1. CITY SYNOPSIS:
TOKYO
After finishing runner-
up in 2014,Tokyo
was named Monocle
Magazine’s most
livable city in 2015.
The London-based
lifestyle and culture
journal gaveTokyo
the top spot in its
ninth annual quality
of life survey due to
its “defining paradox
of heart-stopping size
and concurrent feeling
of peace and quiet.”1
And this comes as no
surprise to those who live
in this electric city. Safe,
clean, and rarely dull,
Japan’s capital continues
to excite with energy as
one of the busiest cities in
the world. It is also one of
the most accommodating
to outsiders and
assignees – and can be
surprisingly affordable for
those willing to adapt.2
ABOUT TOKYO
FACTS
>> Country: Japan
>> Population: 13.35 million
>> Climate: Temperate; dry, mild winters
and warm, humid summers
>> Languages: Japanese, English
>> Industries: Manufacturing, industrial,
exports, petrochemicals, pharmaceuticals,
aerospace, processed foods
>> Dominant mode of transportation:
Public transportation system
ECONOMIC TRENDS
In recent decades, Tokyo’s economy has
shifted to put a stronger emphasis on financial
services and banking. It is also an important
wholesale center. Tokyo manufacturing includes
electronics, transport equipment, automobiles,
cameras and optical goods, furniture, textiles,
and a wide variety of consumer items, as well
as publishing and printing.3
The city resides on the Kanto plain and
is intersected by the Sumida River, which
includes an extensive network of canals.
While Yokohama is the seaport that is located
less than 30 minutes from Tokyo by train,
there is a large man-made port at the mouth
of the Sumida through which items such as
electronics, cameras, and automobiles are
exported. The deepening of Tokyo’s harbor and
the development of storage facilities have
gradually lessened the city’s dependence on
Yokohama. Land reclamation projects in Tokyo
Bay have led to new residential developments.4
TOKYO IN 2020
Due to its central location, Tokyo makes an easy
base for exploring the rest of Japan. In the
coming years, Tokyo is expected to have an influx
of visitors due to the 2020 Summer Olympics.
In July 2015, Japanese sports officials approved
plans to build a national stadium in preparation
for the 2020 Summer Olympic games. Tokyo
will be the only Asian city to have hosted two
Olympics – the first time was in 1964. The state-
of-the-art sports facility is projected to cost 252
billion yen and is intended to be the centerpiece
of the games.
What does this mean for assignees? Many
Tokyoites encounter foreigners on a daily
basis, and can be very helpful and patient with
foreigners. English speakers in particular can
expect to feel more comfortable in the coming
years, as Tokyo is making an even greater
commitment to English language education
because of the 2020 Summer Olympics.
GETTING AROUND IN THE CITY
Tokyo has an outstanding subway system,
and the world’s first public monorail line
runs between downtown and the Haneda
International Airport. It is the dominant
mode of transportation throughout the city.
The transportation system also includes
1
Jun Hongo. “Tokyo Tops Monocle’s Most Livable City Ranking.” The Wall
Street Journal. June 11, 2015.
2
Lindsey Galloway. “Living in Tokyo.” BBC News, September 24, 2014.
3
http://www.infoplease.com/encyclopedia/world/tokyo-economy.html
4
Ibid.
Baker’sDozen
CustomerSatisfactionRatings
2015 Winner
RELOCATION
2. the Shinkansen, with “bullet trains” that connect Tokyo and Osaka,
in addition to other cities.
Japan has one of the lowest crimes rates of any developed nation.
And Tokyo is one of the safest cities in the world. Street crime rates
are extremely low compared to other industrialized countries. Bike
theft is Tokyo’s biggest crime problem. That being said, however,
pickpocketing is on the rise, and foreign nationals should always take
precautions when traveling. Women are cautioned against walking
through parks alone at night.
TOKYO HOUSING
The largest expense an assignee will have in Japan is housing. There is a
wide range of options available to suit taste and preference, but competition
can be fierce and costs can be pricey – even for small, sub-standard spaces.5
A recent housing trend to hit Japan is coming from China. Busloads of
Chinese real estate buyers are buying up homes, ultimately pushing prices
higher.6
Partly as a result of this new trend, Tokyo apartment prices have
reached the highest levels since the early 1990s, up 11-percent over two
years, according to the Real Estate Economic Institute Company. Japan’s
sluggish economy caused price gains in Tokyo to trail those in other urban
markets like New York, London, and Hong Kong since the 2007 global
credit crisis. Buyers and renters from China, according to the Boston
Consulting Group, have the potential to quickly change the dynamics of
local property markets.7
The following neighborhoods are known to be comfortable and foreigner
friendly, making them popular among expats. In Tokyo, these are Minato-
ku (Aoyama, Azabu, Roppongi, and Shirokane), Meguro-ku (Nakameguro
and Jiyūgaoka), and Shibuya-ku (Hiroo, Daikanyama, and Ebisu).8
There
are many international schools, shops, and restaurants with multilingual
speaking staff.
Yokohama, which is just outside of Tokyo and Japan’s second largest city,
is also a popular destination for expats.9
The city has more outdoor spaces
than Tokyo, and expats who want to live in a house are more likely to find
the accommodations they seek in this bustling port city.
Depending on budget, assignees can choose from service apartments
that include all furniture and living essentials, unfurnished apartments,
houses, or Japanese apatos (guest houses). When renting, locations that
are closer to the city center, popular areas, and train stations, as well as
newer properties, have higher rent. Also, rooms where residents can own
pets tend to be more expensive. At some apartments, a maintenance fee
called Kyoekihi or Kanrihi may be required in addition to the monthly rent.
This fee is commonly used for electricity and cleaning expenses, and must
be paid monthly with the rent.10
COST OF LIVING
Japan overall has gained a reputation of having an exorbitantly high cost of
living for expats and extended business travelers (EBTs). The findings of the
2015 Cost of Living Survey placed Tokyo as one of the world’s most expensive
cities to live for expatriates (number 11 out of 207).11
However, in recent years,
the city has become much more affordable. In 2014, Tokyo was number 7 out
of 209 countries surveyed, whereas in 2012, Tokyo topped the list.
It is possible to live well in Tokyo without straining the wallet. Salaries
are quite high, and the average Japanese standard of living ranks among
the highest in the world.12
In the city, it can be easy to find good deals on meals and other forms
of entertainment. Although prices for some things in Tokyo – like movie
tickets – are astronomically high in comparison to other cities, some
things like monthly rent are merely expensive.13
See Figure 1 for a list of everyday items and prices in Tokyo, Japan. See Figure
2 for a comparison of Tokyo’s cost of living compared to New York City.
5
www.expatarrivals.com
6
Kathleen Chu and Katsuyo Kuwako. “Chinese buyers are snatching up real estate, driving up prices in Japan.”
The Globe and Mail. July 2, 2015.
7
Ibid.
8
www.expatsguide.com
9
“Yokohama.” Japan-guide.com
10
www.expatsguide.com
11
“Guess Which Ranks as the Most Expensive City for Expats?” The Wall Street Journal. June 16, 2015.
12
www.expatarrivals.com
13
Julie Zeveloff. “The outrageous cost of living in Tokyo, the most expensive city in the world.” Business Insider.
June 14, 2012.
14
www.numbeo.com
15
Ibid.
FIGURE 1: PRICE OF COMMON ITEMS
IN TOKYO, JAPAN14*
USD EUR GBP SGD
Loaf of bread $1.24 1.12 € £0.81 $1.68
Bottle of wine $11.84 10.70 € £7.72 $15.99
One-way bus ticket $1.48 1.34 € £0.96 $1.99
Pair of sport shoes $69.88 63.16 € £45.56 $94.41
One-bedroom city
apartment (monthly rent)
$1,276.31 1,153.56 € £832.12 $1,724.28
Imported non-alcoholic
beer at a restaurant
$4.11 3.72 € £2.68 $5.55
*
Note: current currency conversions reported on June 25, 2015.
FIGURE 2: COST OF LIVING IN TOKYO
COMPARED TO NEWYORK CITY15
Consumer price index 76.71
Rent index 51.35
Groceries index 77.09
Restaurants index 56.03
Consumer price plus rent index 63.84
Local purchasing power 125.27
