"Following the strong rental growth in the previous quarter, the 23W market posted a marginal quarterly rental correction, while the C5W experienced moderate rental growth in Q2/2024. This spring moving season brought a large net increment of over 65,000 people to the Tokyo 23W, while increasing office attendance and recent robust wage growth should also contribute to strong and stable rental demand."

"The population of the 23W has hit new highs and looks to continue increasing, especially in more central wards. At the same time, the composition of the population is evolving, and looks to gradually comprise a larger proportion of foreign nationals and younger migrants, and this trend is likely to support rental markets. Furthermore, the rental market in the 23W looks set to perform well due to elevated prices and the limited supply of for-sale units."

"The branded residence segment has long been a niche one in Japan, and stock has been extremely limited. That said, changing preferences among domestic UHNWIs and greater interest in Japan as a global tourist destination has boosted the profile of the sector. A slew of branded residence developments located in central urban areas have been receiving significant interest, and the segment appears to be going from strength to strength."