Despite rental growth slowing over the quarter, annual growth remains robust in both the 23W and the C5W.

• Average mid-market asking rents in the Tokyo 23 wards (23W) stood at JPY4,045 per sq m at the end of Q3/2019, up 0.7% QoQ and 6.9% YoY.
• Average asking rents in the central five wards (C5W) were JPY4,748 per sq m at the end of Q3/2019, down 0.6% QoQ but up 4.9% YoY.
• The C5W’s premium over the 23W average fell to around 17%, while discounts for the other submarkets also narrowed over the quarter.
• All submarkets recorded higher rents apart from the C5W as lofty rental values in the submarket may have weighed on demand.
• Itabashi in the Outer North was the star performer this quarter. The ward witnessed the highest rate of quarterly growth, as well as annual growth, in the 23W as an increasing number of new units, commanding higher rents, were listed.
• Smaller apartments continue to dominate the market, with rents in the 23W reaching a high of JPY4,042 per sq m. Listings for the largest apartments remain relatively sparse.