why is it to cheap to live in Tokyo?

Tokyo, the capital of Japan, is a city of diverse culture, known for its modern cityscape and historical landmarks. It attracts countless foreign tourists, as well as many other foreign nationals who come to work or study. In this article, we examine if Tokyo is an affordable place to live in by comparing its average rent with other global cities. We also give some important pointers for foreigners who plan to live in Tokyo.

Rental Housing in Tokyo

Rents in Tokyo vary greatly depending on the specific area, property type, and many other conditions. In general, the closer a place is to a major commercial district or train station, the higher the rent will be. As you move to the suburbs and remote areas, rents tend to become cheaper.

Rents in Tokyo are also influenced by land prices and population density. The 23 Special Wards have a high housing demand in a very limited space, so rents tend to be more expensive. On the other hand, the suburbs outside of central Tokyo generally have cheaper rents.

Rental housing comes in different types, from apartments to condominiums and freestanding houses. Besides the type, rents can also vary depending on the age of the house and its included facilities. Compared to other cities in Japan, rents in Tokyo are generally on the high side. But how about when compared to other major cities around the world?

Comparison of Rents in Tokyo and Other Global Cities

From a macroeconomic perspective, rents in major cities around the world are influenced by supply and demand, as well as the city’s economic condition. For example, cities like New York, London, and Paris are global centers for business and culture, and they generally have very high rents.

The rent for a studio-type or 1K apartment for singles in Tokyo generally costs around 80,000 to 150,000 yen per month. Let’s see how this compares with the rent in other major cities.

• New York (USA)

As a global center for business, finance, and culture, New York tends to have very expensive rents. A studio-type or 1-bedroom apartment for singles in central Manhattan generally costs around 2,000 to over 4,000 USD per month. This can increase significantly for more luxurious properties.

• London (UK)

London is major economic and cultural center in Western Europe. A studio-type or 1-bedroom apartment for singles in central London generally costs around 1,000 to 2,000 pounds per month.

• Paris (France)

Paris is known for being a global center for culture and tourism. A studio-type or 1-bedroom apartment for singles in central Paris generally costs around 800 to 1,500 euro per month.

In Asia, cities like Hong Kong and Singapore are global economic hubs with large foreign populations, and they also tend to have high rents.

• Hong Kong (China)

A studio-type or 1-bedroom apartment generally costs around 20,000 to over 40,000 HKD (approx. 2,580 to 5,160 USD) per month.

• Shanghai (China)

A studio-type or 1-bedroom apartment generally costs around 4,000 to 8,000 CNY (approx. 620 to 1,240 USD) per month.

• Singapore

A studio-type or 1-bedroom apartment generally costs around 2,000 to 3,000 SGD (approx. 1,480 to 2,220 USD) per month.

As you can see, major cities in the west like New York, London, and Paris generally have high rents. In Asia, cities like Tokyo or Singapore are relatively cheaper, but are still fairly expensive overall. In particular, Hong Kong is known for having very high rents, especially in its popular areas.

What Makes Rents in Tokyo Relatively Cheap?

Despite being a major economic and cultural center, Tokyo seems to be cheaper compared to other major cities around the world. Behind this discrepancy is the different housing situation in Japan.

One of the reasons for Tokyo’s relative affordability is the stability of the real estate industry in Japan. Specifically, there is a general balance in the supply and demand of housing. Building lifespans are relatively short, and urban redevelopment is frequent. Lease contracts are also generally long, which means that tenants get to pay the same rent for longer periods, adding to the stability.

Furthermore, Tokyo has a well-developed transportation network, which allows people to live in the suburbs or remote areas where rents are cheaper, while still maintaining ease of access. This also helps spread out the demand for housing.

Pointers for Foreigners Planning to Live in Tokyo

If you are foreigner planning to live in Tokyo, there are some important points you need to consider. Firstly, cultural differences and the language barrier can become an issue. If you are not proficient in Japanese, you may not be able to fully understand the contents of a lease contract, and you will need to rely on a trustworthy real estate agency or other support organizations. There are also cultural quirks like the payment of key money (reikin) and security deposits (shikikin), so you will need to prepare a significant amount of money before you can start renting a house.

If you wish to live a comfortable life in Tokyo, you will need to understand and adapt to Japan’s culture and customs. For example, it is customary in Japan to take off your shoes before entering a house. There are also detailed rules regarding garbage separation which can vary by area, so care must be taken.

Summary

In this article, we examined if Tokyo is a cheap city to live in by comparing its rents with other global cities. In general, Tokyo is a relatively affordable city in terms of rent, and is also attractive for its safety and convenience. However, understanding Japan’s culture and customs is important in order for foreign residents to lead a comfortable life in Japan’s capital.

If you are looking for a place to live in Tokyo, it is important to find a reliable real estate agency that can provide good service and professional advice to foreigners. You should also make an effort to learn the Japanese language and understand the local culture to ensure a smooth life in Japan. With the proper preparation, living in Tokyo can be a wonderful experience.