Croatian Astonished by Tokyo Housing Affordability, Contrasts with Croatia's Market

A Croatian man's post detailing his surprisingly affordable apartment purchase in Tokyo has sparked widespread discussion among his compatriots, highlighting stark contrasts in housing markets and national attitudes towards property.

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People, is this possible?

He shared his amazement on Reddit, revealing that he bought an apartment in Tokyo for approximately $1,800 per square meter with a mortgage interest rate of just 1.1%. This purchase allowed him to save money each month, a stark contrast to his experiences in Croatia. He wryly commented, "Forget Tokyo, Virovitica is Monte Carlo compared to this. We are truly a retarded nation; we love it most when they tear us apart."

Fellow Croatians in the comments offered various explanations, with many pointing to a fundamental difference in how real estate is perceived. In Japan, property is often treated as a depreciating asset, similar to cars, losing value over time and usage. This contrasts sharply with the Croatian mindset, where property is viewed as a sacred investment with an expectation of continuous price increases.

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Forget Tokyo, Virovitica is Monte Carlo compared to this. We are truly a retarded nation; we love it most when they tear us apart.

Further insights revealed that Japan's economic stagnation over the past three decades has led to extremely low interest rates to stimulate spending. Additionally, there is a cultural practice of building new homes designed to last only a few decades before being demolished and rebuilt, partly due to earthquake risks. This makes older, used properties less desirable and significantly cheaper. In Croatia, however, property prices have nearly doubled in recent years, with average prices around 2,900 euros per square meter, and mortgage interest rates hovering around three percent, making the Japanese rate seem like "science fiction."

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Partially, the reason here is that a house/apartment in Japan is viewed as a depreciating asset, not as a holy grail of investment like it is with us.

Some users shared personal stories of moving abroad for better financial prospects. One individual detailed how their income quadrupled after moving to Germany seven months prior, allowing them to live in a similarly sized apartment while paying half the rent and utilities. They noted that daily expenses like food are cheaper, and overall living costs are lower, enabling them to afford dining out, travel, and savings, luxuries they had to meticulously budget for in Croatia.

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The Japanese have figured out that when the number of people in the country falls, property prices miraculously fall too; we haven't gotten there yet.