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Rents continue growth amid tightening supply and strong demand.
- Average rents* in the Tokyo 23 wards (23W) strengthened by 5.0% quarter-on-quarter (QoQ) and 7.3% year-on-year (YoY), reaching JPY4,547 per sq m. Most wards saw quarterly rental growth while all wards saw notable annual rental increase.
- Average rents in the central five wards (C5W) grew by 5.2% QoQ and 9.9% YoY to JPY5,524 per sq m. A combination of high demand for more affordable units, and a large influx of new expensive units to the market have likely contributed to these steep rental increments.
- The C5W rental premium over the 23W average rose 1.6 percentage points (ppts) QoQ to 21.5%.
- Minato recorded the largest rental growth of 8.0% QoQ, while the rest of the C5W wards also posted healthy increases between 3.2% QoQ and 6.1% QoQ.
- The premium gap between larger and smaller units appears to be narrowing, with the smaller 15-30 sq m size band observing the strongest rental increase at 6.4% QoQ, while the larger 45-60 sq m size band posting the slightest gain at 2.6% QoQ.
- Average occupancy rates in the 23W increased by 0.3ppts QoQ to 96.8% while the C5W remained flat over the quarter at 96.0%.
*These are reference figures. Please refer to the Note on page two of the report for further information.