Rents and occupancy rates have improved, and may be on the road to recovery.
- This quarter, rents in the Tokyo 23 wards (23W) improved 0.7% QoQ to JPY3,992 per sq m, although they have still decreased 1.3% YoY.
- Mid-market rents in the central five wards (C5W) have also increased 1.5% QoQ and 0.7% YoY to JPY4,784 per sq m.
- The C5W premium has inched up 0.9 percentage points (ppts) QoQ to 19.8%, surpassing the premium seen before the pandemic.
- Most wards have exhibited some recovery once again this quarter, with Edogawa posting the largest gain on a quarterly basis of 5.1%. On an annual basis, Toshima came on top, growing 4.9% 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 0.7ppts from the previous quarter to 96.8%. The C5W also saw a notable recovery of 0.6ppts to 96.2%.
- Prices of for-sale condominium have reached record-highs in Greater Tokyo. Some people will be priced out and stay in the rental market.