Tokyo, previously considered one of the world’s most expensive cities, has become one of the most affordable major cities among developed economies, according to a Deutsche Bank study.
Rent for a three-bedroom apartment in the Japanese capital is about a quarter of the cost of similar housing in New York. Buying an apartment costs about one-third as much as in Hong Kong or Seoul, and nearly half as much as in London.
Dinner for two in Tokyo costs less than in Warsaw or Prague, and is about three times cheaper than in Zurich and New York. Japan also turned out to be the cheapest of the markets surveyed for buying an iPhone, including taxes.
The main reason for the change in Tokyo’s international standing was the weakening of the yen. Since 2012, the Japanese currency has lost about 51% of its value against the dollar, while the cumulative increase in domestic prices was significantly lower.
As a result, the estimated price level in Japan based on purchasing power parity fell from 125 points in 2012 to approximately 60 points.
Japan has become more affordable for foreign tourists and those earning income in dollars or euros. However, for the local population, the weak yen means higher costs for imports and travel abroad.
an Affordable Metropolis, Tokyo
