The average monthly rent of a condo-style apartment in Tokyo’s 23 wards saw a slight month-on-month increase of 0.2% in April. The average rent has risen 5.8% from April 2019 to 3,855 Yen per square meter. Rents are now up approximately 29.4% from the bottom seen in late 2012.
Most of the rental growth has been in relatively new construction under 10 years old. The market price for rentals in older buildings, however, has remained relatively flat.
Rent is typically higher in newly-built housing, and tends to depreciate as the building ages and becomes out-of-date. If a lot of new construction hits the market, it can pull up the average rent in that region and skew the numbers.
Yokohama City saw rents jump 1.0% from the previous month and 11.0% from last year thanks to a large share of new rental housing. Nagoya City was the worst performer, with April seeing a year-on-year drop of 4.0%.
Source: Tokyo Kantei, May 14, 2020.
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