Advertised apartment rents in Tokyo have been on a noticeable increase since around mid-2022, but it’s the larger apartments that have been seeing the highest rate of rental growth.
In January, advertised rents on apartments over 30 sqm in size reached the highest level since January 2015, according to AtHome’s rental index. Apartments in the 30 ~ 50 sqm range increased for the past 14 consecutive months and are now 23% higher than they were in 2015. The 50 ~ 70 sqm apartments have increased for the past 3 months and are now 36.7% higher than in 2015, showing the highest rate of rental growth of all apartment sizes.
Meanwhile, single-occupant housing under 30 sqm has only increased by a modest 12.4% over the past 8 years and has only just recovered to pricing seen in early 2020.
Much of this rental growth is driven by the rising price of purchasing an apartment in Tokyo. The average asking price of a 70 sqm apartment (excl. brand new construction) across Tokyo’s 23 wards reached 71.85 million Yen in January, according to Tokyo Kantei. This represents a 63.2% increase since January of 2015. In Tokyo’s central 6 wards, prices have increased by 79.6% over the same period. Would-be homebuyers, priced out of the market, are increasingly turning to the rental market instead.
Sources:
Tokyo Kantei, February 21, 2024.
AtHome, February 27, 2024.
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