Tokyo cost of living

April 10, 2007 6:08 AM

I'm thinking about a relocation from London to Tokyo. How does the cost of living compare between the two?

I've been offered an opportunity with my company for an internal transfer to Tokyo. I'm trying to get an idea of what I should expect in terms of cost of living differences. Most of what I've found seems to say that Tokyo and London are both comparably expensive. However, the Tokyo salary I'm being offered is around 15% less than what I'm making in the UK.

So, the question: Is Tokyo 15% cheaper than London? I can't help but think I'd be taking a pay cut. Any good recommendations for Tokyo cost of living/relocation sites would be welcome as well.

posted by rsk to work & money (10 comments total)

See this.
posted by Clyde Mnestra at 6:27 AM on April 10, 2007 [1 favorite has favorites]

Is Tokyo 15% cheaper than London?

From about a weeks’ experience in both places, and from talking to expats and locals; yeah, about that. The standard of living seems to be better in Tokyo though; more efficient and more available public transport, non-obsolescent housing stock for reasonable rents, local-style food is cheap and good.

Hmm, though, you will need to buy suits if you’re working there and you don’t wear them already. Factor that in.
posted by Aidan Kehoe at 6:32 AM on April 10, 2007

I have no idea if Tokyo is cheaper than London or not, but the 15% pay cut (and that's exactly what it is) is very strange if your company is sending you on assignment overseas.

What you haven't mentioned is whether not your company will be assisting with:

- airfare to and from Japan
- relocation assistance (moving your stuff)
- monthly living allowance while you're in Tokyo
- transit pass (most companies in Japan cover their -employees commuting expenses)
- assistance with rent

Although your company should be offering all of the above, you will need help with rent. While monthly rent may be similar to London, getting into an apartment in Japan is extremely expensive.

You will have to pay up front:

- first month's rent
- last month's rent
- damage deposit
- gift to the landlord
- realtor's fee

The damage deposit is rarely returned.

So, if you're worried that you may be taking a pay cut, and if your company is not offering to help with relocation and cost of living expenses, well, you will be taking a pay cut.

But if you're interested in living and working in Japan, this may be a good opportunity. There's plenty of work in Tokyo that probably pays better than what you make now, and this could be a good stepping stone.

Check out Daijob.com (or Google Terrie Lloyd) for more info.
posted by KokuRyu at 8:08 AM on April 10, 2007

"...the Tokyo salary I'm being offered is around 15% less than what I'm making in the UK."

Ok, a few points here. I'm a long term American ex-pat, and have spent about one third of my adult life living & working out the US.

I assume you're NOT going as a full ex-pat, but accepting a local contract? Full ex-pat contracts will typically cover housing, home leave, education for children, perhaps even going so far as to provide a job for a partner.

Under these circumstances most, if not all, of the risks & uncertainties KokuRyu mentions above are negated.

However if you're considering a local contract then at the minimum you should insist upon a short term secondment, at the firms expense, to research many of these questions yourself, first hand.

Also I'd recommend that, should you decided to accept, that you get an op-out clause inserted in your contract; the honeymoon period is well documented, and many ex-pats find themselves hating a place after six months or so.

Other issues would include tax help (get them to cover the first year at least), as well as full assistance with and clarity on your employment visa, etc.

I had two buddies of mine that got pulled out of Tokyo with very, very little advance notice (days!) when the bank we were working for closed up the APAC shop. The visa they were on was tied to their jobs, so they couldn't change if they wanted to. So you'll need to know all the details regarding your employment paperwork.

If you do have to negotiate these points with your employer, remember you are doing them a significant favour - although they will try to present it the other way around (I would from that side of the desk). You are a known player, and are significantly reducing their risk of recruiting and bringing an unknown agent into the firm. On the flip side, you're increasing your long term value to them, so don't be too aggressive on the negotiation side. Think win/win.

I wish you well! There is nothing like the ex-pat experience to broaden your mind.
posted by Mutant at 10:33 AM on April 10, 2007

Everybody else's advice is really good. I'll also add that it is difficult for foreigners to rent an apartment. While there are laws against housing discrimination, you are subject to the whims of the landlord if he wants to rent to you or even consider foreign tenants.

It is extremely difficult to obtain housing on your own so if you can have your company arrange for an apartment, that would make things so much easier. Consider looking at websites for expat living in Tokyo. They can direct you to housing that is more friendly towards expats.

My sister lives and works in Japan and she had considered taking a job in London. She balked at the cost of living there -- which means a lot considering she thinks Tokyo is terribly expensive. She lives in a 800 sq. ft apartment for which she pays $1000 USD. She had to buy her own appliances so factor that into the cost of renting!!

I'm very excited for you on transfering to Tokyo. It is an exciting city and I wish you the best.
posted by loquat at 8:04 PM on April 10, 2007

Thanks for the insights. Just to clarify this would be a local contract as Mutant suggested. All of the obvious points are covered in the offer - temporary housing on arrival, visa, tax assistance, etc.

I've also done some research into the tax situation in Japan and it looks like my tax burden would be significantly less than what it is here in the UK which makes the salary figure a lot more appealing.
posted by rsk at 1:30 AM on April 11, 2007

Well, I've been in Tokyo for 7 years with a 6 month break in the middle. I have never been to London. From what I have heard from co-workers and read, it should be cheaper in Tokyo.

Everything I could/would say is been pretty much covered up top, but as far as apartments go I would recommend the Kodan system. You pay 3 months rent and don't deal with a lot of the other B.S. Plus, they are nice to gaijin. I had no problem getting my apartment at the beginning of my second term here. I moved in about 2 week after I got here.
posted by m3thod4 at 1:59 AM on April 11, 2007

Do not hesitate going. You will have a great time and meet lots of interesting people.

I would kill to go back and work in a more western style work place.
posted by robofunk at 8:54 AM on April 11, 2007

loquat writes "I'll also add that it is difficult for foreigners to rent an apartment."

I've never found that to be the case. However, I'm white and speak Japanese well, and all anecdotal evidence says that this will vary based on skin color and fluency.

Rsk, you mention "temporary housing". When you look for permanent housing, what may be difficult, though it isn't really a "foreign" related issue, is that for most apartments (not all) you need a guarantor, and becoming a guarantor is a very risky position: they're responsible for any financial burden you fail to pay off on the apartment, with no upper limit. So if you don't pay rent for two years (the law generally protects renters over landlords, so this can happen, and indeed did to a friend who was renting out an apartment to a non-paying deadbeat. I think it took him about a year to get the court order to kick out the tenant), and then rip the apartment apart and run, the guarantor will have to pay all the back rent and repair bills. If you have lived in Japan for a long time, you probably have good friends who trust you enough to put their financial neck on the line for you, and will become your guarantor. If you don't, as a new foreigner fresh off the plane, you will have a hard time finding an apartment. There are still options, but they are far more limited.
posted by Bugbread at 9:26 AM on April 11, 2007

I'm now based in London but have lived in Tokyo in the past. I have also traveled back on several occasions and therefore aware of the cost differences between both cites. The issue with living in Tokyo is that like most capital cities there are various ways to settle. When I compare cost of living between a typical Japanese person in Tokyo and typical Londoner, then Tokyo is actually cheaper and overall quality of life is better.

However as a 'gaijin' or foreigner living like Japanese can take time - it took me at least 3 - 4 months to settle nicely. And one can of course end up in super trendy downtown Tokyo where prices of everything may well be higher than London.

Much depends on the amount of support you have when re-locating and where you end up living in one the world's largest metropolitan areas. I lived in the west of Tokyo, 10 mins by subway from the center and started my stay in a 'Gajin' house - Living in Japan Housing .

Well worh the visit! I wish you good luck!
posted by pwp at 10:01 AM on April 15, 2007