Sydney ($96/sqft, 12.6% vacancy) and Tokyo ($113/sqft, 4.6% vacancy) compete on different axes: Sydney on talent depth and Tokyo on rent and tax.
Sydney ($96/sqft, 12.6% vacancy) and Tokyo ($113/sqft, 4.6% vacancy) compete on different axes: Sydney on talent depth and Tokyo on rent and tax.
| Metric | Sydney | Tokyo |
|---|---|---|
| Region | APAC | APAC |
| Country | Australia | Japan |
| Class A rent (USD/sqft/yr) | $96 | $113 |
| Class A rent (local) | 1480 AUD | 50000 JPY |
| Vacancy | 12.6% | 4.6% |
| Trend | flat | rising |
| Prime yield | 5.5% | 3% |
| Premium flex / seat / month (USD) | $990 | $980 |
| Submarkets covered | 6 | 6 |
| Corporate tax | 30% | 30.6% |
| Metric | Sydney | Tokyo |
|---|---|---|
| Typical term | 7 yrs | 5 yrs |
| Typical rent-free | 30 mos | 4 mos |
| Lease norms | Standard 5-10 year lease. Gross or net structure (both common). Australian leases distinguish 'face rent' (headline) from 'effective rent' (face minus incentive). Incentives of 30-40% are now standard — typically structured as rent abatement, fit-out">fit-out contribution, or both. | 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 | Federal corporate tax 30%. NSW payroll tax applies. No state corporate income tax. | Effective corporate tax rate 30.6% (national + local). Tokyo Metropolitan corporate inhabitant tax adds a meaningful local component. |
| Metric | Sydney | Tokyo |
|---|---|---|
| Talent index (0–100) | 85 | 84 |
| Talent note | Australia's deepest financial-services, technology, and professional-services talent pool. Average all-in compensation indexes 85. | 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. |
Sydney: Sydney Metro and Sydney Trains converge at Wynyard, Town Hall, and Central. The new Sydney Metro City & Southwest line transformed core CBD commute capacity.
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.
Sydney is the cheaper Class A market on a USD basis.
Sydney has the deeper talent index (85/100 vs 84/100).
Sydney has the lower headline corporate tax (30% vs 30.6%). Local incentives can change the effective rate materially.
Sydney typical term is 7 years with 30 months free; Tokyo runs 5 years with 4 months free.
Sydney: Sydney Metro and Sydney Trains converge at Wynyard, Town Hall, and Central. The new Sydney Metro City & Southwest line transformed core CBD commute capacity. 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 Sydney, 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.