Rents and occupancy rates have improved, while Tokyo continues to see its population decline modestly.
- This quarter, rents in the Tokyo 23 wards (23W) improved 0.9% QoQ to JPY3,963 per sq m, although they have still decreased 0.9% YoY.
- Likewise, mid-market rents in the central five wards (C5W) have also increased 1.1% QoQ to JPY4,713 per sq m, but faced an annual decline of 1.4% YoY.
- The C5W premium has inched up 0.3 percentage points (ppts) QoQ to 18.2%, although the premium is still lower than that of pre-pandemic times.
- Most wards have posted some recovery this quarter, with Shinjuku posting the largest gain on a quarterly basis of 3.0%. On an annual basis, Arakawa came on top, growing at 4.4% YoY.
- In the C5W, average rents for all unit sizes have seen some rental increments this quarter.
- The average occupancy rate in the 23W increased 0.3ppts from the previous quarter to 96.1%. The C5W saw an even larger recovery of 0.7ppts to 95.6%.
- The population decline of the 23W has continued into Q4/2021. In comparison, major regional cities Osaka, Nagoya, and Fukuoka have not seen population changes as noticeable as the 23W.