March 10, 2020
Episode 2 - Average rental prices in Tokyo ~ How much do Tokyo residents pay for rent?

In the previous article, we talked about the attractiveness of investing in Tokyo’s property market that relates to its growing population and households. Does it somehow sound appealing to you? Despite the fact that Japan is experiencing a declining population, total population and the number of households in the center of Tokyo are actually on the rise and is also forecasted to grow continuously.

If only looking at total population or households, other countries with large growing population like India might look more favorable in the future. Yet, we should not miss out on decisive factors that significantly influence investment decisions. As a matter of fact, investment decisions always depend upon key factor like the return of capital gains and income gains. For instance, if one aims to generate an income stream, the purchase price and market rent play the crucial roles in decision making. So, what is the latest rent for condominiums located in the center of Tokyo? On average, it is 3,149 yen/sq. meter and therefore the monthly rent is approximately 105,366 yen/month for a 33.46 sq. meter (average size condos sold in Tokyo center) condo.

Now, let’s take a closer look at the top 5 most expensive residential districts (ku) in Tokyo

The above graph is plotted by International Interface based on data drawn from REINS database as of March 6, 2020.
Sources: REINS  "Monthly Market Watch Summary Report January 2020"













1. Minato-ku (where Tokyo tower is located) with an average rent of almost up to 200,000 yen/month

Given that the average starting salary for a university graduate in Japan is only 240,000 yen/month, the Minato-ku is definitely considered a wealthy area in Tokyo.

2. Chiyoda-ku (where the Tokyo Imperial Palace is located)

3. Chuo-ku (where one of the leading business districts in Tokyo that includes the headquarters of many listed companies resides)

4. Shibuya-ku (a well- known tourist area where the most famous scramble crossing is located)

5. Shinjuku-ku (where Tokyo Metropolitan Government exists)


The above only shows the average value while actual property’s rent price is affected by many factors such as the location (e.g. distance from a nearby station), building age & condition, earthquake resistant construction, management costs and taxes etc. Taxes, in particular, is the category that we have received many inquiries about from foreign investors due to its complex nature.

In the next episode, we will continue to discuss other influencing factors/data behind your investment decisions.



REINS – Monthly Market Watch Summary Report <January 2020>, United Nations data booklet 2018, Keidanren; Federation of Economic Organizations - March 2019 graduates’ starting salary survey results overview


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Neither International Interface nor its affiliated companies make any warranties or claims on the implied accuracy of the information contained herein.