Rental growth bounces back in the C5W, while the 23W remain unchanged over the quarter. Nonetheless, solid annual growth persists, with both submarkets rising by around 6% YoY.
- As of Q4/2019, average mid-market asking rents in the Tokyo 23 wards (23W) remained flat over the quarter at JPY4,044 per sq m, whilst rents grew 5.8% over the year.
- Average mid-market rents in the central five wards (C5W) stand at JPY4,842 per sq m after growth of 2.0% QoQ and 6.2% YoY.
- The C5W expanded its premium over the 23W average to around 20%. Discounts narrowed in the other wards.
- Nakano in the West was the top performer this quarter following growth of 7.8% QoQ. therwise, over the year, Sumida impressed, with asking rents jumping 9.5% as newunits with above-average rents entered the market.
- Units in the 15-30 sq m size band continue to dominate the market. That said, asking rents for these properties in the 23W fell 0.4% QoQ to JPY4,027 per sq m. Listings for the largest apartments remain relatively sparse.
- Occupancy in the 23W held firm in Q4/2019. In the C5W, however, pockets of vacancy emerging in Shinjuku dragged the overall rate down slightly.
- Q4/2019 was the third quarter in a row where listings increased in the 23W – currently at levels not seen since Q2/2018.