Tokyo residential rents up 8.2% in Q3

Find out how each of the submarkets performed during the quarter.

Growth in the Tokyo residential leasing market in Q3/2025 has been steady according to a recent Savills report, with 23W average rents increasing by 1.0% QoQ to JPY4,630 per sq m, contributing to a solid 8.2% YoY increase.

“Most constituent wards observed an increase in rents by the quarter, and all wards witnessed rental growth on an annual basis,” the report said.

Here’s more from Savills:

Average rents in the C5W market strengthened by 1.1% QoQ and 9.1% YoY to JPY5,605 per sq m. Chuo saw the greatest quarterly rental growth at 3.7%, followed by Minato with a moderate increase of 2.2%, while Shibuya and Shinjuku saw modest quarterly growths of 1.7% and 1.0% respectively. Chiyoda experienced a contraction of 2.9% QoQ, cooling from its robust growth from the previous quarter, although maintaining on an upward trend, increasing by 8.3% YoY.

The South submarket observed steady rental increases of 1.2% QoQ and 8.2% YoY to JPY4,735 per sq m over Q3/2025. A closer look shows that Setagaya experienced the greatest growth over the quarter at 2.7%. Shinagawa and Meguro followed suit with more modest growth of 1.2% QoQ and 0.9% QoQ respectively. Ota saw a slight rental contraction of 0.2% QoQ, though it has experienced a noticeable growth over the year at 7.4%.

The Inner North submarket recorded modest rental growth of 0.2% QoQ and 8.5% YoY to JPY4,769 per sq m. Toshima saw average rents increase by 0.9% QoQ, although Bunkyo saw rents dip by 0.5% QoQ. Still, both wards’ yearly performance appears to be solid, increasing by 10.5% and 6.7%, respectively, remaining in line with other markets in the 23W.

The Inner East submarket experienced an average rental growth of 1.6% QoQ and 8.4% YoY to JPY4,517 per sq m in Q3/2025. Taito enjoyed the largest gain of 2.2% QoQ, followed by Sumida and Koto at 1.6% QoQ and 0.9% QoQ respectively. The West submarket recorded an increase of 1.1% QoQ and 9.2% YoY to JPY4,234 per sq m. Suginami topped rental growth at 1.5% QoQ, with Nerima trailing closely at 1.4% QoQ while Nakano saw a more modest increase of 0.6% QoQ, easing slightly after a strong previous quarter.

The Outer North submarket posted modest rental improvement of 0.9% QoQ and 4.9% YoY to JPY3,967 per sq m. Rental growth in Itabashi was 2.3% QoQ, while average rents in Kita contracted slightly by 0.5% QoQ. The Outer East submarket recorded rental rise of 2.3% QoQ and 8.6% YoY to JPY3,812 per sq m. Edogawa achieved solid quarterly rental gain of 3.6%, followed in succession by Arakawa, Adachi, and Katsushika at increases of 2.1%, 2.0%, and 1.6% QoQ, respectively.