Tokyo Rental Yield by Ward: 2026 Data and Investment Analysis
Yield is the starting point for every Tokyo real estate investment decision. But “Tokyo yields” covers an enormous range — a studio in Minato-ku yields very differently from a comparable unit in Adachi-ku, and the relationship between yield, vacancy, and capital appreciation varies dramatically by ward. This guide presents actual 2026 market data across Tokyo’s 23 wards, broken down by unit type.
Written by a licensed real estate agent (宅建士) based in Tokyo. Yield figures are based on transaction and listing data current to early 2026. Individual properties vary — use these as a reference framework, not a guarantee.
How to Read Yield Figures
Gross yield = Annual rent ÷ Purchase price × 100. This is the headline number you see in listings and what is used throughout this guide.
Net yield = (Annual rent − Annual costs) ÷ Purchase price × 100. Typical deductions from gross: management fee 5–8%, property taxes ~1.7% of assessed value, insurance ~0.3%, vacancy allowance 5–8%, and maintenance/repairs ~1–2% annually. In practice, net yield is typically 1.5–2.5 percentage points below gross yield.
A gross yield of 5.5% in central Tokyo typically nets to 3.0–4.0% after all costs — still competitive with many global cities, and without the currency-hedging costs that push returns down further in some markets.
Tokyo 23 Wards: Gross Yield by Area (2026)
Inner Central Wards (都心3区)
| Ward | Studio / 1K price range | Monthly rent | Gross yield | Notes |
|---|---|---|---|---|
| Minato-ku (港区) | ¥35–70M | ¥110,000–¥200,000 | 3.0–4.5% | Lowest yields, highest capital growth potential |
| Chiyoda-ku (千代田区) | ¥35–65M | ¥110,000–¥180,000 | 3.0–4.0% | Limited residential stock; strong corporate demand |
| Chuo-ku (中央区) | ¥25–55M | ¥90,000–¥160,000 | 3.5–4.5% | Ginza, Tsukishima; growing residential appeal |
High-Demand Residential Wards
| Ward | Studio / 1K price range | Monthly rent | Gross yield | Notes |
|---|---|---|---|---|
| Shibuya-ku (渋谷区) | ¥28–55M | ¥100,000–¥170,000 | 3.5–4.5% | Young professional demand; high liquidity |
| Shinjuku-ku (新宿区) | ¥20–40M | ¥80,000–¥140,000 | 4.0–5.5% | Diverse tenant pool; strong demand near station |
| Bunkyo-ku (文京区) | ¥18–35M | ¥75,000–¥120,000 | 4.5–5.5% | University area demand; stable, low vacancy |
| Meguro-ku (目黒区) | ¥22–40M | ¥85,000–¥140,000 | 4.0–5.0% | Affluent residential; family and single demand mix |
| Shinagawa-ku (品川区) | ¥18–38M | ¥75,000–¥130,000 | 4.5–5.5% | Shinkansen access drives corporate tenant demand |
Mid-Ring Wards — The Investor Sweet Spot
| Ward | Studio / 1K price range | Monthly rent | Gross yield | Notes |
|---|---|---|---|---|
| Koto-ku (江東区) | ¥14–28M | ¥65,000–¥100,000 | 5.0–6.5% | Toyosu, Shinonome; strong infrastructure growth |
| Sumida-ku (墨田区) | ¥13–25M | ¥60,000–¥95,000 | 5.0–6.5% | Affordable with good transport links |
| Kita-ku (北区) | ¥12–22M | ¥58,000–¥90,000 | 5.5–7.0% | Improving transport; value play |
| Toshima-ku (豊島区) | ¥14–26M | ¥65,000–¥100,000 | 5.0–6.5% | Ikebukuro area; strong rental demand |
| Itabashi-ku (板橋区) | ¥10–20M | ¥55,000–¥85,000 | 5.5–7.0% | Higher yield, longer commute to centre |
Outer Wards — High Yield, Higher Risk
| Ward | Studio / 1K price range | Monthly rent | Gross yield | Notes |
|---|---|---|---|---|
| Adachi-ku (足立区) | ¥8–16M | ¥50,000–¥75,000 | 6.0–8.0% | Highest yields; higher vacancy risk, longer commutes |
| Edogawa-ku (江戸川区) | ¥9–17M | ¥52,000–¥78,000 | 6.0–7.5% | Family-oriented; less investor liquidity |
| Nerima-ku (練馬区) | ¥9–18M | ¥53,000–¥80,000 | 6.0–7.5% | Residential feel; limited exit options for investors |
| Ota-ku (大田区) | ¥12–22M | ¥60,000–¥90,000 | 5.5–6.5% | Haneda access premium; mixed residential/industrial |
Family-Size Units (2LDK–3LDK): Yield Comparison
Larger units command lower gross yields but benefit from longer tenancy periods and lower vacancy. Typical gross yields for 2LDK–3LDK units (50–80 sqm) by area:
| Area | Price Range (2–3LDK) | Gross Yield |
|---|---|---|
| Minato / Shibuya / Chiyoda | ¥80–200M | 2.5–3.5% |
| Shinjuku / Bunkyo / Shinagawa | ¥45–90M | 3.0–4.0% |
| Koto / Sumida / Kita | ¥30–60M | 4.0–5.0% |
| Outer wards | ¥20–40M | 4.5–6.0% |
Yield vs. Capital Growth: The Trade-Off
Higher-yield outer wards tend to show lower or flat capital appreciation. Inner wards with lower yields have shown strong capital growth over the past decade — some central Tokyo condominiums have doubled in value since 2015. The question is which you are optimising for:
- Cash flow investor: Focus on mid-ring wards (Koto, Sumida, Bunkyo, Shinagawa) for the best balance of yield, vacancy risk, and liquidity.
- Capital growth investor: Inner wards (Minato, Shibuya, Chiyoda) have historically delivered the strongest appreciation — at the cost of lower current income.
- Balanced approach: Post-2000 buildings within 10 minutes of a major station in mid-ring wards typically offer both reasonable yield (5–6%) and acceptable exit liquidity.
What Affects Yield Beyond Location
- Station proximity: Each minute of additional walk time from the nearest major station reduces both achievable rent and resale value. Properties within 5 minutes command a clear premium.
- Building age: Post-2000 buildings command higher rents and lower vacancy. Pre-1981 buildings are harder to let and harder to resell.
- Floor level: Higher floors (especially with views) achieve 10–20% rent premiums over identical lower-floor units in the same building.
- Unit size: Very small studios (under 20 sqm) have a limited tenant pool and higher vacancy risk. 25–35 sqm units have the broadest appeal.
- Management quality: Well-managed buildings with attentive management associations hold value better and attract better tenants.
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