.jpg "Savills")
Rental growth observed across the 23W, especially the C5W, driven by sound demand.
- Average rents in the Tokyo 23 wards (23W) climbed by 1.3% quarter-on-quarter (QoQ) and 6.4% year-on-year (YoY), reaching JPY4,332 per sq m. All wards experienced rental increments on both a quarterly and an annual basis.
- Average rents in the central five wards (C5W) increased by 2.2% QoQ and 6.7% YoY to JPY5,250 per sq m.
- The C5W rental premium over the 23W average rose by 0.4 percentage points (ppts) QoQ to 19.9%.
- In the C5W, Chiyoda and Shibuya witnessed the largest rental increments of 3.1% QoQ, while Shinjuku was the most modest at 0.1% QoQ.
- Average rents for the larger 45-60 sq m size band recorded the highest increase, at 4.4% QoQ, while the 15-30 sq m and 30-45 sq m size bands grew at more moderate rates.
- Average occupancy rates in the 23W saw an uptick of 0.3ppts QoQ to 96.6%, while the C5W also increased by 0.3ppts QoQ to 96.2%.
- Average prices of new condominium units in the 23W continue to hit record levels, supported by sound demand and supply constraints resulting from rising construction and land costs.