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What is the average rent in Tokyo?

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Authored by the expert who managed and guided the team behind the Japan Property Pack

property investment Tokyo

Yes, the analysis of Tokyo's property market is included in our pack

Tokyo's rental market in September 2025 shows strong growth across all property types, with studio apartments ranging from ¥95,000 to ¥160,000 monthly and family apartments reaching ¥400,000+ in premium central wards. The market demonstrates exceptional stability with vacancy rates below 3% and rental yields averaging 3.2-4.2% across the city, making it one of the most attractive global investment destinations.

Central Tokyo commands premium prices with districts like Minato and Chiyoda averaging ¥300,000+ for one-bedroom apartments, while suburban areas offer more affordable options starting at ¥100,000. Foreign residents, young professionals, and families drive demand across different segments, creating diverse investment opportunities from high-yield suburban properties to stable central district investments.

If you want to go deeper, you can check our pack of documents related to the real estate market in Japan, based on reliable facts and data, not opinions or rumors.

How this content was created 🔎📝

At BambooRoutes, we explore the Japanese real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Tokyo, Osaka, and Yokohama. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What's the average monthly rent in Tokyo right now for different property types?

As of September 2025, Tokyo's rental market shows clear price segmentation across property types and locations.

Studio apartments (1K/1R) range from ¥95,000 to ¥160,000 monthly, with central wards like Minato and Chiyoda commanding the higher end of this range. Suburban options in areas like Adachi, Katsushika, and Arakawa offer more affordable alternatives between ¥70,000 and ¥100,000 monthly.

One-bedroom apartments (1LDK) typically cost ¥140,000 to ¥310,000 monthly across Tokyo. Central business districts including Minato, Chiyoda, and Shibuya consistently price above ¥200,000, while suburban and outer wards provide options as low as ¥100,000 to ¥160,000 monthly.

Family apartments (2LDK to 3LDK) and detached homes range from ¥180,000 to over ¥400,000 monthly. Premium districts like Minato, Chiyoda, and Shibuya frequently command ¥300,000 to ¥400,000 or more, while family-friendly outer wards such as Setagaya, Nerima, and Adachi offer options between ¥130,000 and ¥230,000.

It's something we develop in our Japan property pack.

How do rental prices vary across different neighborhoods and wards in Tokyo?

Tokyo's 23 special wards demonstrate significant rental price variation based on location, accessibility, and prestige.

Ward Average 1LDK Rent Characteristics
Chiyoda ¥310,000 Imperial Palace area, government district, highest prestige
Minato ¥300,000 Embassy district, luxury shopping, international community
Shibuya ¥280,000 Entertainment hub, youth culture, excellent transport links
Shinjuku ¥250,000 Major business district, nightlife, transportation center
Setagaya ¥230,000 Residential, family-friendly, spacious properties
Nerima ¥180,000 Suburban feel, good value, family-oriented
Adachi ¥160,000 Most affordable, improving infrastructure, emerging area

What is the average rent per square meter depending on property size?

Tokyo's rent per square meter varies significantly between central and suburban locations as of September 2025.

Central Tokyo's 23 special wards average ¥4,187 to ¥4,332 per square meter monthly. Prime districts including Minato, Chiyoda, and Shibuya command ¥5,250 or more per square meter, reflecting their premium locations and amenities.

Outer wards and suburban areas typically range from ¥3,000 to ¥4,000 per square meter monthly. These areas offer better value for families and investors seeking higher rental yields while maintaining reasonable access to central Tokyo.

Property size affects per-square-meter pricing, with smaller units generally commanding higher rates per square meter due to fixed costs and higher demand for compact living spaces. Studios and one-bedroom apartments often exceed ¥5,000 per square meter in central locations, while larger family apartments may range from ¥3,500 to ¥4,500 per square meter in the same areas.

What is the typical total cost including management fees and other charges?

Tokyo rental costs extend well beyond the advertised monthly rent, requiring careful budget planning for tenants.

Cost Category Typical Amount Frequency
Management/Maintenance Fee ¥5,000-¥10,000 Monthly
Utilities (gas, water, electricity) ¥10,000-¥20,000 Monthly
Internet Service ¥3,000-¥5,000 (if not included) Monthly
Key Money (reikin) 0-2 months' rent One-time
Security Deposit (shikikin) 1 month's rent One-time (refundable)
Agency Fee 1 month's rent + tax One-time
Cleaning/Lock/Disinfection Fee ¥10,000-¥22,000 One-time
Guarantor Company Fee 0.5-1 month's rent Annual
Fire Insurance ¥18,000-¥20,000 Annual

What taxes should property owners expect to pay on rental income?

Tokyo property owners face multiple tax obligations on rental income that significantly impact net returns.

Income tax applies progressive rates from 5% to 45% of net rental income, plus a 2.1% reconstruction surcharge continuing through 2037. Property owners must calculate taxable income after deducting legitimate expenses including management fees, maintenance costs, and depreciation.

Resident tax (inhabitant tax) adds 10% to the tax burden, split between 4% prefectural tax and 6% municipal tax. This tax applies to all residents regardless of citizenship status and is based on the previous year's income.

Enterprise tax may apply at rates of 3.5% to 7% depending on location and income level, particularly for self-employed individuals or companies engaged in rental business. Property owners should also budget for fixed asset tax on the property itself and fire insurance requirements.

Professional tax advice is essential for optimizing deductions and ensuring compliance with Japanese tax regulations.

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How do mortgage costs compare with rental income potential?

Tokyo's real estate market in September 2025 offers favorable conditions for leveraged property investment.

Mortgage interest rates remain historically low in Japan, creating positive yield spreads between rental returns (averaging 3.2% to 4.2%) and borrowing costs. This gap makes leveraged investment attractive for qualified buyers, particularly as rental prices continue trending upward across most Tokyo wards.

Central Tokyo properties typically generate lower yields but offer greater price stability and tenant demand consistency. Investors prioritizing cash flow often focus on outer wards and suburban areas where rental yields can reach 5% to 6%, providing healthier margins above mortgage payments.

Foreign buyers should factor in additional lending requirements and potentially higher interest rates compared to Japanese nationals. Professional consultation with Japanese mortgage specialists is essential for understanding qualification criteria and optimizing financing structures.

What are the most attractive property types and areas for different rental strategies?

Tokyo's rental market offers distinct opportunities for long-term and short-term rental strategies as of September 2025.

Long-term rental investments perform best with studios and family homes in outer wards including Adachi, Setagaya, and Nerima. These areas generate rental yields up to 5% to 6% while maintaining stable tenant demand from families, students, and budget-conscious professionals.

Short-term rental properties achieve optimal performance in centrally-located apartments near major tourist attractions and business districts. Areas like Shibuya, Asakusa, and Roppongi can generate yields up to 5.95%, though operators must navigate stricter regulatory requirements and higher operational complexity.

Mixed-use strategies work well in transitional neighborhoods where both residential and tourist demand exists. Properties near major train stations and universities offer flexibility to pivot between rental strategies based on market conditions.

It's something we develop in our Japan property pack.

Can you give examples of actual monthly rental prices across Tokyo?

Current rental prices across Tokyo demonstrate clear geographic and property type patterns as of September 2025.

In central Tokyo, a 40-square-meter 1LDK apartment in Chiyoda ward typically rents for ¥310,000 monthly, while the same property in Minato ward commands ¥300,000. Shibuya ward offers similar properties at ¥280,000, reflecting its younger demographic and entertainment focus.

Suburban examples show significant savings: Setagaya ward offers 1LDK apartments at ¥230,000 monthly, providing spacious family-friendly environments. Adachi ward, Tokyo's most affordable option, prices similar properties at ¥160,000 monthly while maintaining good transport connections to central areas.

Studio apartments in central Minato ward start at ¥160,000 monthly, while suburban Katsushika ward offers studios from ¥70,000. Family properties (3LDK) in premium Minato locations reach ¥400,000 or higher, compared to ¥180,000 for equivalent properties in outer residential wards.

These price differentials create diverse investment opportunities depending on target tenant demographics and return objectives.

What tenant profiles are most common in Tokyo right now?

Tokyo's rental market serves four primary tenant segments with distinct preferences and requirements.

  1. Foreign residents: Major segment concentrated in central wards, particularly professionals working for international companies and expatriate families seeking furnished or semi-furnished accommodations
  2. Students: Clustered near university districts in Bunkyo, Shinjuku, and Toshima, typically seeking studios or small apartments with budget-friendly rents and good transport access
  3. Young professionals: Dominate central business districts like Minato and Shibuya, preferring modern apartments with convenient commutes and vibrant nightlife access
  4. Japanese families: Concentrate in outer family-friendly wards such as Setagaya, Nerima, and Katsushika, seeking larger apartments or houses with good schools and parks nearby
  5. Remote workers: Emerging segment seeking quality home office space, driving demand for larger apartments in both central and suburban locations
infographics rental yields citiesTokyo

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Japan versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

What are the current vacancy rates and their impact on investment returns?

Tokyo maintains exceptionally low vacancy rates across all property types and locations as of September 2025.

Vacancy rates remain below 3% across Tokyo's 23 wards, with most apartment buildings maintaining occupancy rates above 96%. This market stability creates consistently high rental income potential for property investors and demonstrates strong underlying demand fundamentals.

Central wards typically experience even lower vacancy rates due to high demand from international tenants and young professionals. Suburban areas maintain competitive occupancy levels while offering higher rental yields, creating attractive investment opportunities for cash flow-focused investors.

Low vacancy rates support rental price growth and provide investment security, but also indicate limited immediate availability for new tenants. Property investors benefit from stable income streams, while tenants face competitive rental markets requiring quick decision-making and strong applications.

This market dynamic reinforces Tokyo's position as a stable, high-demand rental market with consistent returns for well-positioned properties.

What are the typical rental yields today and future forecasts?

Tokyo rental yields demonstrate regional variation and positive growth trends as of September 2025.

Time Period Average Gross Yield Market Conditions
2020 ~4.3% Higher yields due to lower property prices
2024 3.44% (central) / 4.33% (Japan-wide) Yields declining as property prices rose
2025 (Current) 3.2-4.2% (Tokyo average) Premium locations: 2-3%; Suburbs: 5-6%
1-5 Year Forecast Stabilizing with 1-3% annual rent growth Emerging outer wards showing yield improvements
10 Year Forecast Continued central growth, selective suburban demand Urbanization supporting central rents, aging population affecting large family units

How does Tokyo compare with other global cities for rental yields?

Tokyo demonstrates competitive advantages compared to other major global real estate markets as of September 2025.

Tokyo central districts average ¥5,250 per square meter monthly with gross yields of 3.2% to 4.2%, significantly outperforming expensive global capitals. New York's Manhattan commands ¥140.8 per square meter with yields of 2% to 3% and much higher vacancy rates around 15%.

London's prime central areas reach ¥206.3 per square meter with similar yields of 2% to 3% but approximately 8% vacancy rates. Hong Kong represents the most expensive option at ¥258.7 per square meter with declining yields of 2% to 3% and 11% vacancy rates.

Tokyo's unique combination of affordable pricing relative to global peers, strong rental yields, and exceptionally low vacancy rates positions it as one of the most attractive global investment destinations. The market offers better affordability than most world capitals while maintaining robust returns and high occupancy rates.

It's something we develop in our Japan property pack.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

  1. Tokyo Travel - Rental Market Analysis
  2. Tokyo International Meetup - 2025 Rent Guide
  3. 3D Universal - Tokyo Ward Rental Costs
  4. Eaves Japan - Single Family Rental Market
  5. Patience Realty - Tokyo Condo Rent Analysis
  6. Global Property Guide - Japan Price History
  7. Housing Japan - Tokyo Rent Increases
  8. Dovetail - Japan Apartment Rental Costs
  9. Global Property Guide - Japan Rental Yields
  10. Reuters - Tokyo Property Boom Analysis