Melbourne ($468/sqft, 18.4% vacancy) and Tokyo ($113/sqft, 4.6% vacancy) compete on different axes: Melbourne on talent depth and Tokyo on talent depth.
Melbourne ($468/sqft, 18.4% vacancy) and Tokyo ($113/sqft, 4.6% vacancy) compete on different axes: Melbourne on talent depth and Tokyo on talent depth.
| Metric | Melbourne | Tokyo |
|---|---|---|
| Region | APAC | APAC |
| Country | Australia | Japan |
| Class A rent (USD/sqft/yr) | $468 | $113 |
| Class A rent (local) | 720 AUD | 50000 JPY |
| Vacancy | 18.4% | 4.6% |
| Trend | softening | rising |
| Prime yield | 5.4% | 3% |
| Premium flex / seat / month (USD) | $720 | $980 |
| Submarkets covered | 5 | 6 |
| Corporate tax | 30% | 30.6% |
| Metric | Melbourne | Tokyo |
|---|---|---|
| Typical term | 7 yrs | 5 yrs |
| Typical rent-free | 14 mos | 4 mos |
| Lease norms | Net leases. 7-10 year terms standard. Incentives of 30-45% (combination of free rent, fitout, and rent abatement) typical on a 10-year Class A deal. | Tokyo leases are typically 5-7 years with a 2-year tenant notice. Standard leases are 'fixed-term' (teiki shakuya) or 'ordinary' (futsu shakuya) — fixed-term is increasingly common for Grade A. Rent is base + common-area maintenance billed separately. Restoration to original (genjo kaifuku) is contractual and significant. Personal seal (jitsuin) requirements apply. |
| Tax note | 30% Australian corporate tax (25% for base rate entities). Victorian state payroll tax of 4.85-6.85%. R&D tax incentive available federally. | Effective corporate tax rate 30.6% (national + local). Tokyo Metropolitan corporate inhabitant tax adds a meaningful local component. |
| Metric | Melbourne | Tokyo |
|---|---|---|
| Talent index (0–100) | 84 | 84 |
| Talent note | Deep professional services, banking, education, and creative talent. Strong feed from University of Melbourne, Monash, and RMIT. English-fluent professional base; multicultural workforce. | The largest single-language white-collar talent pool in the world. Average all-in compensation for senior knowledge workers indexes 84 vs. New York's 100, though English-fluent bilingual talent commands a premium. |
Melbourne: Metro Trains (suburban rail), Yarra Trams (the world's largest tram network), and bus. Melbourne Metro Tunnel opens 2025 — adds five new stations under the CBD.
Tokyo: JR Yamanote loop plus 13 metro lines connect every Class A address. Shinkansen termini at Tokyo, Shinagawa, and Ueno support inter-city corporate networks.
Tokyo is the cheaper Class A market on a USD basis.
Talent indices are tied at 84/100.
Melbourne has the lower headline corporate tax (30% vs 30.6%). Local incentives can change the effective rate materially.
Melbourne typical term is 7 years with 14 months free; Tokyo runs 5 years with 4 months free.
Melbourne: Metro Trains (suburban rail), Yarra Trams (the world's largest tram network), and bus. Melbourne Metro Tunnel opens 2025 — adds five new stations under the CBD. Tokyo: JR Yamanote loop plus 13 metro lines connect every Class A address. Shinkansen termini at Tokyo, Shinagawa, and Ueno support inter-city corporate networks.
Score Melbourne, Tokyo and up to two more markets side-by-side on Class A rent, vacancy, talent, corporate tax, and premium flex pricing — all in USD.
Reviewed by Kenji Watanabe — APAC contributing editor. Last updated 2026-04-15. See our methodology and editorial standards.