Tokyo residential occupancy rate increases to 96.8% in Q1

This represents an increase of 0.6 percentage points from the previous quarter.

Occupancy rates across Tokyo’s 23 wards (23W) edged higher in Q1 2026, rising 0.6 percentage points quarter-on-quarter to 96.8%, according to Savills.

Savills reported that occupancy remained stable year-on-year, while the central five wards (C5W) also recorded gains, increasing 0.4 percentage points both quarter-on-quarter and annually to 96.4%. Despite the uptick, occupancy levels in both the 23W and C5W remain slightly below pre-pandemic averages.

The firm attributed improving occupancy to a gradual shift back toward office-based work. Data from the Tokyo Metropolitan Government shows that 40.1% of companies offered remote work arrangements in February 2026, down from 48.4% a year earlier, indicating a continued return-to-office trend.

Savills noted that this shift is expected to support rental demand, particularly in central locations, as professionals increasingly seek housing closer to their workplaces.

Looking ahead, stable demographic fundamentals and the upcoming spring moving season are expected to underpin healthy occupancy levels. In addition, rising condominium prices are likely to push more households toward the rental market, further supporting leasing demand, Savills said.