Where to Live in Tokyo — A Complete Guide to 23 Wards + Tama [Ep.03] Meguro, Setagaya

※ This article is for informational purposes and personal analysis only—not investment, legal, tax, or immigration advice, and not a recommendation to buy or sell any property or financial product. Verify figures, rules, and market data against official sources and consult qualified professionals; you are solely responsible for your decisions. Information reflects the time of writing and may change afterward.

When dreaming of a quiet and sophisticated daily life in Tokyo, which neighborhood comes to your mind first? In nine cases out of ten, people mention Setagaya or Meguro. However, investors who have actually lived here or analyzed the numbers closely know the truth. These two areas may look similar on the surface, but they are entirely different universes with contrasting paces of life and investment appeal.

In this episode, I will dissect Meguro Ward and Setagaya Ward—which sit directly west of the Core 6 Wards (Chiyoda, Chuo, Minato, Shinjuku, Shibuya, and Bunkyo) and are consistently ranked as the most desirable residential areas in Tokyo—complete with firsthand field data.

Structure of This Post

1. Meguro Ward

Brand Positioning

Meguro Ward is an exclusive premium residential zone in Tokyo that perfectly blends urban sophistication with a relaxed, suburban feel.

Even outside the cherry blossom season, walking along the Meguro River (Megurogawa) on a weekend offers an indescribable sense of tranquility. The calm stream is lined with minimalist, highly curated select shops. Nestled along the quiet backstreets are low-rise vintage mansions—high-rise tower condominiums cannot replicate this deep, historic elegance. It is a stunning cityscape that showcases the true premium of a historic luxury residential district.

As you stroll down this riverside path, you encounter the Starbucks Reserve Roastery Tokyo, which instantly captivates visitors with its massive scale and delicate architectural beauty. There are only five such roasteries worldwide (after the Seattle location closed in September 2025), and only two in Asia—Shanghai and Tokyo. The fact that Starbucks chose the Meguro River for its flagship location in Japan is highly symbolic. It is a clear validation of Meguro’s premium status and refined identity by Starbucks’ rigorous global location strategists.

When I walked through a quiet backstreet just slightly off the main riverside of Nakameguro, I was amazed by the profound silence and grace. It is only three stops away from the chaotic skyscrapers of Shibuya, yet it feels like a different world. This is the true asset value and irreplaceable premium that Meguro Ward offers.

Average Mansion Purchase Prices

Meguro Ward commands formidable prices along the highly popular Tokyu Toyoko Line (東急東横線). Finding a “cheap deal” within this ward is virtually impossible.

Average Rental Market Rates

Rents for a brand-new 1LDK near Nakameguro or Meguro Station easily climb above 250,000 yen per month, rivaling the mid-tier areas of Shibuya Ward.

Average Income per Taxpayer

The average taxable income — the income base used for municipal tax assessments — per taxpayer in Meguro Ward is approximately 7.695 million yen.³ This ranks 6th among all Tokyo 23 Wards, trailing Minato (1st), Shibuya (2nd), Chiyoda (3rd), Chuo (4th), and Bunkyo (5th). It reflects a solid demographic of high-earning single professionals and dual-income power couples.

Population Dynamics

Expatriate Population Ratio

The number of registered foreign residents in Meguro Ward is 12,563, which translates to approximately 4.42% of the total population.¹ A significant number of Western corporate executives and multinational professionals reside in its upscale residential quarters.

Target Demographics

• For Relocators: Ideal for creative professionals and DINKs — Double Income, No Kids — who prioritize sophisticated café culture, international environments, and safe, premium lifestyles.
• For Investors: Perfect for long-term capital-value-driven investors seeking maximum downside risk protection — the safety net against price drops — backed by the legendary Tokyu Toyoko Line.

2. Setagaya Ward

Brand Positioning

Setagaya Ward is a legendary synonym for “traditional luxury” and “family” in Tokyo. As the largest ward by area and the most populated of the 23 Wards, it shares the character of a massive high-end residential city.

In particular, Shimokitazawa (下北沢), the ward’s famous cultural hub, carries an incredibly charming atmosphere. Walking through its backstreets—which have been transformed into a calm and sophisticated walk path after the undergrounding of the old train tracks—you will find an endless array of tasteful interior decor shops and unique accessory boutiques. Unlike noisy and chaotic commercial centers, the alleys of Shimokitazawa remain peaceful, yet they exude a highly sophisticated artistic aura.

From Futakotamagawa (二子玉川) with its large shopping malls and Tamagawa riverside park (ideal for raising children) to Seijo (成城)—the absolute peak of traditional luxury estates with mature forests and massive villas—Setagaya Ward consists of independent high-end micro-universes, each with its own distinct charm.

On a weekend afternoon, as I watched families walking toward the Tamagawa riverbank from the Futakotamagawa Rise mall, I instantly realized why this neighborhood is considered the ultimate paradise for Tokyo families.

Average Mansion Purchase Prices

Although detached houses dominate the ward, the tsubo unit price — price per tsubo — of high-rise tower mansions near key transit hubs has been rising rapidly.

Average Rental Market Rates

Compared to Meguro Ward, Setagaya’s vast area means that if you are willing to walk 10+ minutes from a station or look further outward, you can easily find spacious family-sized properties at highly reasonable rents.

Average Income per Taxpayer

The average taxable income — the taxable income base per taxpayer — in Setagaya Ward is approximately 6.812 million yen.³ Because the ward covers a vast area with a highly diverse household demographic, the arithmetic mean is lower than Meguro’s. However, exclusive luxury pockets like Seijo and areas bordering Den-en-chofu host massive enclaves of corporate owners, top executives, and celebrities.

Population Dynamics

Expatriate Population Ratio

The number of registered foreign residents in Setagaya Ward is 31,177, which accounts for approximately 3.35% of the total population.² While the absolute number is high due to Setagaya’s massive total population, the overall proportion of expats is slightly lower than Meguro’s, reflecting the more traditional residential nature of the ward.

Target Demographics

• For Relocators: Best for families of three or more who need excellent primary and secondary school environments, massive parks, and pleasant, family-centric streets.
• For Investors: Yields hover around 3.8% to 4.5%, making this ward ideal for stability-oriented investors seeking a rock-solid, domestically driven tenant base.

3. Data Comparison (Arithmetic Gate)

Comparing the core statistics of Meguro and Setagaya wards reveals their distinct profiles with mathematical clarity.

• Taxable Income Gap (Subtraction Verification): Subtracting Setagaya Ward’s average taxable income of 6.812 million yen from Meguro Ward’s average taxable income of 7.695 million yen yields an income gap of 0.883 million yen (7.695 − 6.812 = 0.883 million yen). Result: Taxpayers in Meguro Ward enjoy an average taxable income that is approximately 0.88 million yen (about 13.0%) higher than those in Setagaya.³

• Population Scale Gap (Division Verification): Dividing Setagaya’s total population of 931,090 by Meguro’s total population of 283,913 yields a ratio of approximately 3.28 times (931,090 ÷ 283,913 = 3.2794… times). Result: Setagaya Ward is a massive mega-city with a population and residential market over 3.2 times larger than Meguro’s.²

• Expat Ratio Difference (Direct Comparison): Subtracting Setagaya’s foreign resident ratio of 3.35% from Meguro’s foreign resident ratio of 4.42% yields a difference of 1.07 percentage points (4.42 - 3.35 = 1.07%p). Result: Meguro Ward’s closer proximity to downtown employment hubs and its strong preference among multinational corporate executives translate into a slightly denser expat-friendly ecosystem.¹²

Summary Comparison Table

4. Investment & Living Guide

In my view, the conclusion is clear.

If your primary goals are rapid tenant turnover and robust downside protection in a medium-term horizon, you should focus your portfolio on small properties (studios or 1LDKs) near stations along Meguro Ward’s Tokyu Toyoko Line (東急東横線).

On the other hand, if you want a rock-solid, long-term asset backed by domestic family demand, or if you plan to move to a spacious, green neighborhood with superb amenities (parks and malls), I highly recommend a 2LDK or 3LDK family apartment near express stops along Setagaya Ward’s Tokyu Den-en-toshi Line (東急田園都市線) or Odakyu Line (小田急線).

Data Reference Point (May 2026): Population and expat data are based on the official basic resident register releases from each ward as of the first half of 2026. Average taxable income follows MIC FY2025 (令和7年度) municipal tax survey Table 11 (footnote 3): taxable income per income-tax payer. Ward-average mansion ㎡ prices are based on MLIT Real Estate Transaction Price Information (2025 Q1–Q4), sourced from the Real Estate Information Library (reinfolib.mlit.go.jp). Sub-area price ranges are list-price estimates pending re-verification against MLIT transaction data. Rental rates reference the May 2026 listing indices of LIFULL HOME’S and SUUMO. Prior to making investment decisions, please consult with a qualified local judicial scrivener (司法書士) and tax accountant (税理士) to verify the latest tax regulations.

Investor Action Checklist

• Line Analysis: Define your target railway line — Tokyu Toyoko Line (sophisticated, high unit price) versus Tokyu Den-en-toshi Line or Odakyu Line (family-centric, spacious, green).
• Parking Space Verification: For family-sized properties in Setagaya, especially those over 10 minutes from a station, having an allocated parking space (駐車場) often decides the success of your rental contract. Have you checked the parking ratios beforehand?
• School District Check: If you plan to move to Setagaya with your family, cross-reference school reputations and proximity to renowned private junior high schools.

View All in This Series

• Series Prologue: Where to Live in Tokyo
• Ep.1: Core 3 Wards — Chiyoda, Chuo, Minato
• Ep.2: Core 6 Wards — Shinjuku, Shibuya, Bunkyo
• Ep.4: Business Gateway — Shinagawa & Ota
• Ep.5: Hipster Inner Ring — Toshima, Nakano, Suginami