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Rents continue to rise, with mild increments during the peak moving season.
- Average rents in the Tokyo 23 wards (23W) have seen mild increments over the quarter, inching up 0.2% quarter-on-quarter (QoQ) to JPY4,037 per sq m, and increasing 1.3% year-on-year (YoY).
- Rents in the central five wards (C5W) also saw minimal changes, decreasing 0.3% QoQ to JPY4,800 per sq m, to a yearly increase of 0.3%.
- The C5W premium over the 23W average is 19.2%, and has been higher than pre-pandemic levels since 2022.
- Minato saw the largest quarterly increment of 2.2%, while Chuo saw the largest correction of 2.0%. The market has been stable overall in the 23W.
- The 45-60 sq m size band saw some corrections this quarter, but maintains a comfortable premium over smaller counterparts.
- Average occupancy rates in the 23W declined by 0.5 percentage points (ppts) to 96.6%, while those of the C5W dipped 0.7ppts to 96.3%.
- An analysis of rental housing stock and supply data suggests a greater focus on larger units, as well as on the Inner East submarket.