
Tokyo residential rents continue to rise in Q2
Rents in 23W and C5W grew by 8.4% and 9.5% YoY, respectively.
According to a Savills report, the Tokyo residential leasing market saw further growth in Q2/2025, with average rents in the 23W increasing by 0.9% QoQ to JPY4,586 per sq m, translating to an impressive annual increment of 8.4%. A majority of constituent wards enjoyed quarterly rental growth, while the entire market experienced annual growth.
“The C5W market saw average rents increase by 0.4% QoQ and 9.5% YoY to JPY5,545 per sq m, a modest increment relative to the previous robust quarter,” the report said.
Here’s more from Savills:
Chiyoda experienced the greatest QoQ rental increment at 4.6%, while average rents in Shibuya increased by 0.5% QoQ. On the other hand, Minato, Shinjuku, and Chuo wards saw moderate quarterly rental contractions at 0.4%, 0.6%, and 2.3% respectively. That said, this appears to be a typical annual cycle.
Overall, strong annual rental growth has been observed, with some asset managers appearing to prioritise strong rental growth over achieving full vacancy soon. As such, some wards have observed a notable increase in available units over the quarter, which may raise some concerns regarding occupancy performance, although this concern appears to be short-lived.
In the South submarket, average rents increased moderately by 1.8% QoQ and 8.6% YoY to JPY4,680 per sq m in Q2/2025. Among its constituent wards, Shinagawa experienced the greatest quarterly growth at 2.3%, followed by Setagaya at 2.2%. Meguro and Ota wards grew at 1.5% QoQ and 1.2% QoQ, respectively.
The Inner North submarket recorded rental growth of 2.5% QoQ and 10.5% YoY to JPY4,761 per sq m. Average rents in Toshima rose by 3.6% QoQ, while average rents in Bunkyo increased by 1.5% QoQ. The Inner East submarket recorded average rental growth of 0.9% QoQ and 8.4% YoY to JPY4,447 per sq m in Q2/2025. Sumida’s rental growth was the largest among the constituents at 1.9% QoQ, while Taito and Koto also saw quarterly rental growth at 0.6% and 0.4%, respectively.
The West submarket recorded the joint highest quarterly rental growth at 2.9% to JPY4,186 per sq m, translating to an annual increase of 8.1%. Quarterly rental growth in Nakano reached 5.7%, the largest in the Tokyo 23W, while Nerima and Suginami recorded rental growth of 1.7% QoQ and 1.1% QoQ, respectively.
The Outer North submarket recorded modest rental growth of 0.4% QoQ and 6.4% YoY to JPY3,933 per sq m. Average rents in Kita increased by 0.5% QoQ, while increasing by 0.4% QoQ in Itabashi. The Outer East submarket demonstrated its continued popularity, with rental growth of 2.9% QoQ and 6.8% YoY to JPY3,725 per sq m. Arakawa was the best performer in the quarter, with quarterly growth of 4.4%. Katsushika, Edogawa, and Adachi also saw modest rental growth of 2.4% QoQ, 2.4% QoQ, and 2.3% QoQ, respectively.