1. From districts to stations
Most international reports talk about Shinjuku, Shibuya or Minato as if they were uniform markets. On the ground, pricing and rent are driven by specific stations and the lines that serve them. Walking ten minutes in the wrong direction can move you into an entirely different demand profile. A serious framework therefore starts at the station level, not at the ward name on the listing.
2. Core drivers of station micro‑markets
Each station can be described through a small set of variables: line connectivity, commuter flow, surrounding employment hubs, retail density, university or school presence, and competing stock. Together they define rent ceilings, vacancy behaviour and buyer liquidity. Tokyo Insights models these variables so that you can compare stations side by side instead of relying on intuition.
3. Walk‑time penalty curve
Distance to station is one of the strongest predictors of rent and GRM in Tokyo. The penalty is not linear: the drop from 0→5 minutes is steep, 5→10 is moderate, and beyond 12–15 minutes the curve flattens. Understanding this shape prevents you from over‑discounting or overpaying for units at 8–12 minutes where many foreign investors misjudge the real tenant behaviour.
4. Layout and age competitiveness
Layout (1R, 1K, 1LDK, family) and age act as filters inside each station. A 25‑year‑old 1K may be very competitive at one station and structurally weak at another. Station‑level benchmarking lets you see whether you are in the "core" of tenant demand or on the periphery where rent discounts and slower exits appear first when the cycle turns.
5. Liquidity and exit risk
Micro‑markets with strong, diversified demand and active investor participation tend to keep tighter spreads between listing and closing prices. In weaker micro‑markets, spreads widen quickly and exit times stretch. A station‑level framework explicitly tracks this liquidity dimension so that you can size positions and leverage accordingly.
6. Applying the framework to real deals
Practically, this framework turns into a checklist used before you even open the brochure: station quality, line type, walk‑time position, layout corridor, age corridor, GRM range and liquidity indicators. When these boxes line up, you are evaluating a deal inside a strong micro‑market rather than gambling on a nice photo and a cheap price.