The 500.38sqm (5384 sqft) 1-bedroom penthouse in La Tour Daikanyama has an asking rent of 5,310,000 Yen/month and is the most expensive rental apartment in Tokyo.

According to a survey by ECA International, Tokyo is the most expensive city in the world to rent a 2-bedroom apartment, and the 2nd most expensive city in the world for 3-bedroom apartments.

Tokyo has also seen the biggest fall in rents in Asia. This continues the trend of year-on-year rental price decreases witnessed there since the onset of the global financial crisis in 2008.

Lee Quane, Regional Director of ECA International Asia explains that “assignee numbers in Tokyo are still lower than before the financial crisis”. This means there is less demand for rental property in expatriate areas, and rents in those areas have steadily fallen since then, dropping almost 5% in Yen terms. Further falls in international assignee numbers following the tsunami and subsequent nuclear disaster have continued to contribute to this trend.

“However, when the current strong Yen is factored in, rents in Tokyo are actually 5% higher in US dollar terms compared to the same time last year, despite the decrease. Effectively, the currency has increased by more than Tokyo landlords have lowered rents.”

ECA International collects data from rental agents and relocation companies. The rental prices were collected in September 2011 and have been converted into US dollars for ease of comparison using the September 2011 exchange rate. In September 2011 the average exchange rate was 77 Yen to the dollar. According to ECA, this would make the average 3-bedroom apartment approximately 727,650 Yen/month in Tokyo.

Tokyo residents will know that expatriate apartments can have some outrageous asking prices, but they do not reflect actual market conditions. Also, many of these high-priced apartments can be steeply negotiated down in price. In fact, the average advertised rent for a 3-bedroom apartment in Tokyo city as of February 2012 was 202,100 Yen/month (US$2,624 using the September exchange rate). In the expatriate area of Minato-ku, the average 3-bedroom had an advertised rent of 427,900 Yen/month (US$5,560).

According to REINS, the average monthly rent paid on an apartment between October and December, 2011 was:

  • 3,781 Yen/sqm in Minato-ku
  • 3,748 Yen/sqm in Shibuya-ku

 

The World’s most expensive locations to rent a 3-bedroom apartment according to ECA International:
(1) Hong Kong (US$11,813)
(2) Tokyo (US$9,450)
(3) Moscow
(4) New York
(5) London
(6) Caracas
(7) Geneva
(8) Bogota
(9) Singapore (US$5,570)
(10) Lagos

 

Sources:
Homes
REINS
“Singapore among world’s most expensive cities to rent property” ECA  International, February 20, 2012.

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