THE UNIQUE APPEAL OF TOKYO AND JAPAN ’ S SERVICED APARTMENT MARKET : AN EXPERT ’ S PERSPECTIVE
GSAIR 2024 : APAC 10
THE UNIQUE APPEAL OF TOKYO AND JAPAN ’ S SERVICED APARTMENT MARKET : AN EXPERT ’ S PERSPECTIVE
By KANA KUMOSHITA CEO , KADO-Me
KADO-Me is a specialist Japanese consultancy , based out of Tokyo . CEO Kana Kumoshita established the business to connect foreigners with Japan , whilst promoting economic development and appealing to investors interested in Japanese real estate and beyond .
In Japan , a country with language and cultural barriers , serviced apartments provide an ideal solution for foreign executives and expatriates who require a business-focused living environment . Japan ’ s serviced apartment market has a history of over 20 years , with major global providers like Ascott and Oakwood , as well as unique Japanese operators such as Mori Building and Enplus . Although serviced apartments are familiar to business professionals globally , Japan ’ s market differs from the U . S . and Europe in terms of legal procedures and required documentation . Partnering with a reliable service provider is crucial to ensure compliance with Japan ’ s unique regulations .
This article explores five key aspects of Japan ’ s serviced apartment market from the perspective of KADO-Me , a service provider with years of experience supporting business professionals and international companies entering Japan .
In 2024 , two notable new properties joined the market : Hyatt House Tokyo Shibuya , opened in March 2024 , offers well-equipped kitchens and comfortable living spaces ideal for long stays . Lyf Shibuya , set to open in November 2024 , is a unique , co-living facility designed to attract young professionals and creatives . These new properties illustrate the continued growth and diversification of Tokyo ’ s serviced apartment market , providing options that cater to different needs and lifestyles .
In addition , Mori Building ’ s Azabudai Project , a luxury serviced apartment complex scheduled to open in 2026 , will provide about 160 units from studios to two-bedroom layouts , targeting affluent business professionals . This project represents both the expansion of high-end serviced apartments and the
1 . Growing demand and supply : market expansion
During the pandemic , Tokyo ’ s serviced apartment market experienced a significant reduction in available properties . However , post-pandemic , demand has stabilised and even grown , driven by increased foreign investment due to the weakened yen , as well as a shift from long-term expatriate assignments ( 2-3 years ) to shorter stays of around one year . The surge in inbound tourism has led to higher hotel occupancy rates and prices in central Tokyo , which has also driven demand for serviced apartments .
Notably , newly opened properties with hotel licenses now offer stays from as short as one night , distinguishing them from traditional hotels . Serviced apartments offer privacy , spaciousness , and convenience , making them attractive for longterm stays for expatriates , international business professionals , and tourists who desire a comfortable , home-like environment with hotel-grade services .
Credit : Quest Apartment Hotels