Executive Summary
- Tokyo remains one of the most resilient rental markets globally, but performance differs sharply by station rather than by ward.
- In 2025, the most investable stations combine stable tenant demand, walkability, and layout-driven GRM efficiency.
- Across Tokyo-Insights datasets, older 1R and 1K stock consistently shows GRM in the 120 to 140 range in undervalued micro-markets, while premium 2LDK units maintain gross yields around 4.8 percent.
Key Metrics for 2025
The analysis in this article is grounded in the same data engine that powers Tokyo-Insights tools. A few reference points for 2025:
- GRM for older 1R in Nakano (around 40 years, 10 minutes walk): approximately 124.
- GRM for older 1R in Sasazuka (around 42 years, 4 minutes walk): approximately 124.
- Gross yield for 2LDK units in Gotanda: around 4.8 percent.
- Gross yield for 2LDK units in Edogawabashi: around 4.8 percent.
- Gross yield for 1K units in Otsuka: around 5.4 percent.
- Median net yield across the 23 wards: around 6.38 percent.
These figures are not forecasts; they are indicative snapshots of how specific stations and layouts behave in the current market.
Why Stations Matter More than Wards
Tokyo's residential market is deep, stable, and liquid. But unlike many other global cities, ward-level averages hide more than they reveal. Two stations within the same ward can show very different:
- GRM levels for the same layout and age profile
- Rent resilience during slower leasing seasons
- Yield profiles across 1R, 1K, 1LDK and 2LDK stock
- Sensitivity to walking distance from the station
- Liquidity when you eventually resell the asset
For serious investors, this leads to a simple rule: invest in stations, not wards. Analyze the micro-market defined by layout, walking distance, and tenant profile, rather than relying on generic ward-level statistics.
The list below highlights ten stations that stand out in 2025, not because of marketing narratives, but because their numbers make sense.
1. Nakano — Balanced and Deep Investor Market
Key metrics
- Layout: 1R
- Walking distance: around 10 minutes
- Building age: around 40 years
- GRM: approximately 124
- Gross yield: around 5.1 percent
Nakano remains one of Tokyo's most balanced and liquid micro-markets. Despite higher investor attention, GRM levels for older 1R stock remain anchored around 124, pointing to stable rent levels and sustained demand.
For investors, the appeal lies in the combination of deep tenant demand, a broad rental segment, and strong resale liquidity. It is a market where underwriting can be done with relatively high confidence, especially for standard 1R stock within a ten-minute walking radius.
2. Sasazuka — Underpriced Proximity to Shinjuku
Key metrics
- Layout: 1R
- Walking distance: around 4 minutes
- Building age: around 42 years
- GRM: approximately 124
- Gross yield: around 5.0 percent
Sasazuka is a rare micro-market where proximity to a major hub like Shinjuku is not fully priced into older 1R stock. GRM levels sit at roughly the same value as in Nakano despite the shorter walking distance.
This suggests that tenants are comfortable paying rent levels that do not yet fully reflect the location premium, which can create interesting entry points for investors. The tenant base is largely composed of young professionals with stable incomes and regular commuting patterns into central business districts.
3. Gotanda — Core 2LDK Market with Stable Cash Flows
Key metrics
- Layout: 2LDK
- Walking distance: around 7 minutes
- Gross yield: around 4.8 percent
- GRM: mid-160s range
Gotanda is one of Tokyo's strongest mid-market hubs for 2LDK units. It offers a combination of commuting convenience, access to multiple business districts, and a tenant base with higher-than-average income stability.
Yields around 4.8 percent for central 2LDK units are compelling once adjusted for tenant quality and vacancy risk. For investors, Gotanda is less about maximizing yield and more about achieving low-volatility cash flows with strong long-term fundamentals.
4. Edogawabashi — Lifestyle 2LDK with Institutional Profile
Key metrics
- Layout: 2LDK
- Walking distance: around 3 minutes
- Gross yield: around 4.8 percent
- GRM: approximately 165
Edogawabashi is a smaller station but a highly efficient one from an investment perspective. It combines a lifestyle profile with yields that would not be out of place in a purely investor-driven submarket.
Tenant demand is driven by proximity to education, offices, and core Marunouchi and Otemachi nodes. For 2LDK units, the mix of convenience and rent level often leads to long tenancy durations and low vacancy, which is precisely what institutional investors seek.
5. Otsuka — Yield-Oriented 1K Market on the Yamanote Line
Key metrics
- Layout: 1K
- Walking distance: around 6 minutes
- GRM: approximately 138
- Gross yield: around 5.4 percent
Otsuka illustrates how Yamanote-line access does not always translate into compressed yields. For 1K units, yields remain attractive relative to many neighboring stations, with GRM levels that still make sense compared to achieved rents.
The tenant pool is diverse: students, young professionals, and service workers. High absorption for small units and strong transit connectivity make it a compelling station for yield-oriented investors who still want liquidity.
6. Akabane — Underrated High-Yield Node
Key metrics
- Layout: 1K
- Walking distance: around 9 minutes
- GRM: approximately 130
- Gross yield: around 5.7 percent
Akabane is one of the more underrated yield markets in Tokyo. Rental demand is broad and resilient, driven by a mix of commuters, students, and families.
For investors, the key point is that GRM levels remain below what one would expect given the strength of tenant demand. Yields around 5.7 percent for standard 1K stock are compelling in the current interest-rate environment, particularly when combined with relatively low structural vacancy risk.
7. Kasai — Mid-Segment 1LDK Market with Strong Fundamentals
Key metrics
- Layout: 1LDK
- Walking distance: around 8 minutes
- GRM: approximately 142
- Gross yield: around 5.2 percent
Kasai is a practical choice for investors targeting 1LDK units, especially in the mid-price segment. Tenant demand is driven by young couples and small households seeking more space than a 1K or 1R can offer, without paying inner-city prices.
The result is a relatively stable rent profile, low vacancy risk, and yields that remain above the institutional threshold for many strategies. Kasai illustrates how moving slightly away from core wards can improve the risk–return balance.
8. Hatanodai — Compact Units with Strong Rentability
Key metrics
- Layout: 1K
- Walking distance: around 5 minutes
- GRM: approximately 129
- Gross yield: around 5.5 percent
Hatanodai is a micro-market where tenants seem to price location and access correctly, but investors do not fully reflect this in acquisition pricing. The result is a combination of strong rentability and GRM levels that remain attractive for small units.
For investors, 1K units near Hatanodai offer the kind of everyday, dependable performance that underpins a portfolio: relatively high occupancy, moderate rents, and decent exit liquidity.
9. Meguro — Premium Station with Select Pockets of Value
Key metrics
- Layout: 1LDK
- Walking distance: around 11 minutes
- GRM: approximately 170
- Gross yield: around 4.6 percent
Meguro is widely recognized as a premium residential area, and headline yields often look compressed as a result. However, there remain specific pockets of value, especially in older 1LDK stock located slightly beyond the typical eight-minute walking radius.
For investors comfortable with a more selective approach, Meguro offers a combination of strong tenant quality, premium rents, and a long-term capital preservation profile that is difficult to replicate elsewhere in Tokyo.
10. Shimokitazawa — Lifestyle Market with Predictable Occupancy
Key metrics
- Layout: 1R
- Walking distance: around 12 minutes
- GRM: approximately 155
- Gross yield: around 4.9 percent
Shimokitazawa is a lifestyle market first and an investment market second. Yet the underlying numbers are consistently rational: rents remain strong, occupancy is predictable, and the tenant base is relatively stable.
While GRM levels are somewhat higher than in purely yield-driven submarkets, the combination of rent resilience, cultural appeal, and long-term desirability makes it an attractive option for investors who care about both numbers and narrative.
Investor Takeaways
- Station-level analysis consistently outperforms ward-level averages when selecting individual assets, especially when combined with layout and walking-distance filters.
- GRM in the 120 to 140 range remains a useful reference band for older 1R and 1K units in genuine investor-grade micro-markets.
- Gross yields around 4.8 percent for central 2LDK units offer compelling risk-adjusted value when adjusted for tenant quality and vacancy.
- Walking distance to station matters, but its impact is not linear and depends heavily on layout and local rent sensitivity.
- Many stations remain mispriced, particularly those in the six to twelve minute band, where tenants are more flexible than investors expect.
Next Steps: From Stations to Concrete Deals
This article is a starting point, not a complete underwriting framework. To move from station-level conviction to actual deals, investors should combine:
- Station-level GRM benchmarks by layout, as described in GRM Benchmarks by Layout.
- A disciplined process for analyzing individual listings, such as the workflow in How to Analyze a Listing Using Deal Finder.
- A clear view of their own constraints, risk tolerance, and return requirements.
Tokyo remains a market where yields still make fundamental sense, but it rewards precision. The difference between a good station and a great station rarely shows up at the ward level; it shows up when you drill down to layouts, walking distances, and actual deal screens.
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