Investment Opportunity: Military Land in Uruma's White Beach Area
This property is a 159 m² plot of military land (zasshūchi - miscellaneous land category) located in the Hefuniya district of Katsuren, Uruma City, Okinawa. The land is leased to the state, providing a stable and secure investment opportunity. The asking price is ¥6,730,000, with an annual land lease fee of ¥149,569.71, yielding a surface return of 2.22% and a multiplier of 45. The fixed asset tax for the year Reiwa 7 is ¥6,771.
Critical agent notes have been translated and provide essential insights into this military land investment. The benefits highlighted include: 1) Stable Income: There is no risk of tenant rent arrears or vacancy. 2) Rising Land Fees: Lease fees have been increasing annually for over the past 30 years. 3) Minimal Management Hassle: There are no repairs, renovations, or tenant complaints to handle. 4) Inheritance Tax Advantages: The property offers an asset compression effect. In many cases, the assessed value can be kept lower than the market price, making it a popular tax-saving measure.
The notes also detail "Reasons to Choose the White Beach Area." Amid tense Asian geopolitical conditions, White Beach is an extremely important military port for the U.S. Navy and Japan's Self-Defense Forces. Compared to other "bases located in urban areas (where discussions of return are more likely)," the possibility of the state relinquishing this land is extremely low. This means investors can collect land fees over the long term, a point highly valued by savvy investors.
The area of Uruma City, formed from the merger of several towns, is rich in history and natural beauty. An interesting local fact is that the nearby Katsuren Castle, a UNESCO World Heritage site, was a major trading hub in the Ryukyu Kingdom, connecting Japan, China, and Southeast Asia. The closest major landmark to this property is the iconic Katsuren Castle ruins, which offer panoramic views of the East China Sea and a deep dive into Okinawa's past.
