2020 Market Forecast for Expat Rental Properties in Tokyo

Poste date: Thursday, January 30, 2020

Expats Moving to Japan and the Tokyo Olympic Games

In an average year many expat families arrive in Japan to start their house hunting from June to August, so that their children can start their new life in Tokyo in sync with the start of the new school term (September) of their children’s international school. As the Tokyo Olympic Games will be held this summer, we highly recommend that expat families planning to arrive in Tokyo this year –to start their house hunting–choose a time not overlapping with the 2 weeks the Olympic Games are held.

During the Olympic Games weeks many people from various areas within and outside of Japan, including the athletes and people involved with the games, are expected to stay in Tokyo for the purpose of watching and reporting on the games. This means that the population of Tokyo is expected to increase drastically during this short period of time.

Starting from July, people involved with the games may begin to arrive in Tokyo. During the weeks of the Olympic Games (Jun. 24th – Aug. 9th) and until after the subsequent Paralympic Games (ending on September 6th), it is expected that many people will be continuously filling up serviced apartments and hotels throughout Tokyo to full occupancy and hotel charges are expected to soar.

In addition, due to an expected increase of traffic in Tokyo, the Japanese government is encouraging companies to start telecommuting or stagger their commuting times. Due to the inability to efficiently commute to and within Tokyo during the games, a lessor of a property may difficulty taking care of applicant visitors and real estate agents may have difficulty showing applicants around the perspective properties.

Usually in order for an expats’ children to start their new life in Japan in sync with the start of the new school term (September) of their international school, families may start a lease contract during mid to late August. However, this year we recommend that these families finish their school visits, house hunting, and prepare to start the application process for their desired home within June. We also recommend that expat couples, or those who are single, discuss their time of arrival in Tokyo–for a new post with their companies–with their companies based on the aforementioned situation occurring this year.

If your arrival in Japan is during the aforementioned period of the games and cannot be avoided, we highly recommend you find suitable accommodations as soon as possible. If you cannot find any within Tokyo, you may have to search in Tokyo’s surrounding suburbs.

Regarding the current market situation of rental apartments and houses, properties in areas that are popular with foreign families such as Hiroo and Azabu, have a continuously high occupancy ratio. In these areas vacant rooms and houses may become occupied quickly and negotiation of the conditions for the properties are difficult.

The amount of furnished serviced apartments are increasing, but their occupancy rate is currently high in Central Tokyo–even during times when the Olympic Games aren’t taking place–due to an increase of foreign visitors.

In Japan, April is the start of the fiscal year for companies and the start of the school year for universities. Japanese start house hunting actively from February to March during an average year due to personnel transfers or the relocation of students.

We would be pleased if the aforementioned information could be of helpful when deciding the time of your arrival and house hunting in Japan.

If you’ve planned your arrival in Tokyo from between this spring until fall, please contact us at PLAZA HOMES as early as possible.

Long-term market price of rent in Central Tokyo

Luxury rental apartments and houses for expats maintain a high level of monthly rent, and the vacant units or houses for families with children (3-4Bedrooms) are likely to be insufficient in Central Tokyo.

Area	Azabu, Hiroo, Roppongi, Aoyama, Omotesando
	Size (sqm)	Rent ( in 10,000 JPY units)
Apartments		Low	Mid	High
1 Bedroom	50	32	46	66
2 Bedrooms	80	48	80	100
3 Bedrooms	120	75	120	160
4 Bedrooms	200	130	170	230
5 Bedrooms	280	na	na	250
Houses		Low	Mid	High
3 Bedrooms	150	90	120	145
4 Bedrooms	200	120	175	250

Area	Meguro, Setagaya
	Size (sqm)	Rent ( in 10,000 JPY units)
Apartments		Low	Mid	High
1 Bedroom	50	27	36	48
2 Bedrooms	80	36	49	65
3 Bedrooms	120	55	70	90
4 Bedrooms	200	na	na	na
5 Bedrooms		na	na	na
Houses		Low	Mid	High
3 Bedrooms	150	75	85	100
4 Bedrooms	200	85	100	135

Area	Yoyogi, Ebisu, Daikanyama, Shibuya, Akasaka
	Size (sqm)	Rent ( in 10,000 JPY units)
Apartments		Low	Mid	High
1 Bedroom	50	28	43	50
2 Bedrooms	80	48	63	82
3 Bedrooms	120	65	90	120
4 Bedrooms	200	100	140	190
5 Bedrooms	250	120	165	220
Houses		Low	Mid	High
3 Bedrooms	150	85	95	140
4 Bedrooms	200	115	140	180

Area	Kachidoki, Toyosu, Ginza
	Size (sqm)	Rent ( in 10,000 JPY units)
Apartments		Low	Mid	High
1 Bedroom	50	25	34	40
2 Bedrooms	80	30	44	50
3 Bedrooms	120	57	70	85
4 Bedrooms	200	na	na	na
5 Bedrooms		na	na	na
Houses		Low	Mid	High
3 Bedrooms	150	na	na	na
4 Bedrooms	200	na	na	na