Tokyo Central residential rents inch up by 0.7% in Q2

Shinjuku and Minato saw the largest rental growth at 2.2% and 1.7%.

Tokyo’s Central Five Wards (C5W) enjoyed moderate growth in Q2/2024 with average rents increasing by 0.7% QoQ to JPY5,063 per sq m, according to a Savills report. 

“Indeed, centrally located residences in Tokyo have been extremely popular in the post-pandemic period, which can be reflected in average rental levels having exceeded pre-pandemic levels by a notable margin,” the report added.

Here’s more from Savills:

Shinjuku and Minato witnessed the largest quarterly rental growth at 2.2% and 1.7%, respectively, while Chuo and Chiyoda also made further quarterly improvements, at 1.0% and 0.7%, respectively. Shibuya’s average asking rents contracted by 1.8% QoQ, although this counterintuitively appears to be a sign of strong demand. 

Indeed, the number of available units, especially newer ones with higher rents, has decreased by a significant amount, suggesting that this contraction can be largely attributed to many premium units being taken off the market, lowering average listed rents. 

Owing to its proximity to workplaces, availability of public transport and amenities, and premium status within Tokyo, the C5W submarket’s appeal as a residential area looks to continue, demonstrated by its net influx of over 10,000 residents between March and May.