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Gradual recovery has been seen across the 23W, with the inner wards regaining some momentum.
- This quarter, average rents in the Tokyo 23 wards (23W) increased 1.7% QoQ and 3.1% YoY to JPY 4,052 per sq m.
- Rents in the central five wards (C5W) increased 1.5% over the quarter and rose to JPY4,856 per sq m. The C5W submarket saw the largest annual growth at 4.2%.
- The C5W premium grew to 19.9%, up 1.7 percentage points (ppts) from last year, exceeding the pre-pandemic level.
- Chiyoda posted the largest gain on a quarterly basis of 4.8%, also seeing an annual increment of 7.9%, stemming from several new developments that have been listed on the market, which may signal temporary strong growth.
- The premium for the 45-60 sq m size band grew relative to smaller units in the C5W.
- The average occupancy rate in the 23W rose by 0.4ppts from the previous quarter to 96.4%. The East submarket experienced the largest increment at 1.3ppts, a rebound from the cyclic contraction in the previous quarter.
- Although migration into the 23W has decreased compared to pre-pandemic times, Tokyo will keep attracting younger migrants in search of career and education opportunities.