Renewed population growth in Tokyo has resulted in rents in the 23 wards increasing by 8.0% to a record high of 4,152 Yen/sqm in 2023. Average rents are now 30% higher than they were in 2014.

Rising property prices are also causing a growing number of would-be buyers to turn to the rental market instead, adding extra pressure on the demand side. 

All major urban centers surveyed by Tokyo Kantei saw annual rental price growth in 2023, although some have seen growth at a higher pace than others. Tokyo’s 23 wards saw the highest year-on-year increase of 8.0%, followed by Saitama City (+7.6%) and Kobe City (+7.4%). Osaka City saw a 3.9% increase after a 7.7% increase in 2022.

The data provided by Tokyo Kantei is based on the advertised rent of condominium-type apartments recorded in Tokyo Kantei’s database and is limited to family-type apartments (excluding apartments under 30 sqm in size, office and retail space).

Source: Tokyo Kantei, January 17, 2023.