Get all the data you need about the real estate market in Tokyo
SUMMARY
We analyzed apartment rental yields in Tokyo, as of 2026, for residential apartment buyers, using the raw dataset provided and turning it into a practical yield guide for foreign individual investors.
This tracker is built to be updated regularly, so the numbers should be read as a current May 2026 Tokyo apartment yield snapshot rather than a permanent valuation.
The main signal is clear: Tokyo is not a high-yield market in the same way as cheaper emerging cities. Strong tenant demand exists, but high purchase prices compress the percentage return in the most prestigious neighborhoods.
Sumida / Kinshicho gives the strongest estimated income profile in the table, with studio apartments at 5.8% gross yield and 4.4% net yield. Ueno / Asakusa is close behind, with studios at 5.6% gross yield and 4.2% net yield.
Nakano, Toyosu / Ariake, Nishi-Shinjuku, Setagaya / Sangenjaya, and Kichijoji also look useful for buyers who want a better balance between entry price, rent, and livability.
The weakest pure-yield areas are Aoyama / Omotesando, Azabu / Hiroo, Akasaka / Roppongi, and parts of Ginza / Tsukiji. These addresses can be excellent places to own, but the rental income often does not fully justify the capital required.
Studios usually produce the best return for the lowest total investment in Tokyo. They benefit from deep single-renter demand, lower ticket sizes, and higher rent efficiency than larger apartments.
Two-bedroom apartments can command high monthly rent in Tokyo, especially in premium areas, but the tenant pool is narrower and purchase prices rise quickly. That usually weakens percentage yield.
For a beginner foreign buyer, the safest Tokyo apartment rental yield strategy is usually a well-located studio or compact 1-bedroom near a major station, not a large luxury unit in a prestige district.
The practical takeaway is that Sumida / Kinshicho, Ueno / Asakusa, Nakano, Toyosu / Ariake, and Kagurazaka / Iidabashi each offer different versions of the same trade-off: yield, tenant depth, station access, building quality, and resale liquidity.
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Neighborhoods and apartment rental yields in the 2026 Tokyo apartment market
This table compares apartment rental yields in Tokyo by neighborhood and apartment size, using the raw Tokyo dataset for May 2026.
For each area, the table shows estimated purchase price, estimated monthly rent, gross rental yield, and net rental yield for studios, 1-bedroom apartments, and 2-bedroom apartments.
The wider tracker also reviews annual owner costs, occupancy risk, likely time to rent, main renter demand, main investment risk, and rental investment profile. Finally, please note you'll find much more detailed data in our real estate pack about Tokyo.
| Neighborhood | Studio average purchase price | Studio average monthly rent | Studio gross rental yield | Studio net rental yield | 1-bedroom average purchase price | 1-bedroom average monthly rent | 1-bedroom gross rental yield | 1-bedroom net rental yield | 2-bedroom average purchase price | 2-bedroom average monthly rent | 2-bedroom gross rental yield | 2-bedroom net rental yield |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Akasaka / Roppongi | ¥63,700,000 | ¥189,000 | 3.6% | 2.3% | ¥98,000,000 | ¥280,000 | 3.4% | 2.2% | ¥142,600,000 | ¥403,000 | 3.4% | 2.1% |
| Aoyama / Omotesando | ¥68,900,000 | ¥194,000 | 3.4% | 2.1% | ¥106,000,000 | ¥288,000 | 3.3% | 2.0% | ¥154,200,000 | ¥415,000 | 3.2% | 2.0% |
| Azabu / Hiroo | ¥71,500,000 | ¥205,000 | 3.4% | 2.2% | ¥110,000,000 | ¥304,000 | 3.3% | 2.1% | ¥160,000,000 | ¥438,000 | 3.3% | 2.0% |
| Ebisu / Daikanyama | ¥54,600,000 | ¥176,000 | 3.9% | 2.6% | ¥84,000,000 | ¥260,000 | 3.7% | 2.5% | ¥122,200,000 | ¥374,000 | 3.7% | 2.4% |
| Ginza / Tsukiji | ¥61,100,000 | ¥184,000 | 3.6% | 2.4% | ¥94,000,000 | ¥272,000 | 3.5% | 2.2% | ¥136,800,000 | ¥392,000 | 3.4% | 2.2% |
| Kagurazaka / Iidabashi | ¥42,900,000 | ¥151,000 | 4.2% | 3.0% | ¥66,000,000 | ¥224,000 | 4.1% | 2.8% | ¥96,000,000 | ¥323,000 | 4.0% | 2.8% |
| Kichijoji | ¥31,200,000 | ¥116,000 | 4.5% | 3.1% | ¥48,000,000 | ¥172,000 | 4.3% | 2.9% | ¥69,800,000 | ¥248,000 | 4.3% | 2.9% |
| Meguro / Naka-meguro | ¥46,800,000 | ¥165,000 | 4.2% | 3.0% | ¥72,000,000 | ¥244,000 | 4.1% | 2.8% | ¥104,800,000 | ¥351,000 | 4.0% | 2.8% |
| Nakano | ¥29,900,000 | ¥127,000 | 5.1% | 3.8% | ¥46,000,000 | ¥188,000 | 4.9% | 3.6% | ¥66,900,000 | ¥271,000 | 4.9% | 3.6% |
| Nishi-Shinjuku | ¥40,300,000 | ¥154,000 | 4.6% | 3.3% | ¥62,000,000 | ¥228,000 | 4.4% | 3.2% | ¥90,200,000 | ¥328,000 | 4.4% | 3.1% |
| Setagaya / Sangenjaya | ¥33,800,000 | ¥130,000 | 4.6% | 3.3% | ¥52,000,000 | ¥192,000 | 4.4% | 3.1% | ¥75,700,000 | ¥276,000 | 4.4% | 3.0% |
| Shinagawa / Takanawa | ¥48,100,000 | ¥165,000 | 4.1% | 2.9% | ¥74,000,000 | ¥244,000 | 4.0% | 2.7% | ¥107,700,000 | ¥351,000 | 3.9% | 2.7% |
| Sumida / Kinshicho | ¥24,700,000 | ¥119,000 | 5.8% | 4.4% | ¥38,000,000 | ¥176,000 | 5.6% | 4.2% | ¥55,300,000 | ¥253,000 | 5.5% | 4.2% |
| Toyosu / Ariake | ¥33,800,000 | ¥140,000 | 5.0% | 3.7% | ¥52,000,000 | ¥208,000 | 4.8% | 3.5% | ¥75,700,000 | ¥300,000 | 4.8% | 3.5% |
| Ueno / Asakusa | ¥28,600,000 | ¥132,000 | 5.6% | 4.2% | ¥44,000,000 | ¥196,000 | 5.3% | 4.0% | ¥64,000,000 | ¥282,000 | 5.3% | 3.9% |
We have made this infographic to give you a quick and clear snapshot of the property market in Japan. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which neighborhoods offer the best net yield among areas people actually want to live in Tokyo?
The best net-yield neighborhoods among areas people actually want to live in Tokyo are Sumida / Kinshicho, Ueno / Asakusa, Nakano, and Toyosu / Ariake.
These neighborhoods stand out because the estimated rent is high enough to support the purchase price, while renter demand is still broad and practical.
Sumida / Kinshicho is the strongest yield area in the table. Studio apartments are estimated at 5.8% gross yield and 4.4% net yield, while 1-bedroom apartments are estimated at 5.6% gross yield and 4.2% net yield.
Ueno / Asakusa also screens well for apartment rental yields in Tokyo. Studios are estimated at 5.6% gross yield and 4.2% net yield, and 1-bedroom apartments are estimated at 5.3% gross yield and 4.0% net yield.
Nakano gives a good west-side compromise. A 1-bedroom apartment is estimated at ¥46.0 million, with ¥188,000 monthly rent and 3.6% net yield, which is much stronger than many central prestige areas.
Toyosu / Ariake is not the highest-yield area, but it is useful because newer towers, waterfront living, family demand, and modern amenities help support rent. For a beginner buyer, the practical takeaway is to compare yield with tenant depth, not yield alone.
Where can I find apartments with above-average yields and below-average entry prices in Tokyo?
The clearest Tokyo neighborhoods with above-average yields and below-average entry prices are Sumida / Kinshicho, Ueno / Asakusa, Nakano, and Kichijoji.
These areas are cheaper than Minato, Shibuya, Chiyoda, and the best-known lifestyle districts, but they still have real rental demand.
Sumida / Kinshicho is the best example. A studio apartment is estimated at ¥24.7 million and ¥119,000 monthly rent, giving 5.8% gross yield and 4.4% net yield.
Ueno / Asakusa has a similar income logic. A 1-bedroom apartment is estimated at ¥44.0 million and ¥196,000 monthly rent, which produces 5.3% gross yield and 4.0% net yield.
Nakano is useful because the entry price is still far below the prime central areas. The estimated studio price is ¥29.9 million, while estimated monthly rent is ¥127,000, producing 3.8% net yield.
Kichijoji offers a livable profile at a lower capital requirement than many central Tokyo neighborhoods. The risk is that foreign-buyer resale liquidity can be narrower than in the most internationally recognized wards.
Where does the rent level justify the purchase price most clearly in Tokyo?
The rent level most clearly justifies the purchase price in Sumida / Kinshicho, Ueno / Asakusa, Nakano, and Toyosu / Ariake.
These neighborhoods show the best rent-to-price relationship in the dataset, which is the core of a healthy apartment rental yield in Tokyo.
Sumida / Kinshicho gives the clearest signal. A studio at ¥24.7 million with ¥119,000 monthly rent creates an estimated 5.8% gross yield, which is the strongest gross figure in the table.
Ueno / Asakusa is also rational for income buyers. A 2-bedroom apartment is estimated at ¥64.0 million and ¥282,000 monthly rent, producing 5.3% gross yield and 3.9% net yield.
Toyosu / Ariake works for a different reason. Its 2-bedroom rent is estimated at ¥300,000 per month, and the purchase price is still far below Azabu / Hiroo or Aoyama / Omotesando for the same apartment size.
By contrast, Aoyama / Omotesando and Azabu / Hiroo can be wonderful ownership locations, but the rent-to-price relationship is thin. We have actually built the our real estate pack about Tokyo to make sure you won’t buy in the wrong area. Check it out.
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Where is the best place to buy if I want stable rental income rather than maximum yield in Tokyo?
The best Tokyo neighborhoods for stable rental income rather than maximum yield are Kagurazaka / Iidabashi, Meguro / Naka-meguro, Shinagawa / Takanawa, and Ebisu / Daikanyama.
These areas do not produce the highest estimated net rental yield in Tokyo, but they have deeper tenant demand, stronger daily livability, and better resale recognition.
Kagurazaka / Iidabashi is a stability play. Studios are estimated at 3.0% net yield, while 1-bedroom and 2-bedroom apartments are both estimated at 2.8% net yield.
Meguro / Naka-meguro has a similar profile. A 1-bedroom apartment is estimated at ¥72.0 million and ¥244,000 monthly rent, which gives 4.1% gross yield and 2.8% net yield.
Shinagawa / Takanawa has lower yield, with 1-bedroom apartments estimated at 2.7% net yield, but tenant demand is supported by business access, rail links, and strong name recognition.
Ebisu / Daikanyama is expensive, but it remains attractive for lifestyle renters. For a cautious foreign buyer, slightly lower yield can be acceptable when vacancy risk, tenant quality, and resale liquidity are stronger.
Which apartment type gives the best return for the lowest total investment in Tokyo?
The apartment type that gives the best return for the lowest total investment in Tokyo is usually the studio apartment.
Studios have the lowest purchase price, the broadest single-renter base, and the strongest estimated yield in almost every neighborhood in the table.
In Sumida / Kinshicho, the studio price is estimated at ¥24.7 million, compared with ¥38.0 million for a 1-bedroom and ¥55.3 million for a 2-bedroom. The studio also has the highest net yield, at 4.4%.
Nakano shows the same pattern. A studio is estimated at ¥29.9 million and 3.8% net yield, while a 1-bedroom costs ¥46.0 million and yields 3.6% net.
Tokyo studio demand is deep because single-person households, students, early-career professionals, relocated workers, and foreign renters often prioritize station access over space.
Two-bedroom apartments can still work, especially for families or corporate tenants, but the higher purchase price usually lowers the percentage return. We give you more details in the our real estate pack about Tokyo.
Which neighborhoods offer strong rental income with the lowest vacancy risk in Tokyo?
The Tokyo neighborhoods that combine strong rental income with lower vacancy risk are Ebisu / Daikanyama, Meguro / Naka-meguro, Kagurazaka / Iidabashi, Shinagawa / Takanawa, and selected parts of Akasaka / Roppongi.
These areas have strong rents because renters value location, lifestyle, access, and neighborhood reputation, not just because landlords ask for high prices.
Ebisu / Daikanyama has estimated 1-bedroom rent of ¥260,000 per month and 2-bedroom rent of ¥374,000 per month. The yield is not high, but the tenant base is usually deeper than in cheaper, more building-specific areas.
Meguro / Naka-meguro has estimated 1-bedroom rent of ¥244,000 per month and 2-bedroom rent of ¥351,000 per month. That rent level reflects lifestyle demand, transport access, and the appeal of the west-side Tokyo apartment market.
Kagurazaka / Iidabashi is more practical than flashy. The area can attract renters linked to central offices, universities, hospitals, and established residential streets.
The honest interpretation is that lower vacancy risk often costs you yield. Sumida / Kinshicho may show higher net yield, but Ebisu, Meguro, Kagurazaka, and Shinagawa can offer stronger tenant quality and easier resale understanding.
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.
Which areas look overpriced relative to their rental income in Tokyo?
The Tokyo areas that look most overpriced relative to rental income are Aoyama / Omotesando, Azabu / Hiroo, Akasaka / Roppongi, and parts of Ginza / Tsukiji.
These are excellent addresses, but the rental-yield case is weak because purchase prices absorb much of the rent.
Aoyama / Omotesando is the clearest example. A 1-bedroom apartment is estimated at ¥106.0 million and ¥288,000 monthly rent, producing only 3.3% gross yield and 2.0% net yield.
Azabu / Hiroo is similar. A 2-bedroom apartment is estimated at ¥160.0 million and ¥438,000 monthly rent, but the net yield is only 2.0%.
Akasaka / Roppongi can produce impressive monthly rent, with 2-bedroom apartments estimated at ¥403,000 per month. The problem is that the estimated purchase price is ¥142.6 million, which leaves only 2.1% net yield.
The trade-off is not bad neighborhood versus good neighborhood. It is rental income versus prestige, scarcity, liquidity, and long-term capital preservation.
Which neighborhoods should I avoid even if the rental yield looks attractive in Tokyo?
Beginner Tokyo rental investors should be careful with high-yield areas such as Sumida / Kinshicho, Ueno / Asakusa, Kichijoji, and outer or weaker parts of Nakano if the specific building is not strong.
The issue is not that these neighborhoods are bad. The issue is that a high yield can hide building risk, resale risk, older stock, station distance, or a narrower tenant pool.
Sumida / Kinshicho has the strongest studio net yield in the dataset at 4.4%. That number is attractive, but the investor still needs to check earthquake standard, management quality, reserve funds, and street-level livability.
Ueno / Asakusa has estimated 1-bedroom net yield of 4.0%. It can work well, but some buildings may be more exposed to tourism, older layouts, or streets that feel less residential.
Kichijoji has solid livability and estimated studio net yield of 3.1%, but it sits outside the 23 wards. That can narrow the resale audience for foreign buyers compared with Minato, Shibuya, or Shinjuku.
The practical rule is to avoid weak buildings, not necessarily entire neighborhoods. A high-yield Tokyo apartment is only attractive when the building, station access, tenant base, and maintenance history also make sense.
Which neighborhoods look risky even though the rental yield is high in Tokyo?
The Tokyo neighborhoods that can look risky despite high yield are Sumida / Kinshicho, Ueno / Asakusa, and Kichijoji.
They are not automatically risky, but they require more careful selection because the higher yield partly comes from lower purchase prices and less global prestige.
Sumida / Kinshicho shows the strongest income numbers, with 5.8% gross yield and 4.4% net yield for studios. The risk is that a cheap unit in the wrong building may not match the neighborhood average.
Ueno / Asakusa looks attractive across all apartment sizes, with net yields from 3.9% to 4.2%. The investor risk is buying into old stock, poor management, or a sub-location that depends too heavily on temporary demand.
Kichijoji is popular with local renters, but its yield story is different from central Tokyo. The area can be stable for tenants, yet foreign-buyer liquidity may be thinner than in better-known central wards.
Safer alternatives are Kagurazaka / Iidabashi and Meguro / Naka-meguro. Their estimated net yields are lower, but tenant demand is easier to understand and resale liquidity is usually clearer.
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What neighborhoods should I avoid when buying a rental apartment in Tokyo?
For beginner rental investors in Tokyo, the avoid list is not a full-neighborhood ban. It is a warning to avoid overpriced luxury yield traps and weak buildings in higher-yield areas.
Aoyama / Omotesando should usually be avoided for pure rental income. Estimated net yields are only 2.0% to 2.1%, which leaves little room for vacancy, repairs, or financing costs.
Azabu / Hiroo is also difficult for income investors. A 1-bedroom apartment is estimated at ¥110.0 million and ¥304,000 monthly rent, producing only 2.1% net yield.
Akasaka / Roppongi can attract corporate and expat tenants, but the numbers remain compressed. Studios are estimated at 2.3% net yield, while 2-bedroom apartments fall to 2.1% net yield.
In higher-yield areas such as Sumida / Kinshicho and Ueno / Asakusa, the avoid decision is more specific. Avoid long walks to stations, weak reserve funds, older earthquake-standard concerns, and layouts that do not match modern renter expectations.
The simple beginner rule is this: in Tokyo, avoid apartments where the only attractive number is the headline yield or the neighborhood prestige.
Which neighborhoods are seeing rental demand weaken, and why, in Tokyo?
The Tokyo neighborhoods where rental demand looks more fragile in the raw dataset are Bunkyo, Nakano, Toshima, and Shinagawa, based on the recent 1K listing movement referenced in the market notes.
This does not mean those areas are bad. It means the latest listing snapshot showed weaker month-to-month rent momentum, so investors should avoid assuming rents only move upward.
The dataset notes April 2026 1K rent decreases of 5.0% in Bunkyo, 4.5% in Nakano, 4.3% in Toshima, and 4.1% in Shinagawa. Those are meaningful short-term moves in a market where small apartments are usually liquid.
Nakano still looks attractive in this tracker because the rent-to-price ratio remains strong. The estimated studio net yield is 3.8%, and the estimated 1-bedroom net yield is 3.6%.
Shinagawa / Takanawa remains a stable area, but its yield is compressed. A 1-bedroom apartment is estimated at ¥74.0 million and ¥244,000 monthly rent, which gives only 2.7% net yield.
The practical recommendation is not to avoid these areas blindly. The better response is stricter purchase discipline, especially if recent rent momentum has softened while purchase prices remain high.
Which neighborhoods are seeing new developments that could create stronger rental demand in Tokyo?
The Tokyo neighborhoods where new development could support stronger rental demand are Shibuya-linked areas such as Ebisu, Shinagawa / Takanawa, Toyosu / Ariake, Ginza / Tsukiji, and Ueno / Asakusa.
The important distinction is that demand-creating development is not the same as new apartment supply. Offices, retail, transport, mixed-use projects, and tourism can deepen tenant demand, while too many similar apartments can increase landlord competition.
Ebisu / Daikanyama benefits from proximity to Shibuya demand and lifestyle rental depth. Studios are estimated at ¥176,000 monthly rent, while 1-bedroom apartments are estimated at ¥260,000 per month.
Shinagawa / Takanawa is a transport and business access play. Its estimated yields are not high, but the area remains useful for tenants who value rail connectivity, airport routes, and business convenience.
Toyosu / Ariake has a different demand base. Newer waterfront towers, family-friendly layouts, shopping, and planned urban growth support rents, with 2-bedroom apartments estimated at ¥300,000 per month.
Ueno / Asakusa benefits from transport, tourism, and east-side regeneration. The area can support high apartment rental yields in Tokyo, but building selection matters more than the neighborhood story.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Japan. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
Which neighborhoods have become less attractive for apartment investors over the last 12 months in Tokyo?
The Tokyo neighborhoods that have become less attractive for income investors are mainly Aoyama / Omotesando, Azabu / Hiroo, Akasaka / Roppongi, Shinagawa / Takanawa, and some central Shibuya-linked areas where purchase prices have moved faster than rents.
The problem is not weak demand. The problem is yield compression, which happens when the purchase price rises faster than achievable rent.
Aoyama / Omotesando is the clearest low-yield luxury example. A studio is estimated at ¥68.9 million and ¥194,000 monthly rent, producing only 2.1% net yield.
Azabu / Hiroo has strong rents but very high prices. A 2-bedroom apartment is estimated at ¥160.0 million and ¥438,000 monthly rent, but the net yield is only 2.0%.
Shinagawa / Takanawa remains investable for stability, but its estimated net yields are only 2.7% to 2.9%. That makes it more convincing for long-term liquidity than maximum rental income.
The practical conclusion is that these areas should not be avoided as places to live. They should be bought selectively by investors who accept lower yield in exchange for location quality, tenant quality, and possible capital preservation.
Which apartment types are becoming harder to rent in Tokyo, and in which neighborhoods?
The apartment type most likely to become harder to rent in Tokyo is the expensive 2-bedroom apartment in premium neighborhoods.
The issue is not that these units cannot rent. The issue is that the tenant pool becomes narrower once monthly rent moves above ¥400,000.
Azabu / Hiroo has estimated 2-bedroom rent of ¥438,000 per month, while Aoyama / Omotesando is estimated at ¥415,000 and Akasaka / Roppongi at ¥403,000. These are serious monthly budgets.
Those units need executive renters, expat families, corporate tenants, or high-income local households. If the unit is old, poorly managed, dark, or not close enough to the right station, leasing time can stretch.
Studios and 1-bedroom apartments remain more liquid because Tokyo has deep single-renter demand. In Sumida / Kinshicho, a studio at ¥119,000 monthly rent can appeal to a much wider renter base than a luxury 2-bedroom at more than ¥400,000.
The practical rule is to buy tenant depth, not just apartment size. Compact studios and 1-bedroom apartments near strong stations are usually easier for beginners than expensive 2-bedroom units in prestige areas.
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INSIGHTS
These insights are drawn from the Tokyo apartment rental yield dataset, with a focus on what a foreign individual buyer should understand before buying a residential apartment to rent out.
You’ll find even more insights in our our real estate pack about Tokyo.
- Sumida / Kinshicho studios show the strongest simple income profile in the Tokyo dataset. The estimated 4.4% net yield is not only the highest figure, it also comes at the lowest studio purchase price in the table.
- Ueno / Asakusa is the most convincing high-yield alternative to Sumida / Kinshicho. Its yields are strong across studios, 1-bedroom apartments, and 2-bedroom apartments, which suggests the rent-to-price relationship is not limited to one format.
- Tokyo studios usually outperform larger apartments because single renters pay efficiently for access. A small unit near a useful station can convert location value into rent more efficiently than a larger apartment.
- Two-bedroom apartments in premium Tokyo neighborhoods can earn impressive monthly rent, but the percentage yield is usually weak. The purchase price rises faster than the rent, especially in Azabu / Hiroo, Aoyama / Omotesando, and Akasaka / Roppongi.
- Nakano is one of the most balanced beginner-investor areas in the dataset. It offers better yields than premium central neighborhoods while keeping a strong west-side rental story.
- Toyosu / Ariake is not a pure maximum-yield play. It is useful because newer towers, waterfront amenities, and family demand make the rental case easier to understand.
- Kagurazaka / Iidabashi offers stability rather than maximum return. Its yields are moderate, but the area has practical demand from central workers, students, hospitals, and established residential streets.
- Meguro / Naka-meguro is a classic lower-yield, lower-anxiety rental market. The area is expensive, but tenant demand is supported by lifestyle value, transport, restaurants, and strong brand recognition.
- Shinagawa / Takanawa has good liquidity but compressed yield. That makes it better for buyers who care about transport access and resale confidence than for buyers chasing maximum income.
- Aoyama / Omotesando and Azabu / Hiroo are prestige markets first and yield markets second. The low net yields do not mean the areas are bad, but they do mean income buyers need very conservative expectations.
- Ginza / Tsukiji produces high rent, but the price base remains heavy. This is the recurring Tokyo lesson: expensive rent does not automatically mean a strong rental yield.
- Kichijoji is attractive for lifestyle renters but less global as an investment address. It can work for long-term rental demand, but foreign-buyer resale liquidity may be narrower than in central wards.
- Setagaya / Sangenjaya offers a practical middle-ground profile. It is not as globally recognized as Minato or Shibuya, but its entry price and rent balance are more forgiving.
- Nishi-Shinjuku works because renter demand is practical. Offices, transport, and central access support the rental case, while prices remain below the most prestigious lifestyle districts.
- Gross yield is not enough in Tokyo. Net yield matters more because management fees, repair reserves, vacancy, taxes, agent costs, and building-level maintenance can remove a meaningful share of income.
- The most important Tokyo risk is not always the neighborhood name. The specific building, station walk, earthquake standard, management association, reserve fund, sunlight, layout, and resale liquidity can change the real return.
- For foreign individual buyers, the best first Tokyo apartment is usually boring in a good way. A compact, well-managed studio or 1-bedroom near a strong station often beats a more glamorous but low-yield luxury unit.
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OUR METHODOLOGY TO BUILD THIS TRACKER
To estimate purchase price, monthly rent, and rental yield in different Tokyo neighborhoods, we built the dataset manually from the ground up by neighborhood and apartment type. For each area, we looked separately at studio apartments, 1-bedroom apartments, and 2-bedroom apartments, using comparable surface ranges where possible.
We did not reuse a third-party yield dataset. We manually researched current residential sale and rental listings across major Tokyo real estate platforms such as SUUMO, LIFULL HOME'S, and At Home.
For each segment, we collected comparable sale listings and comparable rental listings ourselves. Duplicate listings, unrealistic asking prices, luxury outliers, distressed assets, serviced-style offers, incomplete listings, and clearly non-comparable properties were removed before we estimated the final figures.
Sale prices were cleaned and normalized using location, apartment type, size, condition, listing quality, building age, and comparability. We used the median price as the main reference where possible, or the average only when the sample was clean enough to avoid distortion.
We built the rental side separately. For the same neighborhood and apartment type, we collected rental listings, removed outliers and non-comparable listings, and estimated a realistic monthly rent using the median rent where possible.
Purchase prices and rents were then matched by neighborhood and apartment type to estimate gross rental yield. The gross rental yield was calculated as: Gross rental yield = annual rent / estimated purchase price.
To estimate net yield, we avoided applying one flat discount across the whole Tokyo apartment market. The deduction was adjusted by neighborhood and apartment type, reflecting management fees, repair reserve fees, vacancy risk, maintenance, leasing costs, agent fees, taxes, insurance, small repairs, building costs, and other operating costs that can affect a real landlord.
This matters because different residential properties do not have the same cost profile. A small central studio, a newer tower apartment, an older 2-bedroom unit, and a family-oriented waterfront apartment can have very different service charges, vacancy exposure, repair needs, and tenant turnover.
Each estimate was assigned a confidence level. A sample of 30 to 40 comparable listings means higher confidence. A sample of 20 to 30 comparable listings is usable but less robust. Below 20 comparable listings means directional only, unless the comparable area was widened carefully.
These estimates are updated regularly and should be read as structured market estimates, not as guarantees of future rental income. Honesty, quality, and rigor are at the core of our work, and they are also what you will find in our real estate pack about Tokyo.
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