--- title: "Sydney vs Tokyo: Class A office comparison" description: "Side-by-side Class A office comparison for Sydney and Tokyo — rent, vacancy, talent, tax, lease norms, transit, and top submarkets." canonical: https://classa.info/compare/sydney-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)." --- > Sydney ($89/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. ## TL;DR - Class A rent: Sydney $89/sqft vs Tokyo $113/sqft. - Vacancy: Sydney 12.6% vs Tokyo 4.6%. - Talent index: Sydney 85 vs Tokyo 84. - Corporate tax: Sydney 30% vs Tokyo 30.6%. - Premium flex/seat/month: Sydney $990 vs Tokyo $980. # Sydney vs Tokyo: Class A office comparison **Sydney ($89/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.** ## TL;DR - [Class A](/glossary/class-a) rent: Sydney $89/sqft vs Tokyo $113/sqft. - Vacancy: Sydney 12.6% vs Tokyo 4.6%. - Talent index: Sydney 85 vs Tokyo 84. - Corporate tax: Sydney 30% vs Tokyo 30.6%. - [Premium flex](/topics/lease-vs-flex)/seat/month: Sydney $990 vs Tokyo $980. ## Market data side-by-side | Metric | Sydney | Tokyo| | Region | APAC | APAC| | Country | Australia | Japan| | Class A rent (USD/sqft/yr) | $89 | $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%| ## Lease norms | 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.| ## Talent | 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.| ## Transit & commute **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. ## Top submarkets — Sydney - [**Circular Quay & Bridge**](/cities/sydney/circular-quay-bridge) — trophy tier · A$1,620/sqm/yr · ≈ $97.8 PSF/yr USD - [**Core CBD**](/cities/sydney/core-cbd) — trophy tier · A$1,500/sqm/yr · ≈ $90.6 PSF/yr USD - [**Barangaroo**](/cities/sydney/barangaroo) — trophy tier · A$1,450/sqm/yr · ≈ $87.6 PSF/yr USD ## Top submarkets — Tokyo - [**Azabudai & Roppongi**](/cities/tokyo/azabudai-roppongi) — trophy tier · ¥60,000/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 Sydney is the cheaper Class A market on a USD basis. ### Pick by talent depth Sydney has the deeper talent index (85/100 vs 84/100). ### Pick by tax Sydney has the lower headline corporate tax (30% vs 30.6%). Local incentives can change the effective rate materially. ### Pick by lease optionality Sydney typical term is 7 years with 30 months free; Tokyo runs 5 years with 4 months free. ### Pick by transit 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. ## Run a 4-city comparison 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. [**Run a 4-city comparison →**](/tools/city-comparator) ## Frequently asked questions ****Is Class A office cheaper in Sydney or Tokyo?**** : Sydney is cheaper on a USD basis: $89/sqft vs $113/sqft. ****Which has better talent depth, Sydney or Tokyo?**** : Sydney indexes higher on talent depth (85 vs 84). ****Which has more sublease availability, Sydney or Tokyo?**** : Sydney carries higher vacancy (12.6% vs 4.6%) and therefore typically more sublease overhang. ****What lease term should I expect in Sydney vs Tokyo?**** : Sydney typical term is 7 years with 30 months rent-free; Tokyo typical term is 5 years with 4 months rent-free. ****How does transit and commuter access compare?**** : 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. ## 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/sydney-vs-tokyo), updated 2026-04-15T00:00:00.000Z.