The peak moving season brought fewer new residents to the 23W than previous years.

• Rents in the Tokyo 23 wards (23W) saw a mild decline of 2.0% quarter-on-quarter (QoQ) and 4.0% year-on-year (YoY) to JPY3,964 per sq m in Q2/2021.
• Average mid-market rents in the central five wards (C5W) have continued their descent and are currently at JPY4,670 per sq m – a fall of 1.6% QoQ and 5.8% YoY.
• The C5W premium has marginally increased to 17.6%, up 0.2 percentage points (ppts) from the last quarter.
• At the ward level, only a few areas posted positive growth on a quarterly basis. Here, Toshima in the Inner North marked the strongest growth this quarter with a modest gain of 0.9%. On an annual basis, Katsushika took the crown, with rents rising by 5.7%.
• In the C5W, average rents for units in the 15-30 sq m size band have seen a correction this quarter and currently remain the least expensive size band in a complete reversal of the historic trend.
• The average occupancy rate in the 23W decreased by 0.7ppts to 95.4%. The C5W, meanwhile, also saw a decline with the rate contracting by 0.9ppts to 94.2%.
• Notable demographic changes have taken place in Tokyo since the pandemic began, with the 23W population seeing a material decline. In contrast, western regions have seen a rise in their populations.