Why is Japan So Cheap?

Yes, after over 30 years of deflation, Japan has now become one of the most affordable countries in the world!
If you're interested in Japan, you must check out my newsletter: www.konichivalue.com/
00:00 Intro
00:05 Japan's Bubble Economy
00:49 A Big Mac in Japan
01:21 Hotel Prices
01:50 Restaurant Prices
02:35 Cost of Living
04:19 Service Quality
04:57 Skiing in Japan
06:35 Outro

[@DisasterxUs]

Japan is not cheap, the West is just prohibitively expensive. It also depends are what you are wanting to buy. For example, electronics are much more expensive in Japan. Intercity train tickets can be quite expensive in Japan too. That said, price in relation to quality is much MUCH better than the US. In the US you pay more, and get much much less. Particularly with food.

[@konichivalue]

Sorry to burst your bubble, but electronics are cheaper in Japan than in all of Europe and most of the US. The iPhone used to be cheaper in Japan than the US before the price hike in December, but prices are still very comparable. In regards to everything else, Japan is definitely cheaper, even PPP adjusted

[@DisasterxUs]

@konichivalue you're not bursting my bubble, I'm speaking from experience for the last several years. Buying any PC parts, accessories or a PC itself from a big retail store is easily 2 -3× more expensive than just buying online. Japan's physical store prices simply can't compete with just buying things online is my point. Not trying to compare to Europe or wherever else. Of course Europe is expensive.

[@namaefumei]

@@DisasterxUs agree, if you are trying to buy something with yen from outside of Japan, it's very expensive now Same with vacation abroad, omg it's unbelievably expensive.

[@konichivalue]

@@DisasterxUs most stores price match with Amazon, but specifically for PC parts, you are right that Japan is not that competitive (as PC gaming is a relatively niche market here). However, go around Akihabara to find spare parts of Playstation or Nintendo consoles, and you'd be surprised how cheap they can go for.

[@linuxman7777]

It used to be back in 2018 on my first trip to Japan, that almost everything in Tokyo was more expensive than my 2nd tier US city. A night at Karaoke cost like $13-16 here in the US but 3000yen in Japan or about $28. But now the Japanese price in Yen is the same, but the US price is now $20 which puts it in line with Tokyo at current exchange rates. The difference is also that the US often gives larger sizes and portions for said price. I remember always being disappointed with the size of things in Japan, but now with the yen being cheap, I am able to buy the larger portion sizes. I actually gained weight my most recent trip to Japan, whereas I lost weight last time.

[@flamoonigirlolivia]

:) Exactly, when I went twice last year, in different seasons, I had so much money left over I was so surprised! So thank you for explaining it to everyone :)

[@auwz66]

I travelled around Japan for 2 months last year. It was the best experience of my life. Such warm people, easy to get around and of course great value. We had some amazing meals for under £5 per person. Food of that quality in the UK in a major city would be 5 times the price. Fuel is cheap. Airbnb is cheap. The only "high cost" is the cost to fly to Japan. Once you are there its incredible. I spent a similar time in Thailand and the cost here is at least 25% more than Japan.

[@emperorlelouch5696]

THis is absolutely incredible! I've always wanted to go to Japan ever since I was a kid. Now all I need is a job and some money.

[@konichivalue]

You could always try to work in Japan :)

[@arzelaascoli6765]

Thanks for the video. Regarding the outro, why do you want people to book a trip to Japan?

[@konichivalue]

Even though I know it will be annoying to walk among hordes of tourists, I wholeheartedly want everyone to experience just how amazing Japan is.

[@arzelaascoli6765]

@@konichivalue I think it'd benefit the Japanese economy ultimately, too which is a good thing.

[@shpeen8835]

For North Americans, expensive to get there but very reasonable once you arrive. I paid 1250 CAD for Premium economy in 2022, couple months ago Oct 2023, regular economy was 2300 CAD. Same flight/airline/ time of year. My first time to Japan 1995 , a pint was maybe 500 Y max, now usually 750 Y so slight inflation over 30 years... Dont even ask about my country, costs have risen so much , 20$ is the new 100$

[@AGS363]

Ok, look. I am already planning to visit Japan next year for the World Fair. No need to sell it even more...

[@djackmanson]

I watch a few Japanese TraveAndFoodlTubers, and the price of many low-end restaurant meals and hotel rooms seems remarkably cheap compared to Australia. Of course that doesn't say much about the cost of living for an everyday person in Japan, but it's interesting to me.

[@konichivalue]

Compared to both Sydney and Melbourne, Tokyo provide a higher quality of life and affordability for the average Tokyo resident.

[@user-hb2eq1sk7n]

yes japan used to be more costlier, and eating out is cheap so service is excellent because they want you to eat out. Pure economics.

[@konichivalue]

Isn't it wonderful?

[@Latiosx123]

I think most of this is contributed by depreciating Yen against the dollar.

[@DisasterxUs]

it is, but Japan is also experiencing inflation of its own, so prices in Yen are going up too. For example, a buffet that cost 2200 yen five years ago now would cost 3000.

[@konichivalue]

It's part of it, but 34 years of deflation while the rest of the world has been fighting inflation is definitely the biggest factor

[@rod9829]

It’s easy to spend money in Japan, and things add up (as a tourist)

[@konichivalue]

That's how they get you :P To be honest, because of Japanese consumers incredible price sensitivity, stores and restaurants go above and beyond to uppsell you minor things like additional services or menu items just to break even

[@namaefumei]

Well salaries are extremely cheap so it's not cheap if you live in Japan. If you bring dolar from USA or euro from Europe, you'd think it's cheap.

[@konichivalue]

Let's look at the numbers: If we look at the major metropolitan areas, while the average salary in Tokyo (¥6.2 million or $57,000) is lower than in New York ($72,000) and Los Angeles ($60,000), Tokyo's cost of living paints a different picture. Rent in Tokyo takes up about 25% of the average salary, compared to 50% in New York and 46% in LA. Additionally, monthly food costs are around ¥30,000 ($275) in Tokyo, significantly lower than the $400-$500 in NY and LA. Public transport is also cheaper, at $90 in Tokyo versus $120 in NY and over $200 in LA.

[@namaefumei]

@@konichivalue I don't know about numbers. I don't trust them. I have been living in Japan for 8 years and I rarely see salaries over or near 6m. Almost everyone starts with 4m or less and stays there for 3 4 years. Even most government workers start with less than 4m. I hire people here in different kinds of companies and trust me I know the REAL numbers. Even in IT I see people with 5 years of experience and getting 5m or close to 6m. Yes there is minority who gets a lot because they work for global companies. I have 4 teacher friends under 30 years old and they all started 4.2m, kindergarten, elementary, and 2 highschool teachers. 30k for food? Come on man, are you joking? You can only eat some rice and sides with that. We make total 5.5m with my wife, living outside of Tokyo. 80k rent normal house, frugal life and we can't afford a lot lot of stuff. We can't even start thinking about having children. Yen is very weak, prices went up, buying power decreased...

[@konichivalue]

@@namaefumei Ok, so let's factor in what you believe to be the average, 4.2m JPY/y: Rent in Tokyo now takes up about 36.9% of the average salary, compared to 50% in New York and 46% in LA. Monthly grocery costs in Tokyo are around ¥30,000 ($275), which is comparable to NY and California at about 8.6% while it's 7.5% in NY and 9% in LA, where food costs average $450 per month. However, restaurant costs in Tokyo are often less than half of major US cities. Public transport in Tokyo is about $90 (but almost always covered by the employer), represents approximately 2.83% of the average salary, which is more expensive than NY's, but the system is astronomically better. In most other US cities, the number will look downright awful due to cars being necessary for commuting. Of course, you can find some European cities that have comparable prices to Japan, but then you will most definitely have the same, or lower, salaries.

[@namaefumei]

@@konichivalue what are you on about? I don't care about NY or anywhere else. I am talking about Japan. I don't believe, I know. Do you even live in Japan? I have salaries of 30k people from different backgrounds, ages, fields... All my friends and groups I am in, we all feel this. Actually nevermind, forget it. No point arguing. You do you, I do me.

[@franklinblunt69]

I mean no offense to you, but I wouldn't prefer a Big Mac or McDs

[@konichivalue]

I mean it's just an index of the overall cost of the country. If you prefer something healthier, Osho has $5 lunch menus including rice, natto, grilled salmon, radish, pickled cucumbers and miso soup

[@jackwang6016]

I love Big Mac.