The short answer
Using two official datasets (average private rent per m² from the 2023 Housing and Land Survey, and the median closed price per m² of second-hand condos from MLIT), the gross rental yield in 2023 was about 3.4–3.9% in central Tokyo (five central wards), 3.7–4.9% in central Kyoto and 4.9–5.4% in Fukuoka’s Chuo and Hakata wards. Measured against 2025 prices with the same 2023 rents, central Tokyo falls to 2.4–3.4%, because prices rose faster than the rent statistics are updated.
These are area averages for orientation, not a forecast and not the yield of any particular property. Net yield after fees and taxes is lower; our worked example below comes to about 1.5% on a 50 m² Minato condo before income tax and before any vacancy.
Gross rental yield by ward
Rent is the average monthly rent per m² of private rented housing in each ward as of 1 October 2023 (existing leases, not asking rents; excludes building fees). Price is the median closed price per m² of second-hand condos reported by brokers to MLIT in the same ward. Gross yield = rent × 12 ÷ price. Wards with fewer than 20 closed sales in a year are left out; Osaka is missing because the rent table we extracted has only the city total.
| Ward | Rent ¥/m²/month (Oct 2023) | Price ¥/m² (2023 median) | Gross yield 2023 | Price ¥/m² (2025 median) | Gross yield at 2025 prices |
|---|---|---|---|---|---|
| Chiyoda 千代田区 Tokyo | ¥3,807 | ¥1,333,333 261 sales | 3.4% | ¥1,714,286 357 sales | 2.7% |
| Chuo 中央区 Tokyo | ¥3,698 | ¥1,258,571 1,164 sales | 3.5% | ¥1,818,182 1,421 sales | 2.4% |
| Minato 港区 Tokyo | ¥4,504 | ¥1,444,444 1,268 sales | 3.7% | ¥1,882,353 1,557 sales | 2.9% |
| Shinjuku 新宿区 Tokyo | ¥3,486 | ¥1,076,923 975 sales | 3.9% | ¥1,225,000 1,298 sales | 3.4% |
| Shibuya 渋谷区 Tokyo | ¥3,622 | ¥1,288,889 693 sales | 3.4% | ¥1,571,429 907 sales | 2.8% |
| Kamigyo 上京区 Kyoto | ¥1,981 | ¥487,500 119 sales | 4.9% | ¥475,714 142 sales | 5.0% |
| Nakagyo 中京区 Kyoto | ¥2,131 | ¥700,000 269 sales | 3.7% | ¥747,727 352 sales | 3.4% |
| Higashiyama 東山区 Kyoto | ¥1,772 | ¥493,333 32 sales | 4.3% | ¥533,333 47 sales | 4.0% |
| Shimogyo 下京区 Kyoto | ¥2,061 | ¥579,048 162 sales | 4.3% | ¥616,026 240 sales | 4.0% |
| Fukuoka Chuo 福岡市中央区 Fukuoka | ¥1,813 | ¥440,000 627 sales | 4.9% | ¥520,000 799 sales | 4.2% |
| Fukuoka Hakata 福岡市博多区 Fukuoka | ¥1,622 | ¥362,500 495 sales | 5.4% | ¥450,000 496 sales | 4.3% |
For comparison, the national average private rent was ¥1,509/m²/month and the Tokyo 23-ward average ¥2,760. The 2025 column uses the same 2023 rent, so it shows how far yields have compressed on price alone; if rents also rose, the true 2025 figure is somewhat higher. Price pages: Tokyo, Kyoto, Fukuoka.
Within central Tokyo in 2023, Shinjuku had the highest gross yield (3.9%) and Shibuya the lowest (3.4%). The pattern is the usual one: the more expensive the ward per m², the lower the yield.
Where the numbers come from
- Rent: Statistics Bureau of Japan (Ministry of Internal Affairs and Communications), 2023 Housing and Land Survey, basic tabulation on dwellings and households, Table 122-4 (monthly rent per m² of total floor area by tenure, by municipality), reference date 1 October 2023. We downloaded the e-Stat Excel file (statInfId 000040210062) on 27 September 2026 and keep the extracted values in
data/rent-by-ward.json. Rent of ¥0 is excluded and the figure does not include common-service or management charges. - Prices: MLIT Real Estate Information Library, transaction-price data for second-hand condos (中古マンション等), closed prices reported by brokers only (we do not mix in the buyer-survey prices), per-m² median by ward and calendar year. The same files drive our price pages.
- What this is not: asking rents from listing portals, guaranteed rents from sublease companies, or the yield of a specific unit. Average rents include long-standing leases at older rents, so a newly let unit may rent higher; prices include small older units, so a new-build will cost more per m². Treat the table as a ranking of areas, not a return you can expect.
Gross vs net yield: a 50 m² Minato example
Gross yield ignores everything the owner pays. A net (or NOI) yield deducts the running costs and, ideally, counts the purchase costs in the denominator. Here is the arithmetic for a 50 m² second-hand condo in Minato at the 2025 median price per m², let on a normal long-term lease and bought for cash:
| Price (¥1,882,353/m² × 50 m²) | ¥94,117,650 |
| Rent per year (¥4,504/m² × 50 m² × 12) | ¥2,702,400 |
| Letting agent, 5% of rent (assumption) | −¥135,120 |
| Building management fee + repair reserve, ¥25,000/month (assumption; see management fees) | −¥300,000 |
| Fixed asset tax + city planning tax (our calculator; see property tax for foreigners) | −¥737,700 |
| Net operating income | ¥1,529,580 |
| Purchase costs (broker fee, acquisition and registration taxes, stamp duty; see cost of buying) | ¥5,920,982 |
| Gross yield = rent ÷ price | 2.87% |
| Net yield = NOI ÷ (price + purchase costs) | 1.53% |
Not yet deducted: vacancy and re-letting costs, repairs inside the unit, insurance, and Japanese income tax on the rent. If you live outside Japan and the tenant is a company (or anyone other than an individual renting it as their own home), the tenant must withhold 20.42% of each rent payment; you then file a Japanese return through a tax agent and settle the actual tax. See the owner checklist.
Why advertised yields are higher
- Brochures use asking rent or a sublease company’s guaranteed rent, both of which tend to sit above the average rent in the official survey.
- They quote gross yield. On the Minato example above, gross and net differ by roughly 1.3 percentage points before income tax.
- High headline yields (8% and up) usually come with something that explains them: a remote location, a wooden building near the end of its life, a very small unit, leasehold land, or a sitting tenant at a rent that cannot be raised.
- Yields move with prices. Central Tokyo prices rose sharply in 2024–25 (price history), which is why the 2025 column is lower than 2023.
FAQ
What is the rental yield in Tokyo?
On official data (2023 average private rent per m² divided by the 2023 median closed condo price per m²), the gross yield in the five central wards was about 3.4–3.9%. Against 2025 prices it is about 2.4–3.4%. Net yield after fees and taxes is lower.
Which Tokyo ward has the highest rental yield?
Among the five central wards in 2023, Shinjuku (3.9%) was highest and Shibuya (3.4%) lowest. We have not downloaded closed-price data for the other 18 wards, so we do not estimate them.
Is the rental yield in Japan higher than in Hong Kong or Singapore?
Central Tokyo gross yields of roughly 3–4% on 2023 data are in the same band as many large cities; Fukuoka and parts of Kyoto are higher. A fair comparison needs the same method (average rent of existing leases over closed prices) in both places, which we have not done here.
What is the difference between gross and net yield?
Gross yield is annual rent divided by price. Net yield deducts running costs (letting agent, building fees, property taxes) and, in our version, adds purchase costs to the price. In the Minato example gross is 2.9% and net 1.5% before income tax and vacancy.
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Sources
- Statistics Bureau of Japan, 2023 Housing and Land Survey (令和5年住宅・土地統計調査), basic tabulation on dwellings and households, Table 122-4 monthly rent per m² of total floor area by tenure, municipalities (e-Stat statInfId 000040210062): e-stat.go.jp file list, Excel download. Reference date 1 October 2023; downloaded 27 September 2026 (checked 7 October 2026)
- MLIT (Ministry of Land, Infrastructure, Transport and Tourism), Real Estate Information Library, transaction prices (closed prices reported by brokers), second-hand condos by ward, 2023 and 2025: reinfolib.mlit.go.jp. Our aggregation method is described on about.
- National Tax Agency, No.2884 withholding on payments to non-residents (rent 20.42%; none when an individual rents for their own or a relative's home): nta.go.jp (checked 7 October 2026)
- Property tax in the example: our tax calculator (fixed asset tax 1.4% and city planning tax 0.3% of assessed value with the residential-land reliefs; sources on property tax for foreigners). Building fees and letting-agent fee are assumptions, marked as such.
Last reviewed: 7 October 2026. Rent statistics are from October 2023 and are updated by the government every five years; prices are annual medians and move faster. Yields are area averages for orientation only.
Disclaimer. General information, not tax, legal or investment advice. Japan House Prices is not a real estate broker (宅地建物取引業者), a law firm or a tax adviser. Nothing here is a projection of income or a recommendation to buy. We may receive a referral fee from the broker; you pay nothing to us.