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World-famous Yokohama lies on a peninsula in Tokyo Bay, approximately 30 kilometers (16.2 miles) from Tokyo, the capital of Japan. Home to over 3.7 million people, Yokohama is Japan's second largest city. The city has built its economic base largely through business with foreign countries since the early days of modern Japan. Today, Yokohama is Japan's third-largest trading port in terms of volume. The city enthusiastically welcomes foreign enterprises, international gatherings, and a wide variety of internationally oriented events.
Since the opening of its port in 1853 by the steal, coal-powered ships of Admiral Perry, Yokohama has been the home to many foreigners and has evolved a supportive environment to promote a comfortable life. There are currently 9 non-Japanese schools including 3 international schools in Yokohama as well as medical services that are offered in foreign languages. As of 2005, Yokohama has approximately 68,500 foreign residents and there are many internationally-minded citizens.
Comparative Analysis between Yokohama and Tokyo
Prospective businesses looking to enter the Japanese market inevitably compare Yokohama with Japan’s capital city, Tokyo. Yokohama offers many significant advantages over Tokyo.
Two important factors that we believe merit consideration are Yokohama’s outstanding human resources and relatively low real estate rental and purchase pricing for both residential and business uses.
Outstanding Human Resources
The Yokohama service area (Kanagawa Prefecture) hosts approximately 320,000 researchers and engineers. In fact, Yokohama/Kanagawa ranks ahead of Tokyo and number one in Japan in this important asset.
| Number of Scientific Researchers and Engineers |
| |
Japan |
Yokohama/ Kanagawa |
Shinjuku/
Tokyo |
| Scientific Researchers |
152,342 |
24,487 |
17,968 |
| Engineers |
2,523,885 |
318,513 |
319,309 |
| Total |
2,676,227 |
343,000 |
337,277 | Source: National Census 2000
Real Estate Rental Costs
The average cost of renting office space in Yokohama/Kanagawa (as of May 2005) is 1.46 USD less than in Tokyo. For a 10,000 square feet office space, that’s a potential savings of 14,600 USD per month!
| Average Monthly Rent (per sq. ft.) |
| Business Districts in Yokohama |
342.90 yen ($3.12) |
| Business Districts in Tokyo |
500.38 yen ($4.55) | Source: Miki Shoji Co., Ltd. (November 2005) (1USD=110 yen)
Real Estate Purchase Costs
The lower purchase price for land in Yokohama versus Tokyo is significant. Yokohama’s commercial per square foot purchase price is roughly one-third (1/3) that of Tokyo. Lower purchase prices give buyers more flexibility to get exactly what they want without having to compromise based on price.
| Purchase price for Yokohama and Tokyo for various land use permits (ft²). |
| |
Commercial |
Quasi-industrial |
Industrial |
| Yokohama |
39,790 yen
($361.73) |
19,445 yen
($176.77) |
11,631 yen
($105.74) |
| Tokyo Metropolitan Area |
148,979 yen
($1354.35) |
33,584 yen
($305.31) |
23,839 yen
($216.72) | Source: Published Land Prices (January 2005) ($1US=110yen)
*For purposes of this comparison, Commercial means office space with no manufacturing; Quasi-industrial means office space with light manufacturing; and Industrial means heavy manufacturing.
Accessibility to Tokyo
The public transportation system in Japan is very well developed. Yokohama is served by the subway train system as well as the Shinkansen (Bullet Train), Japan’s famous high speed transit system that shrinks the distance between cities. Major business areas in Tokyo can be reached within half an hour from Yokohama.
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