Here’s how Tokyo residential rents differ per unit size
Rents in small units that are 15 to 30 sqm in size rose by 1.6% in Q3.
Tokyo’s rental market is principally made up of compact single-occupier units, typically less than 45 sq m (13.6 tsubo) in size. According to a Savills report, such units can often make up as much as 75% or more of the 23W area’s rental listings.
“Unlike Western major global cities such as New York or London, house or apartment sharing does not form a major segment of the rental market. As a result, there is a large, stable market for small- to mid-sized units,” the report said.
Here’s more from Savills:
In Q3/2023, rents of all size bands in the C5W increased, albeit at different rates. Rents in the smallest 15-30 sq m size band increased moderately by 1.6% QoQ, recovering close to pre-pandemic peak levels. Meanwhile, the larger size bands saw mild increments, with the 30-45 sq m increasing by 0.2% QoQ and the 45-60 sq m band growing 0.4% QoQ.
Overall, the smaller 15-30 sq m size band, which typically houses single occupiers, appears to be recovering, which is in line with the overall rhetoric of a growing number of people, especially younger professionals, returning to central areas to be closer to offices and more vibrant city life.
Net-migration into the C5W has recovered to levels slightly greater than those seen in pre-pandemic times. Indeed, the gradual but steady push back towards working in the office has encouraged more people to move closer to central areas.
At the same time, many companies appear to keep some flexible workstyles, meaning that larger units that could better accommodate such arrangements would still be preferred among residents. As such, the premium for larger units in the C5W will likely continue due to the limited stock of such units.