The use of fixed-term leases is spreading across Tokyo’s 23 wards, increasing the likelihood that tenants will face upward pressure on rents each time they re-contract. Some observers also point to a rise in fixed-term lease offerings, particularly for high-end properties.
As overseas investors make large-scale acquisitions of rental housing, the use of fixed-term leases is spreading across Tokyo’s 23 wards. The share of property listings involving fixed-term leases rose from 5.9% in 2023 to 9.5% in 2025.
Under a fixed-term lease, the contract ends when its term expires, and the new rent agreed upon when the parties re-contract is more likely to reflect market rates. As a result, tenants are increasingly likely to face a choice each time they re-contract: accept a rent increase or move out.
Offerings of fixed-term leases are increasing sharply, particularly for high-end properties such as centrally located tower condominiums owned by corporations, as well as properties aimed at families. Some observers say that, in the current rental market, the focus is on setting rents when new contracts are signed.
One factor behind the trend is that private-sector rents remained relatively low, rising 0.7% year on year as of July 2026. While rents for existing tenants have changed little, asking rents for new listings have continued to reach record highs.