In March, average apartment rents in Tokyo, Kanagawa, Saitama and Chiba all saw a year-on-year increase due to both a continued increase in the share of newer apartments commanding higher rents as well as being the peak moving season. 

Leasing activity is busiest during March as tenants seek to secure housing before the start of work or schooling on April 1. Landlords, especially those with relatively newly-built apartments, tend to be quite bold with the pricing of vacant units during this time, pulling up the average rents. 

In Tokyo’s 23 wards, the average monthly rent reached 4,053 Yen/sqm, up 0.7% from the previous month and up 4.2% from last year. This was the 6th month in a row to see an increase and has been the 3rd month in a row to set a historic high. Price increases were more evident in new construction, while older buildings saw little-to-no change in rents. Inflation and shrinking disposable incomes are putting downward pressure on older apartment buildings as tenants in this sector seek to minimize living costs. 

Source: Tokyo Kantei, April 13, 2023.