fujimidai Station of ¥548,500/sqm, the land is roughly ¥49M — about 17% of the price; even marked up to a Neighbourhood Commercial level it stays around 20%. So roughly 80% of the value sits in the building. That cuts both ways. On the upside, the depreciation base is large: a second-hand RC building of this age carries ~42 years of remaining depreciable life, so on an indicative building allocation of ~¥240M the annual write-down is about ¥5.71M — a meaningful book deduction against ¥12.16M of assumed gross income. On the downside, a building-heavy asset carries a heavier building portion of fixed-asset and city-planning tax, and the new-build reduction (five years for mid/high-rise fire-resistant housing) expired in 2025. Note: the building allocation follows the sale contract and its consumption-tax figure. Depreciable life and the actual tax effect must be confirmed by a Japanese tax accountant on the real numbers; the above is indicative only.
Advisor View 03
Neighbourhood Commercial: Nerima's minpaku time restriction does not apply to this site
The market reads Nerima as "strict on minpaku — weekends only". More precisely: the ward's private-lodging ordinance restricts operation to Friday noon–Monday noon and around public holidays only in exclusive-residential zones; the nationwide 180-day cap applies everywhere. This site is Neighbourhood Commercial and does not fall under that time restriction. In practice the building is tenanted and long leases are the main line — we are not using short-let income to inflate the yield here. The value of the point is longer-term flexibility: Neighbourhood Commercial also permits lodging facilities and retail use, so the regulatory hurdle for any future repositioning is lower than for most residential land in the ward. That said, at 298.97sqm the building exceeds the 200sqm threshold, so a change to hotel/inn use would require a building-certification application for change of use, plus compliance with fire-safety and ward requirements. Whether any application is approved depends on the authorities' actual review; no guarantee is made, and we recommend confirming with the competent authority before purchase.
Advisor View 04 · Risk disclosure (must read)
⚠️ "Assumed full occupancy" is an assumption — the seller's photos show several empty units
Risk: the public listing states only an assumed full-occupancy income of ¥12.156M and a 4.20% gross; it does not disclose current occupancy. Meanwhile the seller's photographs show units 301, 302, 303, 401 and 501 — at least five — completely unfurnished and empty (these may date from completion in 2020, or may reflect current vacancy). Across 12 units, if only 10 are let the gross falls from 4.20% to about 3.51%. Discount: the market already discounts "assumed full occupancy" pricing, but this price may not fully reflect the actual vacancy position. Action: before making an offer, require the rent roll from the seller (per-unit current rent, lease start and end dates, deposits, which units are vacant) together with 12 months of actual income and expenditure, and ask for the photographs' capture dates. Actual occupancy is the deciding factor on this asset — do not underwrite to 4.20% until the rent roll is in hand.
Advisor View 05 · Risk disclosure (must read)
⚠️ Only 27 tsubo of land: the downside is carried by the building, not the land
Risk: 89.57sqm (about 27 tsubo) of land is small relative to a ¥289M price. In Japanese income property the land value is normally the floor — however tired the building, the land remains. Here land is an estimated 17–20% of the price, so as the building ages the cushion under the value is thinner than on a land-heavy asset. Twelve units on 27 tsubo also means that any future rebuild is hard-capped by 80% coverage and 300% FAR, limiting redevelopment value. Discount: conversely, that intensive use of a small site is exactly why this asset yields 4.20%. Land-heavy older stock in the same area at the same price typically shows 1–2 points more headline yield; the two are sides of one coin, and the market has already priced the trade-off. Action: obtain the disclosure statement to verify the site area (registry 89.57sqm versus any surveyed figure) and the building-certification and completion-inspection records, and confirm that the gap between the 298.97sqm floor area and the ~268.71sqm implied by 300% FAR is attributable to common corridors and stairs excluded from the FAR calculation. Also obtain the long-term repair plan and confirm the timing and funding of the first major repair cycle for a 2020 building.
Investment Highlights
Investment Highlights
Built March 2020 — a 6-year-old RC five-storey block of 12 units, 1R to 1LDK (18.36–34.34sqm). RC has a 47-year statutory life, leaving ~41 years — the age band where Japanese banks still write long-tenor loans
Assumed full-occupancy income ¥12.156M/yr, 4.20% gross (indicative, not a guarantee); across 12 units, one vacancy costs only ~8.3% of annual income
Entry around HK$13.87M; all units all-electric, with monitor auto-lock, delivery lockers, security cameras, bathroom TV and internet-ready wiring
Zoned Neighbourhood Commercial — Nerima Ward's minpaku ordinance restricts operation to weekends and holidays only in exclusive-residential zones, a restriction this site does not fall under
Published land prices around Fujimidai rose 6.65% in 2026, and 22.5% over five years across the Fujimidai/Nakamurabashi area (tochidai.info compilation of MLIT published land prices, 2026)
Market Context
Nerima Ward's 2026 published land price averages ¥567,453/sqm, up 6.68% year on year (residential +6.23%, commercial +8.90%). Around Fujimidai Station the average is ¥548,500/sqm, up 6.65%, with neighbouring Nakamurabashi at ¥620,714/sqm, up 7.28% (tochidai.info compilation of MLIT published land prices, 2026). The Fujimidai/Nakamurabashi area has risen about 22.5% over five years, among the stronger segments within the ward. On income assets, whole apartment blocks in Nerima generally trade in a 4–5% gross range: newer RC around the low 4s, older timber stock at 6–7% (asking levels on Kenbiya and Rakumachi, August 2026). At 4.20% this asset sits inside the market band for newer RC blocks — neither cheap nor expensive. Negotiating room will come from actual occupancy and the seller's motivation, not from the headline yield.
Financial Analysis
Financial Analysis & Cash Flow
Currency Conversion · HKD First
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(Indicative only — consult an advisor for actual figures)Scenario Return Comparison & Analysis
Scenario Return Comparison & Analysis
| Scenario | Annual (est.) | Monthly (est.) | Gross yield | Leveraged* |
|---|---|---|---|---|
| Long lease, assumed full (gross) | ¥12.16M/yr | ¥1.01M/mo | 4.20% | 8.41% |
| ⚠️ Net of operating costs (25% cost ratio assumed) | ¥9.12M/yr | ¥760k/mo | 3.15% | — |
| ⚠️ Stress case: 2 units vacant (83% occupancy) + 25% costs | ¥7.60M/yr | ¥633k/mo | 2.63% | — |
* Leveraged yield assumes a 50% loan, computed on the actual equity outlay (¥144.5M) before loan interest. A 2020-built RC asset has ~41 years of statutory life left, the band where long-tenor lending is available — though the LTV and term actually obtainable by an overseas buyer vary by bank.
* The ¥12.156M assumed full-occupancy income is the seller's published figure, averaging about ¥84k/month per unit. For reference, average rents within a 10-minute walk of Fujimidai are ~¥64.8k for a studio and ~¥85.7k for a 1K (LIFULL HOME'S, August 2026); at ~6 years old with all-electric fit-out and auto-lock, pitching at or above the 1K level is reasonable — but actual rents must be verified against the rent roll.
⚠️ The 25% cost ratio used for the "net" line is an industry rule of thumb for a whole RC block (management fees, common-area utilities, cleaning and maintenance, insurance, fixed-asset and city-planning tax, repair provision) — it is not a seller-published figure. Property tax is the largest single item and this asset is building-heavy, so request the seller's most recent tax notice to verify.
⚠️ The stress case assumes 2 of 12 units vacant (83% occupancy) alongside the 25% cost deduction, to show the downside while current occupancy remains undisclosed. It is not a forecast.
The logic here is not "high yield" — it is trading a financeable, low-maintenance-risk asset for a long, steady cash flow. Built March 2020 in reinforced concrete with ~41 years of statutory life remaining, the age band matters for more than newness: banks will write long-tenor loans against it, the next buyer can borrow too, and exit liquidity is protected. Twelve units mean a single vacancy costs only ~8.3% of annual income, far less volatile than putting the same money into two or three condo units; all-electric fit-out also removes future gas-pipework renewal costs. The trade-offs are stated plainly: 4.20% gross becomes roughly 3.15% net on a 25% cost estimate, so this is not a cash-flow play; the land is only 27 tsubo and about 80% of the value sits in a depreciating building, leaving a thin floor under the price. The decisive item is that current occupancy is undisclosed while the seller's photographs show at least five empty units — until the rent roll is produced, 4.20% is a ceiling, not a base. Suited to a long-horizon buyer who prioritises asset quality and financing terms and will do full due diligence; anyone seeking immediate high cash flow should look elsewhere.
✅ Strengths
- ·Built March 2020 — ~41 years of statutory life remaining
- ·Twelve units: one vacancy costs only ~8.3% of income
- ·8 min walk to Fujimidai, ~14–16 min direct to Ikebukuro
- ·All-electric throughout, auto-lock, delivery lockers
- ·Neighbourhood Commercial — more use flexibility than residential land
⚠️ Weaknesses
- ·~3.15% net on a 25% cost estimate — not a cash-flow asset
- ·Only 89.57sqm of land; ~80% of value in the building
- ·Current occupancy undisclosed; photos show several empty units
- ·No car parking
- ·Rebuild scale hard-capped at 80% coverage / 300% FAR
🔵 Opportunities
- ·Newer RC supports long-tenor lending — the next buyer can borrow too
- ·Building-heavy allocation gives a large depreciation base (tax effect to be confirmed by a tax accountant)
- ·Land around Fujimidai up ~22.5% over five years
- ·Neighbourhood Commercial permits lodging and retail — long-run repositioning optionality
🔴 Threats
- ·Returns fall materially if actual occupancy is below the assumption
- ·Heavy building portion of property tax; the new-build reduction expired in 2025
- ·Yen appreciation narrowing the FX edge
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Contact us → estateprime.netNeighborhood & Lifestyle
Neighborhood & Lifestyle
Fujimidai sits on the Seibu Ikebukuro Line between Nerima and Shakujii-koen, roughly 14–16 minutes direct to Ikebukuro with no change. Two stops away, Nerima offers an interchange to the Toei Oedo Line, while Seibu Yurakucho Line through-services reach the Yurakucho and Fukutoshin lines, covering Ikebukuro, Shinjuku-sanchome and Shibuya. It is a typical Nerima residential district — one step out from the centre, noticeably cheaper to live in — with tenants mainly single office workers and younger households, which matches this building's twelve 1R to 1LDK units.
Daily amenities are all within walking distance: MiniStop ~70m, Uchida Internal Medicine Clinic ~190m, Sugi Pharmacy ~250m, Renaissance sports club ~300m, My Basket ~400m and Big-A Nerima Nukui ~500m. The building fronts a 6.0m public road to the northeast — wide enough that light and airflow are not blocked at the front. There is no car parking, but demand from single tenants is low, and the 8-minute walk to Fujimidai Station matters more to commuters.
Minpaku and lodging: under Nerima Ward's ordinance on the proper operation of private lodging, operation is permitted ward-wide up to the national 180-day annual cap, with an additional time restriction — in exclusive-residential zones, operation is limited to Friday noon to Monday noon and from noon the day before a public holiday to noon the day after. This site is zoned Neighbourhood Commercial and falls outside that time restriction. Neighbourhood Commercial also permits lodging facilities; however, at 298.97sqm the building exceeds the 200sqm threshold, so conversion to hotel/inn use requires a building-certification application for change of use plus compliance with fire-safety equipment rules and ward ordinances. Whether an application is approved depends on the authorities' actual review; no guarantee is made, and we recommend confirming with Nerima Ward's public health and building departments before purchase.
Area works: the surrounding area falls within Nerima Ward's "Nukui–Fujimidai District" priority area development plan, which uses the dense-residential-area improvement programme to advance disaster resilience, traffic safety and green space — including works on Living Arterial Road A and Main Living Road No. 1 — with designated primary evacuation routes and expanded grant schemes (the FY2026 implementation contract has been awarded).
Note: the ward's two decided district plans — Fujimidai Station North District (decided 21 December 2018, covering Nukui 3-chome and Fujimidai 3-chome) and Fujimidai 3/4-chome Kanpachi South District (decided 19 June 2023) — do not, per the ward's published materials, cover Fujimidai 2-chome, so district-plan building controls such as wall setbacks should not apply to this site. Confirm the precise coverage against Nerima Ward's planning information and the disclosure statement.
Property Specifications
Property Specifications
Overview
Area & Land
Zoning & Facilities
Financials
Data Notes & Verification
Data Notes & Verification
This is a whole-building income asset (12 units) currently tenanted as an owner-change sale. The 4.20% gross is the seller's published assumed full-occupancy income of ¥12,156,000 divided by the ¥289,000,000 price — an assumption, not a guaranteed return. Current occupancy is not disclosed in the public listing; buyers should obtain the rent roll and 12 months of actual income and expenditure to verify.
The 89.57sqm land area is the registry figure and a survey may differ; the disclosure statement and survey plan prevail. Total floor area is 298.97sqm, while 300% FAR on this site implies a cap of about 268.71sqm — the difference typically arises from common corridors and stairs excluded from the FAR calculation (Building Standards Act art. 52(6)), but this must be verified against the building-certification and completion-inspection records.
Zoning (Neighbourhood Commercial), 80% coverage / 300% FAR, the 6.0m northeast public road frontage, freehold title, absence of parking and handover by negotiation are all subject to the disclosure statement. Any conversion to private lodging or hotel/inn use requires separate applications, and approval depends on the authorities' actual review; no guarantee is made. The "net" and "stress case" rows of the scenario table use an assumed 25% cost ratio and 83% occupancy as estimates — they are neither seller-published figures nor forecasts. Tax and depreciation outcomes must be confirmed by a Japanese tax accountant against the actual building allocation in the contract. Where plans differ from actual condition, the actual condition prevails. Transaction type: exclusive agency (listing agent: Tokyu Livable, Mejiro Centre). Listing no. 1195582921, published 10 August 2026.
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Japan Real Estate Advisory
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Disclaimer
Prepared by Estate Prime. All financial figures and yields are estimates and do not constitute investment advice or any guarantee. Property details follow the registry and current-condition survey; actual conditions may differ. Hotel/minpaku licensing depends on the authorities' review and is not guaranteed. FX is based on the reference-date rate; actual transactions use the rate of the day. Conduct full due diligence and consult legal and financial advisors before purchase.