Strong growth experienced in the Tokyo 23W, with further improvements likely in 2024.

• Average rents in the Tokyo 23 wards (23W) increased notably by 4.1% quarter-on-quarter (QoQ) and 5.2% year-on-year (YoY) to JPY4,237 per sq m.
• Rents in the central five wards (C5W) increased in tandem by 2.2% QoQ and 4.4% YoY to JPY5,027 per sq m.
• The C5W rental premium over the 23W average decreased moderately to 18.6%.
• In the C5W, Chuo and Shinjuku saw the most significant quarterly increases of 3.8% QoQ and 2.8% QoQ, respectively. Overall, yearly growth among all wards in the C5W has been strong.
• Average rents for smaller units in the C5W in the 15-30 sq m size band increased at the largest rate, by 2.3% QoQ.
• Average occupancy rates in the 23W increased by 0.2 percentage points (ppts) QoQ to 97.2%, and rose marginally by 0.1ppts on an annual basis. Meanwhile, occupancy in the C5W remained unchanged QoQ at 96.9%.
• In Greater Tokyo, record-high condominium prices have forced many residents to seek more affordable options in the rental market. This has also likely contributed to the strong rental increments seen over the quarter.