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Some facts about renting rooms: situations different in Japan from other countries

Vol.1  How much is room rent approx.? How about the amount of starting salary?

Room rent in Japan

Average room rent in metropolitan area*1) is 62,900 yen/month (as of Jan. 2007, researched by Chintai-Jutaku Shinbun KK [trade publication]).
Generally in Japan, deposit, key money and agents’ commission are required separately from rent at time of contract; so renters must prepare cash of approx. 6 times of the rent . Also please note that light, fuel and water expenses are charged separately, and that furnitures and home electronics are generally not equipped; renters must think about such costs too. Commuting costs should be taken in consideration too, as one may not be able to obtain a room accessible to school on foot. Base fare of public transportation are : subway (Tokyo Metro) 160 yen, Toei Bus 200 yen, taxi 660 yen. Average commuting time in metropolitan area is 68.2 minutes (yr 2000, researched by MLIT). Because of high rental housing fee, Japanese people reside in the suburbs, and commute to schools and work places in city centers by crowded trains and buses.

  *1) Metropolis area includes: Tokyo and prefectures of Kanagawa, Saitama, Chiba, Ibaraki, Tochigi and Gumma.

Starting salary in Japan

Starting salary for postgraduate administrative employees is 222,050 yen /month, and for university graduate administrative employees is 203,960 yen/month (as of Aug. 2006, researched by Japan Economic Federation). Generally, bonus is paid twice a year separately from monthly salary, so; annual salary = monthly salary x 12 + 2 bonuses.
Advancement rate for high school is approx. 100%, and the same for university is approx. 50%.

Room rent and utility charges in Korea

Situation in Korea is as follows. Many university students in Seoul who are from the country home-stay, and the average home-stay cost in Seoul city (meals and utility expenses included) is 350,000 – 50,000 won (approx 40,000 - 60,000 yen).
There are two traditional ways of paying the rent; “Chon-se” and “Wolu-se”. According to “Chon-se”, renter entrusts a big amount of money approx. 50-80% worth of asset value of the rented estate, and stays in the estate during the contracted period free of charge. In the meantime, the owner invests the entrusted money and receives its investment profit as rent. When renter moves out, the entrusted money is returned entirely. Surprising system, isn’t it !? (This system, however, is lessening because of decrease of interest rate.)
By “Wolu-se”, renter entrusts 1,000,000 - 2,000,000 yen worth amount of money to the owner as deposit, and pays the rent separately. At move-out entire deposit money is returned. In Japan deposit money may not be returned entirely, so this difference should be fully explained to Korean students. As Japanese rooms for rent for students are generally unfurnished, Korean students may feel it inconvenient, different from most rooms furnished in Seoul. Public transportation in Korea is quite reasonable; for example base fare in Seoul for taxi is 1900 won, and for subway and bus, approx. 1000 won. So it should be kind to inform Korean students in advance about comparatively high transportation fee here.

Starting salary in Korea

Average starting salary for university graduates is1,880,000 won/month (as of Dec. 2006, researched by Korean Employers’ Association). Calculated by exchange rate of March 2007, this amount exceeds the starting salary of Japanese postgraduate administrative employees (222,050 yen). By comparison of national income per capita; Korea – approx. 2,200,000 yen / Japan – approx. 4,200,000 yen, starting salary in Korea can be said to be very high compared to that of Japan (sources from Nomura Research Institute and Korean Employers’ Association).

Room rent and utility charges in Malaysia

Next, let us look to Malaysia.
In Malaysia, a room space of approx. 1.6㎡ with a full bathroom can be rented at approx. 15,000 yen. If renters can share rooms, which is very common in Malaysia, spending per person will become even lower. At the time of contract, renters pay for a deposit (twice the amount of rent, which is fully returned at move-out) and an advance rent payment for 1 month. As most cases are direct contract with owners, agents’ commission is unnecessary. Advanced payment of rent is common with Japan, but for handling of deposit, it is different, as it may not be fully returned here. In case the owner has a package deal contract for utility charges (water, gas, electricity, etc.) renters should entrust a deposit for utility charges (8,000 – 10,000 yen) too. When city gas is not provided, renters themselves need to purchase a propane tank, and then the deposit for gas is not needed (In any case, deposit is returned at move-out.) Utility charges in Malaysia is very cheap (water fee is about 500 yen/month), and it seems necessary to explain Malaysian students that Japanese situation is different.

Starting salary in Malaysia

Average starting salary for Kuala Lumpur University graduates is approx. 60,000 – 90,000 yen/month. For students who studied in foreign universities, the amount is even higher; some case over 90,000 yen.

Room rent in Vietnam

Room rent for students in Vietnam is said to be around 3,000 – 5,000 yen / month.
Virtually most universities are located in Hanoi or Ho Chi Minh, so this amount is true of city area. As a reference data, in case of Japanese students’ home-stay in Hanoi, room rent is approx. 120 – 150$ including utility charges (source: JASSO [Japan Student Service Association]). When renting a room in Vietnam, no deposit and key money is needed as well as guarantor. Approximately, commission worth 1 month rent is paid for agents, and even if students do not sign up after all, some amount of commission must be paid. As such, situation on room rent is very different, and detailed explanation of the system in Japan is required for Vietnamese students.

Starting salary in Vietnam

Starting salary for university graduates is 819,000 dong(approx. 5,900 yen)(source: 2005, HP of Japanese Embassy in Vietnam, Economical Trends of Vietnam).
Average monthly income of Vietnamese people was 32.3$ for 2003 – 2004, increasing 36% from 2002 (source: 2004, Vietnam Statistic Bureau).

Room rent in Taiwan

Average room rent in Taipei is said to be approx. 20,000 – 30,000 yen. Room sharing among students is very common, and it is often the case that students become roommates with someone new. Home-stays are common, and in such cases students sign up with owners directly. Generally, however, room search is requested to agents with the commission of about amount of half of a month rent. Deposit is said to be approx. 2 month rent, and usually is fully returned at move-out. This point should be clearly explained to Taiwanese students.

Starting salary in Taiwan

Starting salary for university graduates in Taiwan is said to be approx. 100,000 yen.

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Vol.1  How much is room rent approx.? How about the amount of starting salary?
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