Rents in the 23W have increased in anticipation of the peak spring moving season in a post-pandemic era.

• Average rents in Tokyo’s 23 wards (23W) recovered 2.4% QoQ and 0.9% YoY to JPY4,027 per sq m, reversing most of the temporary correction in the last quarter.
• Rents in the central five wards (C5W) moved in tandem with the broader market, increasing 1.8% QoQ and 0.7% YoY.
• The C5W premium is at 19.6%, and remains slightly higher than pre-pandemic times.
• Adachi experienced the largest quarterly increment of 4.6%, while Suginami saw the largest correction of 1.6%, although still remaining higher than Q3/2022 levels.
• The 45-60 sq m size band maintains a notable premium, although smaller units saw some recovery this quarter.
• The average occupancy rate in the 23W rose by 0.6ppts QoQ and 0.2ppts YoY to 97.1%, while the C5W increased 0.8ppts to 97.0%.
• Ultra-luxury rental residences should see greater attention given their growing popularity, especially amongst the relatively younger new rich, as well as the very limited stock of such units.