Key Facts
• June 2025: Residents of a 40-year-old Tokyo apartment received notice of rent doubling.
• Rent increase: From approximately ¥70,000 to over double the original amount.
• Elevator shutdown: Marked as “under repair,” leading to 40% of residents leaving or planning to leave.
• Owner’s motive: Potentially to convert units into vacation rentals for higher returns.
• Vacation rental profitability: ¥25,000 per night for two people, significantly higher than rental income.
• Post-pandemic trend: Increased demand for vacation rentals due to inbound tourism growth.
• Chinese-owned companies: Significant presence in vacation rental operations, with over 40% in Osaka linked to Chinese entities.
• June 2025: Rent hike retracted by the owner after backlash.
• Vacation rental advantages: Flexible use, less noise sensitivity, and cost-sharing for larger groups.
Summary
A Tokyo apartment complex, over 40 years old, faced controversy in June 2025 when residents were notified of a rent increase exceeding double the original amount. Following this, the building’s elevator was marked “under repair,” rendering it unusable and prompting 40% of residents to leave or plan their departure. Experts suggest the owner’s intent was to convert units into vacation rentals, which yield significantly higher returns compared to traditional rentals. For instance, vacation rental rates in the area reach ¥25,000 per night for two people, far surpassing the monthly rental income of ¥70,000. This trend aligns with the post-pandemic surge in inbound tourism and the growing popularity of vacation rentals. Notably, Chinese-owned companies play a prominent role in this sector, with over 40% of vacation rental operators in Osaka linked to Chinese entities. After public backlash, the rent hike was retracted, but the incident highlights the tension between traditional housing and the lucrative vacation rental market.
