--- title: "Melbourne vs Tokyo: Class A office comparison" description: "Side-by-side Class A office comparison for Melbourne and Tokyo — rent, vacancy, talent, tax, lease norms, transit, and top submarkets." canonical: https://classa.info/compare/melbourne-vs-tokyo pageType: comparison lastUpdated: 2026-04-15T00:00:00.000Z license: "CC BY 4.0 with attribution to Class A Atlas (https://classa.info)." --- > Melbourne ($43/sqft, 18.4% vacancy) and Tokyo ($113/sqft, 4.6% vacancy) compete on different axes: Melbourne on talent depth and Tokyo on talent depth. ## TL;DR - Class A rent: Melbourne $43/sqft vs Tokyo $113/sqft. - Vacancy: Melbourne 18.4% vs Tokyo 4.6%. - Talent index: Melbourne 84 vs Tokyo 84. - Corporate tax: Melbourne 30% vs Tokyo 30.6%. - Premium flex/seat/month: Melbourne $720 vs Tokyo $980. # Melbourne vs Tokyo: Class A office comparison **Melbourne ($43/sqft, 18.4% vacancy) and Tokyo ($113/sqft, 4.6% vacancy) compete on different axes: Melbourne on talent depth and Tokyo on talent depth.** ## TL;DR - [Class A](/glossary/class-a) rent: Melbourne $43/sqft vs Tokyo $113/sqft. - Vacancy: Melbourne 18.4% vs Tokyo 4.6%. - Talent index: Melbourne 84 vs Tokyo 84. - Corporate tax: Melbourne 30% vs Tokyo 30.6%. - [Premium flex](/topics/lease-vs-flex)/seat/month: Melbourne $720 vs Tokyo $980. ## Market data side-by-side | Metric | Melbourne | Tokyo| | Region | APAC | APAC| | Country | Australia | Japan| | Class A rent (USD/sqft/yr) | $43 | $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%| ## Lease norms | 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.| ## Talent | 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.| ## Transit & commute **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. ## Top submarkets — Melbourne - [**CBD East (Collins Street)**](/cities/melbourne/cbd-east) — [trophy tier](/topics/trophy-asset-selection) · A$880/sqm/yr · ≈ $53.1 PSF/yr USD - [**CBD West (Spencer Street)**](/cities/melbourne/cbd-west-spencer) — trophy tier · A$800/sqm/yr · ≈ $48.3 PSF/yr USD - [**Southbank**](/cities/melbourne/southbank) — prime tier · A$750/sqm/yr · ≈ $45.3 PSF/yr USD ## Top submarkets — Tokyo - [**Azabudai & Roppongi**](/cities/tokyo/azabudai-roppongi) — trophy tier · ¥60,000/[tsubo](/topics/apac-lease-conventions)">tsubo/mo · ≈ $136 PSF/yr USD - [**Marunouchi & Otemachi**](/cities/tokyo/marunouchi-otemachi) — trophy tier · ¥55,000/tsubo/mo · ≈ $124 PSF/yr USD - [**Toranomon**](/cities/tokyo/toranomon) — trophy tier · ¥50,000/tsubo/mo · ≈ $113 PSF/yr USD ## Decision criteria ### Pick by cost Melbourne is the cheaper Class A market on a USD basis. ### Pick by talent depth Talent data not available for comparison. ### Pick by tax Melbourne has the lower headline corporate tax (30% vs 30.6%). Local incentives can change the effective rate materially. ### Pick by lease optionality Melbourne typical term is 7 years with 14 months free; Tokyo runs 5 years with 4 months free. ### Pick by transit 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. ## Run a 4-city comparison 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. [**Run a 4-city comparison →**](/tools/city-comparator) ## Frequently asked questions ****Is Class A office cheaper in Melbourne or Tokyo?**** : Melbourne is cheaper on a USD basis: $43/sqft vs $113/sqft. ****Which has better talent depth, Melbourne or Tokyo?**** : Roughly comparable. ****Which has more sublease availability, Melbourne or Tokyo?**** : Melbourne carries higher vacancy (18.4% vs 4.6%) and therefore typically more [sublease](/glossary/sublease) overhang. ****What lease term should I expect in Melbourne vs Tokyo?**** : Melbourne typical term is 7 years with 14 months rent-free; Tokyo typical term is 5 years with 4 months rent-free. ****How does transit and commuter access compare?**** : 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. ## Editorial provenance Reviewed by [**Kenji Watanabe**](/about/authors/kenji-watanabe) — APAC contributing editor. Last updated 2026-04-15. See our [methodology](/about/methodology) and [editorial standards](/about/editorial-standards). ### Primary sources for this page - [CBRE Marketview reports](https://www.cbre.com/insights) — CBRE - [JLL Office Insight](https://www.jll.com/en/trends-and-insights) — JLL - [Cushman & Wakefield Marketbeat](https://www.cushmanwakefield.com/en/insights) — Cushman & Wakefield - [Savills World Research](https://www.savills.com/research_articles/) — Savills - [Colliers Global Office Outlook](https://www.colliers.com/en/research) — Colliers [Full sources index](/about/sources) · [Submit a correction](/about/corrections) --- Citation: Source: Class A Atlas (https://classa.info/compare/melbourne-vs-tokyo), updated 2026-04-15T00:00:00.000Z.