Rental growth remains on an uptrend supported by steady net migration amid shifting momentum.

• Average rents* in the Tokyo 23 wards (23W) increased by 1.0% quarter-on-quarter (QoQ) and 8.2% year-on-year (YoY), reaching JPY4,630 per sq m. Most wards saw moderate quarterly rental growth while annual rental growth was notable all around.
• Average rents in the central five wards (C5W) grew by 1.1% QoQ and 9.1% YoY to JPY5,605 per sq m.
• The C5W rental premium over the 23W average held steady at 21.2% over the quarter.
• Chuo recorded the largest rental growth of 3.7% QoQ, while Chiyoda rents saw a correction of 2.9% QoQ. The rest of the C5W constituents experienced modest rental growth of between 1.0% and 2.2% QoQ.
• The larger 45-60 sq m size band maintained its premium over the smaller and medium size bands, recording a 1.2% QoQ increase. The medium 30-45 sq m size band posted the largest gain at 2.4% QoQ, while the smaller 15-30 sq m size band observed the slightest rental increase at 0.9% QoQ.
• Average occupancy rates in the 23W decreased by 0.4 percentage points (ppts) QoQ to 96.1% and the C5W saw a similar decrease of 0.3ppts over the quarter at 95.5%.

*These are reference figures. Please refer to the Note on page two of the report for further information.