In Tokyo you can enjoy both! Coffee at 75 cents and Condo at US$ 8,200 psf

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Abstract

o is still hot and now, at last, we see US $8,200 per square feet price in central Tokyo (40 Million Yen per Tsubo), but we can buy 3 packed Natto at US70 cents (98 Yen) and you can enjoy coffee at US 75 cents (110 Yen). If this coffee price will be the same as in the US (US$ 5 per cup), I will immediately report you.</blockquote>OECD reports that Japan’s wage has not increased for 30 years (the inflation-adjusted figure is still -3.1% from the previous year).<figure id="811d"><img src="https://cdn-images-1.readmedium.com/v2/resize:fit:800/1*mFfzfwZ9LY3RxkH08JLoXA.jpeg"><figcaption>Source; OECD</figcaption></figure>But, GINI coefficient figures show that Japan is still a very equal society (https://www.businessinsider.com/gini-index-income-inequality-world-map-2014-11).Is this strange? Yes, it is. But Japan is still surviving. We are socialism-minded people with a capitalist system. The Opposite is China; They are very capitalism minded people, but the government says that we have a communist system. The founder of the PRC, Mao Zedong is a genius who knows the reality of Chinese mentality and set a communist system to unify China.How about Japan? I do not think that only

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winning in global competition is an answer. “Surviving” may also be the way of living for us, which the current situation tells us, I observe. Only 17.1 % of Japanese have a passport which illustrates well how this COVID-19 pandemic makes Japanese more domestic mindset.Weaken Yen emphasis this mindset now. But most of the buyers at US$8,200 psf flat in Tokyo (much higher than Deep Water Bay Road in Hong Kong, or Chelsea in London) are also Japanese. Is this balanced? or an unbalanced situation for Japan?<figure id="d445"><img src="https://cdn-images-1.readmedium.com/v2/resize:fit:800/1*nqgv9aolZrUStVkPbZvObA.jpeg"><figcaption>Credit; Hiro Nakagawa, a view from The Okura Tokyo Prestage Tower</figcaption></figure>At the last bubble in the late 1980s in Japan, the Ministry of Finance took action to banish the bubble (with a short-term interest rate rise from 2% to 8% in the short term) and the whole economy clashed and make “lost 30 years”. This time, I personally think that the government would not take the same action at all, as we learn from the lesson.Then, how we can survive? This is the major thesis in my Zemi class as well. Class let us continue our discussion.</article></body>

Coaching from Sub-Zero for post-pandemic / Session 6, Spring 2023

Credit; Hiro Nakagawa @ Minami Azabu, Tokyo

Japan is in the middle of the rainy season, but enjoyable to walk about the town, here in Tokyo, no homeless nor no riots like in France, Since last Saturday, Hong Kong has handover holiday and the US has an Independent Day weekend, and we see many inbound family travelers, who enjoy Japan.

Yes, we enjoy safety here.

As a street economist and strategist, one of my major tasks is to report a real Japan to friends outside Japan. My best Hong Kong friend always asks if the wage has been increased or if we see inflation here in Tokyo. My definitive answer is ;

We have seen some rise in wages but my students (20s) do not realize that life has been changed. The residential market in Tokyo is still hot and now, at last, we see US$ 8,200 per square feet price in central Tokyo (40 Million Yen per Tsubo), but we can buy 3 packed Natto at US70 cents (98 Yen) and you can enjoy coffee at US 75 cents (110 Yen). If this coffee price will be the same as in the US (US$5 per cup), I will immediately report you.

OECD reports that Japan’s wage has not increased for 30 years (the inflation-adjusted figure is still -3.1% from the previous year).

Source; OECD

But, GINI coefficient figures show that Japan is still a very equal society (https://www.businessinsider.com/gini-index-income-inequality-world-map-2014-11).

Is this strange? Yes, it is. But Japan is still surviving. We are socialism-minded people with a capitalist system. The Opposite is China; They are very capitalism minded people, but the government says that we have a communist system. The founder of the PRC, Mao Zedong is a genius who knows the reality of Chinese mentality and set a communist system to unify China.

How about Japan? I do not think that only winning in global competition is an answer. “Surviving” may also be the way of living for us, which the current situation tells us, I observe. Only 17.1 % of Japanese have a passport which illustrates well how this COVID-19 pandemic makes Japanese more domestic mindset.

Weaken Yen emphasis this mindset now. But most of the buyers at US$8,200 psf flat in Tokyo (much higher than Deep Water Bay Road in Hong Kong, or Chelsea in London) are also Japanese. Is this balanced? or an unbalanced situation for Japan?

Credit; Hiro Nakagawa, a view from The Okura Tokyo Prestage Tower

At the last bubble in the late 1980s in Japan, the Ministry of Finance took action to banish the bubble (with a short-term interest rate rise from 2% to 8% in the short term) and the whole economy clashed and make “lost 30 years”. This time, I personally think that the government would not take the same action at all, as we learn from the lesson.

Then, how we can survive? This is the major thesis in my Zemi class as well. Class let us continue our discussion.

In Tokyo you can enjoy both! Coffee at 75 cents and Condo at US$ 8,200 psf

How to re-design this country is an issue, but we enjoy this unique balance? or unbalanced status?

Coaching from Sub-Zero for post-pandemic / Session 6, Spring 2023