Recent research report about residential rent in Tokyo from Leasing Management Consulting Co.,  a leading research company in Japan.

LMC Press Release

Summary for Tokyo central 5 wards as at the end of October 2011

Of the data collected for mansions in Tokyo central 5 wards (Chuo Ward, Minato Ward, Shibuya Ward, Shinjuku Ward, and Chiyoda Ward) as of the end of October 2011 (mansion type buildings completed after Oct 2001 with the construction of RC and SRC), the rental unit price per tsubo has shown either a flat rate or a decline, especially for Minato Ward and Shibuya Ward, a significant decrease in rental rate is recorded. Key money also dropped for all 4 wards except Minato Ward.

 

 

 

 

 

 

 

 

 

Average unit price per tsubo (graph 1)

Of the average rental unit price per tsubo in the main 5 wards, the rate in Minato Ward and Shibuya Ward has decreased over 200yen compared to the previous month. It was the lowest figure since January 2010. Moreover, the unit rate per tsubo in Chiyoda Ward which has recorded an increase this year continued to drop since August. It returned to more or less the same level as it was in October 2010.

At the end of September a decrease in supply of units was recorded in all area. However it tends to increase in October and the level was raised close to the level in August.

Average key money (graph 2)

Average key money dropped for all 4 wards except Minato Ward. The decline was especially significant in Shibuya Ward and Chiyoda Ward. In these wards, the number of single type and DINK (double income no kids) type properties which required no key money increased. Besides, entering the second busy season (from the end of August), it is expected to have more unoccupied rooms and severe negotiation between tenants and owners.

Graph 1: Changes in Average unit price per tsubo

Graph 2: Changes in Average key money

 

 

 

 

 

 

 

Current rental market situation

Just one month to go and this year will be over, it is the very last month for real estate agencies to boost up sales. More real estate agencies make use of website as means to attract customers. Leasing strategies are also required for customers to check out room vacancy and other information.

Data provide by Leasing Managing Consulting Co.
http://www.lmc-c.co.jp/

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