Strong migration trends should bring about further improvements.
- Average rents in the Tokyo 23 wards (23W) corrected marginally by 0.2% quarter-on-quarter (QoQ) to JPY4,229 per sq m, although sit 4.8% higher on a year-on-year (YoY) basis.
- On the other hand, rents in the central five wards (C5W) increased by 0.7% QoQ and 5.5% YoY to JPY5,063 per sq m.
- The C5W rental premium over the 23W average increased moderately to 19.2%.
- In the C5W, Shinjuku, Minato, and Chuo saw the most significant quarterly increases of 2.2%, 1.7% and 1.0%, respectively, while rents in Shibuya contracted by 1.8% QoQ. Overall, yearly growth among all wards in the C5W continues to perform well.
- Average rents for smaller units in the C5W in the 15-30 sq m size band increased at the largest rate in consecutive quarters, by 0.8% QoQ, while average rents for larger units in the 45-60 sq m size band decreased by 1.3% QoQ, indicating that proximity and access are becoming greater priorities.
- Average occupancy rates in the 23W loosened by 1.0 percentage points (ppts) QoQ to 96.2%, while falling marginally by 0.4ppts on an annual basis. Occupancy in the C5W also loosened moderately by 0.8ppts QoQ to 96.1%.
- Tokyo prefecture’s population has grown between 2019 and 2024, with foreign nationals comprising a greater proportion of new entrants.