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 gave Tokyo 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 TOKYOFACTS

> 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 TRENDSIn 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 2020Due 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 CITYTokyo 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.html4 Ibid.

Baker’s DozenCustomer Satisfaction Ratings

2015 WinnerRELOCATION

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 HOUSINGThe 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 LIVINGJapan 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.com6 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.com9 “Yokohama.” Japan-guide.com10 www.expatsguide.com

11 “Guess Which Ranks as the Most Expensive City for Expats?” The Wall Street Journal. June 16, 2015.12 www.expatarrivals.com13 Julie Zeveloff. “The outrageous cost of living in Tokyo, the most expensive city in the world.” Business Insider.

June 14, 2012.14 www.numbeo.com15 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 NEW YORK 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

APPS TO HELP YOU NAVIGATE YOUR NEW CITY

World Customs and Cultures – An at-a-glance reference, this app covers the discreet and not-so-discreet cultural differences a business traveler may encounter in 165 countries.

Japanese Pocket Lingo – Translate English into Japanese on the go.

Imiwa – Use this online Japanese dictionary app to look up words by simply speaking into your phone.

TripAdvisor – Research restaurants, hotels, activities, and more.

Tokyo Rail Map Lite – Track metro lines and instantly find the fastest route.

Tokyo Travel Guide – Use this travel app for maps, in-depth travel content, and more – all accessible without an Internet connection.

Lonely Planet Tokyo Travel Guide ($3.99) – Browse hundreds of recommended places to visit and things to do, along with GPS tracking and offline maps.

GLOBAL EXPERTISE FOR SUCCESSFUL RELOCATIONSGraebel worldwide offices are staffed with global relocation industry experts who are ready to help companies and their assignees on long- or short-term assignments in Tokyo – or anywhere on six continents. As the industry leader, Graebel proactively provides pre-departure to ongoing assistance, helping clients’ employees remain productive throughout the assignment. For answers to questions concerning relocations to Tokyo, contact Graebel today.

Relocation Services Transformed on Six ContinentsGlobal Employee & Office Relocation, Move Management & Workplace Services

APAC Headquarters: Singapore 4 Shenton Way | SGX Centre 2, #29-01 Singapore, 068807 +65.6302.5111

World Headquarters: USA 16346 Airport Circle | Aurora, CO 80011 USA +1.800.723.6683 | marcom@graebel.com

EMEA Headquarters: Czech Republic Malé nám stí 459/11 110 00 Prague 1, Czech Republic +420.225.982.819

The information contained in this document represents the current research of Graebel Companies, Inc. on the issues discussed as of the date of publication. This document is for informational purposes only and does not serve as an endorsement of products nor providers. Graebel cannot guarantee the accuracy of any information presented after the date of publication.

© 2015 Graebel Companies, Inc. All rights reserved. All trademarks are property of their respective owners.

CITY SYNOPSIS:TOKYO

HOUSTON

TOKYO