Positive migration supports Tokyo rental demand despite occupancy easing: analyst

Tokyo attracted more than 54,000 new residents in Q2.

Tokyo's 23 wards recorded a net population inflow of more than 54,000 people between April and June 2026, helping underpin residential rental demand despite a slight easing in occupancy levels, according to Savills.

The property consultancy said the increase comprised approximately 39,000 Japanese nationals and 15,000 foreign nationals. The central five wards also remained in positive territory, recording a net inflow of nearly 3,800 people, including around 2,600 Japanese and 1,200 foreign residents.

Savills noted that while most submarkets recorded lower net migration than the same period a year earlier, population inflows remained positive across Tokyo and peripheral areas continued to perform relatively well.

The Outer East submarket led net migration with almost 15,000 new residents, followed by the South with roughly 13,000, the West with around 9,300 and the Outer North with about 8,100. The Inner North and Inner East submarkets recorded net inflows of around 3,000 and 2,800 people, respectively.

Savills said the moderation in migration likely reflects a normalisation following the strong post-pandemic inflows of recent years.

Meanwhile, occupancy across the Tokyo 23 wards eased to 96.2% in the second quarter, down 0.6 percentage points from the previous quarter and 0.3 percentage points year-on-year. Occupancy in the central five wards also softened to 95.6%.

According to Savills, the modest decline is consistent with seasonal patterns following the spring moving season, while occupancy remains elevated. The consultancy expects ongoing domestic and international migration, particularly among foreign residents with a higher propensity to rent, to continue supporting leasing demand in the coming months.