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Tokyo's Shinjuku ward to slash short-term rental licences

Shinjuku will drastically reduce the number of vacation rentals allowed to operate, as Japan's capital grapples with housing and neighbourhood concerns. The ward, which currently hosts about 10 per cent of Japan's 42,000 registered short-term rentals, is preparing to ban more than half of its properties.

LSN Singapore · 7 September 2026

Tokyo's Shinjuku ward to slash short-term rental licences

Shinjuku ward in central Tokyo is moving to restrict short-term rental operations, marking a significant tightening of regulations in one of Japan's most popular tourist destinations. The sprawling commercial and residential area has emerged as a focal point for vacation rental activity, accounting for roughly 4,200 properties in a national market of 42,000 licensed accommodations.

The clampdown reflects growing tensions between the tourism industry and local residents, who have raised concerns about noise, cleanliness, and neighbourhood character. Housing advocacy groups have also highlighted the impact of short-term rentals on the availability of long-term residential accommodation in the densely populated ward.

The decision to eliminate more than half of Shinjuku's vacation rentals brings the ward in line with stricter approaches adopted by other major Japanese cities. Tokyo authorities have increasingly scrutinised short-term rental operations as part of broader efforts to balance tourism growth with quality-of-life concerns for permanent residents.

Implementation of the new regulations is expected to unfold over the coming months, with ward officials providing transition periods for affected property owners and rental operators. The move signals Tokyo's determination to manage the expansion of tourism-related businesses in high-density urban areas.