- Average mid-market asking rents in Tokyo's 23 wards (23W) stood at JPY4,018 per sq m at the end of Q2/2019, up 2.3% QoQ and 6.5% YoY.
- Average asking rents in the central five wards (C5W) were JPY4,778 per sq m at the end of Q2/2019, up 2.2% QoQ and 7.3% YoY.
- The C5W's premium over the 23W average is holding steady at 19%, but seems more likely to increase than decrease moving forward.
- Only the C5W and South recorded higher rents this quarter, demonstrating strong demand for centrally located apartments.
- Koto in the Inner East performed well this quarter, with its quarterly growth rate ranking fourth in the 23W, adding on to good performance in previous quarters.
- Occupancy was slightly lower in Q2/2019, at 96.9% in the 23W, though the Outer East and West submarkets managed to post slight increases.
- The number of concluded leasing contracts has been in decline for five consecutive months. This might be an early sign of a ceiling in the property cycle
23W rents exceed 2008 levels
GRAPH 1 | Mid-market Apartment Rental Index, Q3/2008 to Q2/2019
Residential assets in central Tokyo remain in high demand. As long as the economy continues to grow steadily, rents should also continue their gradual rise.
Savills Research & Consultancy