Aberdeen Investments and Weave Living have acquired six modern residential properties in central Tokyo. This acquisition was made on behalf of a European investor, a long-standing partner of Aberdeen in the region. The transaction marks a further strengthening of both partners' presence in the Japanese residential property sector. The Japanese residential market is underpinned by attractive fundamentals, resulting from a persistent supply deficit, ongoing urbanisation, and favourable political frameworks.
High construction costs and a shortage of labour are limiting new residential development, while demand for rental housing, particularly in Tokyo, continues to grow. This trend is reinforced by ongoing immigration, the increasing number of single-person households, and the interest of institutional investors. Against this backdrop, residential rents in Tokyo have risen, largely in line with household income development. Property prices have remained stable despite increased interest rates.
In the first quarter of 2026, the average occupancy rate in Tokyo's 23 city wards, the city's core, increased by 0.6 percentage points quarter-on-quarter to 96.8 percent. Rents rose by 1.3 percent during this period and by 3.3 percent year-on-year. In the five central city wards (Central Fire Wards), the occupancy rate in the first quarter was 96.4 percent, and rents recorded growth of 0.5 percent compared to the previous quarter, and 4.1 percent year-on-year.
The newly acquired portfolio comprises 275 residential units in central Tokyo locations. The acquisition was made off-market through Weave Living's proprietary deal pipeline. The six properties, completed between 2023 and 2026, are located in Tokyo's 23 city wards, including Shinjuku, Nakano, Suginami, and Toshima. All locations are less than a ten-minute walk from a railway station. Five of the properties will be operated as furnished apartments under Weave Living's urban residential brand 'Weave Place', while the sixth property will continue to be managed as a traditional residential property. This concept aims to optimise net operating income and capitalise on structural changes in the rental market.
Harumi Kadono, Head of Japan Real Estate at Aberdeen Investments, stated that the transaction underscores their long-term commitment to the Japanese real estate market. She remains optimistic about the Japanese residential property sector, particularly in Tokyo, as robust rental demand, limited supply, and positive demographic developments create an attractive environment. Weave Living, a leading specialist in residential property in the Asia-Pacific region, is on hand to offer an attractive and differentiated housing proposition to tenants in Tokyo. Furthermore, significant potential is seen in flexible and furnished housing concepts, driven by increasing numbers of foreign professionals, international students, as well as business and leisure travellers. This trend is supported by the digital nomad visa programme and the expansion of modern working and co-working infrastructure.
Sachin Doshi, Founder and Group CEO of Weave Living, highlighted that the partnership with Aberdeen Investments is a key component of the growth strategy for their residential-focused fund management business in Japan and across the entire Asia-Pacific region. The additions to the Japan portfolio underscore their goal of providing high-quality housing solutions to discerning tenants in prime locations in Tokyo. The collaboration with an investor like Aberdeen is testament to their ability to identify and execute attractive off-market investment opportunities in a competitive market.
With these latest acquisitions, Aberdeen strengthens its position in the Japanese residential property market. Already in 2025, the company had acquired three single properties and a portfolio of 29 residential properties. As of 30 June 2026, Aberdeen's residential property portfolio in Japan comprised 57 properties with a total value of approximately JPY 150 billion (USD 920 million). For Weave Living, the transaction represents the next step in its expansion in Japan. Since entering the market in 2023, the company has built a portfolio there worth approximately JPY 110 billion (USD 680 million).
