Rental growth continues its positive momentum supported by shifting market fundamentals.
- Average rents* in the Tokyo 23 wards (23W) increased by 0.2% quarter-on-quarter (QoQ) and 7.1% year-on-year (YoY), reaching JPY4,639 per sq m. Most wards saw moderate quarterly rental growth while annual rental growth was notable in all wards.
- Average rents in the central five wards (C5W) grew by 2.1% QoQ and 9.0% YoY to JPY5,722 per sq m.
- The C5W rental premium over the 23W average rose by 0.5 percentage points (ppts) to 21.7% over the quarter.
- Minato recorded the largest rental growth of 6.7% QoQ. The rest of the C5W constituents experienced rental growth of between 0.2% and 1.3% QoQ.
- Within the C5W, the larger 45-60 sq m size band maintained its premium over the smaller units, recording a 2.8% QoQ increase. The medium 30-45 sq m size band posted a notable gain of 2.0% QoQ, while the smaller 15-30 sq m size band observed a slight rental increase of 0.8% QoQ.
- Average occupancy rates in the 23W rose by 0.1ppts QoQ to 96.2% in Q4/2025 and the C5W saw an increase of 0.5ppts over the quarter at 96.0%.
*These are reference figures. Please refer to the Note on page two of the report for further information.