Tokyo residential rents rise 3.3% as outer wards lead growth

Central Tokyo rents grew for the 11th consecutive quarter in Q1.

Tokyo’s mid-market residential leasing sector sustained its upward trajectory in Q1 2026, with average rents across the Tokyo 23 wards (23W) rising 1.3% quarter-on-quarter and 3.3% year-on-year to JPY4,698 per sq m, according to Savills.

Savills noted that rental growth was broad-based, with most wards recording quarterly increases and all wards posting annual gains. In central Tokyo, the central five wards (C5W) extended their growth streak to 11 consecutive quarters, with rents increasing 0.5% QoQ and 4.1% YoY to JPY5,751 per sq m.

Within the C5W, performance was mixed. Savills reported that Minato saw a 2.4% QoQ correction after strong gains previously, but remained the top annual performer with rents up 6.1% YoY. Shibuya and Chuo recorded moderate quarterly increases of 3.3% and 1.6%, respectively, while Shinjuku and Chiyoda posted modest growth.

Across non-central areas, rental momentum was more pronounced. The Inner North submarket grew 1.1% QoQ and 6.5% YoY to JPY4,948 per sq m, while the South submarket rose 1.8% QoQ and 6.7% YoY to JPY4,902 per sq m. Savills highlighted Ota as a standout performer, posting 3.1% QoQ growth for a second consecutive quarter, alongside strong gains in Shinagawa and Setagaya.

The Inner East submarket recorded a 2.1% QoQ increase and 5.2% YoY growth, supported by firm rental gains in Koto and Sumida. Meanwhile, the West submarket rose 1.5% QoQ and 6.7% YoY, led by a rebound in Suginami.

Outer submarkets led quarterly growth. Savills said the Outer North saw the strongest increase at 3.1% QoQ, while the Outer East rose 2.1% QoQ and posted the highest annual growth of 8.6% YoY. Katsushika and Edogawa were key drivers of this momentum, recording notable quarterly gains.

Savills added that the continued strength in outer wards reflects growing demand for relatively affordable rental options, even as central Tokyo markets maintain steady, if more moderate, growth.