Strong demographics and stable economic fundamentals are helping underpin positive performance in the Tokyo market.

• Average rents* in the Tokyo 23 wards (23W) increased by 0.9% quarter-on-quarter (QoQ) and 8.4% year-on-year (YoY), reaching JPY4,586 per sq m. Most wards saw moderate quarterly rental growth even after the robust gains seen in Q1/2025, while annual rental growth was notable across all constituent wards.
• Average rents in the central five wards (C5W) grew by 0.4% QoQ and 9.5% YoY to JPY5,545 per sq m.
• The C5W rental premium over the 23W average fell by 0.3 percentage points (ppts) QoQ to 21.2%.
• Chiyoda recorded the largest rental growth of 4.6% QoQ, while Shibuya rents increased slightly by 0.5% QoQ. On the other hand, the rest of the C5W constituents posted modest quarterly rental corrections, which should just be temporal.
• The rental gap between larger and smaller units appears to remain in a narrow position, with recent well-balanced supply.
• Average occupancy rates in the 23W increased by 0.4ppts QoQ to 96.5% while the C5W decreased by 0.3ppts over the quarter at 95.8%.

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