Tokyo residential occupancy rate hits 96.4% in Q3

It’s still below pre-pandemic levels but the occupancy rates are set to remain stable.

Occupancy rates rebounded in the Tokyo 23W this quarter reaching an average 96.4% according to Savills, following the slight contraction after the spring moving season. 

“Occupancy still slightly lags exceptionally high pre-pandemic figures. Overall, occupancy rates are high, and the capital is on a gradual growth trajectory,” the analyst said.

Here’s more from Savills:

Occupancy in the C5W has remained mostly flat, dipping 0.1ppts over the quarter to 95.9%. Meanwhile, the South, and the North & West saw occupancy rates increase in line with the 23W average. 

On the other hand, the East saw a large increment in occupancy rates, and has already recovered from the dip seen in Q2/2022. The occupancy rate improvements could have been attributed to Tokyo’s recent population growth, even after the moving season, due to the entry of foreign nationals. 

Overall, as the COVID-19 pandemic progresses towards an endemic state, occupancy rates look set to remain stable. Indeed, the recent influx of foreign residents resulted in net population growth and brought more demand to the market. 

That said, hybrid work is the norm at many companies, and it is still uncertain as to what extent people will be comfortable with returning to the 23W, especially among families and those looking for more space and a slower pace of life. Hence, future increases in occupancy are likely to be moderate in the 23W.