Tokyo residential rents rise 5.3% annually in Q2

Rents in the central five wards rose for the twelfth consecutive quarter.

Tokyo's residential leasing market continued to strengthen in the second quarter of 2026, with average rents across the city's 23 wards rising 2.8% quarter-on-quarter and 5.3% year-on-year to JPY4,829 per sq m, according to Savills.

Savills said most wards recorded quarterly rental growth, while every area posted annual gains, reflecting continued resilience in the mid-market rental sector.

The central five wards (C5W) recorded a twelfth consecutive quarter of rental growth, with average rents increasing 1.4% quarter-on-quarter and 5.2% year-on-year to JPY5,831 per sq m. Chiyoda led quarterly growth within the C5W at 3.4%, followed by Shinjuku (2.4%) and Chuo (2.1%), while Minato was the only ward to record a quarterly decline, easing 0.8%.

On an annual basis, Chuo posted the strongest increase in the C5W, with rents climbing 7.9%, ahead of Minato and Shibuya, both up 5.6%.

According to Savills, the Inner North submarket was the strongest quarterly performer among all submarkets, with rents increasing 2.7% quarter-on-quarter and 6.8% annually to JPY5,083 per sq m. Bunkyo recorded the largest quarterly increase outside the C5W, rising 3.8%.

The South submarket posted rental growth of 1.6% quarter-on-quarter and 6.4% year-on-year, while the Inner East and West submarkets both recorded quarterly gains of 1.9%.

Savills also highlighted strong annual growth in the Outer North submarket, where rents increased 8.3% year-on-year to JPY4,258 per sq m, the highest annual growth across all submarkets. The Outer East recorded a more modest quarterly increase of 1.0%, although annual rental growth remained robust at 6.6%.