Tokyo residential rents continue to rise in Q2 | Real Estate Asia
, Japan

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.

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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.

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