Tokyo mid-market residential rents rise by 6.4% in Q4

All wards saw rental growth vs last year.

In a recent report, Savills revealed that the Tokyo 23W residential leasing market has performed well, as average mid-market rents continue to grow for a third consecutive quarter, climbing by 1.3% QoQ and 6.4% YoY to JPY4,332 per sq m.

All constituent wards saw both quarterly and annual growth, which is a firm demonstration of the bright prospects in the 23W residential market looking ahead.

Here’s more from Savills:

Average rents in the C5W strengthened for a sixth consecutive quarter, growing by 2.2% QoQ and 6.7% YoY to JPY5,250 per sq m, and the C5W premium over the 23W increased marginally to 19.9% in Q4/2024. At the ward level, Chiyoda and Shibuya witnessed the largest quarterly rental growth of 3.1%. Average rents in Chuo and Minato saw moderate increments of 2.8% QoQ and 1.7% QoQ, while Shinjuku’s rents increased marginally by 0.1% QoQ.

Average rents in the South submarket climbed by 1.7% QoQ and 5.8% YoY to JPY4,452 per sq m. Meguro recorded the highest quarterly increase of 2.8%, while Setagaya, the strongest performer in the submarket in the previous quarter, saw the most modest gain of 0.2% QoQ. The Inner North submarket grew by 1.4% QoQ and 7.0% YoY, reaching JPY4,457 per sq m, with Toshima and Bunkyo’s average rents rising by 2.2% QoQ and 0.7% QoQ, respectively.

The Inner East submarket rose by 0.7% QoQ and 6.5% YoY to JPY4,197 per sq m. Koto saw the largest rental growth for the third consecutive quarter, increasing by 1.1% QoQ. Average rents in the West submarket increased by 2.3% QoQ and 4.8% YoY to JPY3,967 per sq m. Rental growth exceeded the 23W average across all three constituent wards, and Nerima achieved the largest quarterly gain of 2.9%.

Average rents in the Outer North submarket increased by 0.7% QoQ and 7.8% YoY to JPY3,808 per sq m. Rents in Itabashi increased by 1.4% QoQ, while Kita recorded a marginal 0.1% QoQ uptick. The Outer East submarket grew by 2.5% QoQ and 7.9% YoY to JPY3,598 per sq m. Among the constituent wards, Katsushika posted the highest rental growth of 3.8% QoQ, while Edogawa recorded the most moderate gain of 1.6% QoQ.