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Cost of living in Japan vs Australia: Which is Cheaper in 2025?
Researching the cost of living in Japan vs Australia is the first step towards an exciting journey of teaching abroad.
Understanding how much it costs to live in popular countries day-to-day is important when working out how much to save to get your journey started!
If you’re looking at moving to Japan in the near future, or are simply wondering if Japan is cheaper than Australia, you’re in the right place!
Our handy guide will compare and contrast the cost of living in Japan vs Australia, featuring differences in accommodation, transport, utilities and other expenses.
Is rented accommodation cheaper in Japan or Australia?
It goes without saying that when it comes to rented accommodation, the cost of living in Japan will vary depending on what type you choose, and which area you live in.
For example, some inner city areas in Tokyo contain some of the most expensive real estate in the world – this is true across many of the big cities in Japan, but as Tokyo is the capital and largest city, the costs are magnified.
However, that’s not to say that everywhere in these big cities is expensive. Japan is densely populated, and many smaller apartments in a city like Tokyo can be found for good value. This differs somewhat from the Australia, where much of the more valuable land is in the large houses of suburbia, although in cities like New York this is not really the case.
On average, rent in Japan is cheaper than in Australia; monthly costs for a 1-bedroom apartment based on living in Tokyo outside of the center are around 53,000 ¥ (Aus $540) on average, Australia is around $2,075 (Australian Dollars) based on Sydney prices out of the center.
If you’re looking for spaces in the center of Tokyo or other popular areas, this can rise upwards of 87,000 ¥ Yen ($1,531) for a single person, but this price hike can also be expected in the center of bigger cities in Australia.
You can find more information on moving into an apartment in Japan in our guide.
Are utilities cheaper in Japan or Australia?
When researching living costs, it’s important to bear in mind day-to-day utility costs, as they might affect the size of the apartment or house you decide on, and whether you choose to live by yourself or split the cost with friends in a shared apartment.
Depending on your rent agreement, utilities may already be fully or partially included with your rent payment, but if they’re not, each one will need to be arranged.
Gas and electricity meters are checked once a month, and a “notice of consumption” showing your usage will be left in your mailbox. This notice indicates the amount to be billed to you for that month.
Out of all the utilities, electricity will be the most expensive at 8,600 yen ($88), with gas at an average of 4,066 yen ($41.50) and water at the smallest of 2,000 yen ($20.40). This is largely similar to the amount you can expect to pay in Australia, again largely depending on which state or city you are comparing with.
Of course, this also depends on what utility installations you have in your accommodation – in a typical Japanese apartment, gas will be used for cooking and water, although in more modern homes, induction heaters may be present.
Here are some budgeting tips for living in Japan, to help save even more money.
Are groceries cheaper in Japan or the US?
One of the most exciting parts about visiting Japan is the new food and drink options that are available in local supermarkets. If you choose to move here, you will soon find your favourites and get recommendations from locals and people you work with. On average, groceries tend to be cheaper than the Australian equivalent.
In 2025, Australians spend on average 21% more on their grocery shopping than people in Japan!
However, if you’re just picking up a few essentials on your way home from work, prices can vary.
Here’s a quick table to illustrate what we mean:
| Food Item | Japan (Yen/USD) | AUS (AUS D) |
| Milk (regular, 1 liter) | 268 ¥ | 2.73 $ |
| Loaf of fresh white bread (500G) | 298 ¥ | 3.04 $ |
| Rice (white, 1KG) | 778 ¥ | 7.93 $ |
| Eggs (regular, 12) | 288 ¥ | 2.94 $ |
| Local Cheese (1KG) | 1,396 ¥ | 12.83 $ |
| Chicken (1KG) | 980 ¥ | 9.99 $ |
| Beef (1Kg) | 1,700 ¥ | 16.80 $ |
| Apples (1KG) | 946 ¥ | 9.65 $ |
| Banana (1KG) | 330 ¥ | 3.37 $ |
| Oranges (1KG) | 640 ¥ | 6.65 $ |
| Tomato (1KG) | 893 ¥ | 9.11 $ |
| Potato (1KG) | 510 ¥ | 5.20 $ |
| Onion (1KG) | 450 ¥ | 4.59 $ |
| Cabbage (1KG) | 198 ¥ | 2.02 $ |
| Water (1.5 L) | 150 ¥ | 1.53 $ |
| Bottle of Wine (Mid-Range) | 646 ¥ | 6.59 $ |
| Beer (1 can) | 280 ¥ | 2.86 $ |
That said, local markets can offer good value, particularly in pre-cooked items, and such places are always great for their variety and quality of local delicacies.
Check out our guide to Japanese convenience stores for how to make the most of them.
Is dining out cheaper in Japan or Australia?
Japan has a whole host of restaurants for you to try, from traditional Japanese delicacies and sushi spots, to hamburger diners like the Japanese McDonald’s, to curry houses. There’s lots to explore when working as an ALT in Japan.
The good news is that, compared to Australia, dining out in Japan is relatively quite a lot cheaper. Of course, this depends on the restaurant you go to, with an average lunch out being 1,250 yen (£12.75) and average dinner 1,491 yen (£15.21), but a good restaurant may set you back around 3,826 yen ($39), with less formal chain restaurants costing under 1000 yen ($10.20).
If you’re in Osaka – the foodie capital of Japan – here are some cheap eateries to try.
In Australia, on average, you’d be paying double the price for dinner in a restaurant and a fast food meal, so you have every reason to go and enjoy your local eateries in Japan.
Are regular services cheaper in Japan than Australia?
In Australia, the average price of a haircut is around $50 – $60, and can rise above that figure in some areas.
This is more than in Japan, which offers a variety of barbering services. The nationwide average is 3,683 yen ($65), but it ranges from 2,616 – 4,461 yen ($26.68 – $45.50). The reason for this is not only to do with location – there are ‘quick-cut’ barbers in many places that offer great value and quality, such as QB House, which offers cuts for 1,200 yen ($12.24), as well as the inner-city barbers that offer a premium-standard service.
Is transportation cheaper in Japan than in Australia?
From bullet trains to metros and bus connections, if there’s one thing that Japanese people pride themselves on, it is efficient and punctual transportation. The public transport in Japan is well known for being reliable, clean and well-connected. When comparing prices, it’s around the same price as the Australian equivalent!
A one-way ticket for city travel typically costs the equivalent of $3 in local currency. For longer distances, you can use bullet trains, a fast and convenient way to get around the country. If you are regularly travelling between cities, there are lots of commuter passes available.
Here are some top tips for using the subway, railway and taxi services in Japan.
In terms of car travel, gas prices are more or less similar in Japan, 171.1L yen ($1.74) and Australia, although this again depends on which area you are comparing.
Is entertainment cheaper in Japan or Australia?
Both Japan and Australia are central hubs for entertainment, both providing great cultural experiences. But there are some notable differences we have explained below:
Japan centers its entertainment based on its fast internet speed, making it easy for streaming for indoor entertainment or video gaming to become a social event with your friends. A high-speed fiber optic connection usually costs around 4,455 yen ($45.44).
However, based on this, Australia uses more traditional entertainment and tends to be cheaper than Japan for things like cinema tickets, gym memberships and theater performances, which can vary case by case. Japanese cinema tickets are priced at around 1,900 yen ($20).
The last word on the cost of living in Japan vs Australia
We hope you have enjoyed our guide to the differences in the cost of living in Japan vs Australia. Both countries offer unique experiences, and it’s great to do some research into the living costs when you’re thinking of making the move to work as an ALT in Japan.
Fortunately, each one is affordable enough to live, work and play in with relative comfort. Even though in areas like groceries, it may seem like there is a substantial increase in price between Japan and Australia, a lot of this difference is made up for in other places, be it transportation, rent costs or connectivity.
As the cost of living in Japan is so much cheaper than in Australia, those looking to work abroad, either to travel or as an ALT, can afford to live a fulfilling lifestyle, even if the salary may not look too high when compared with Western standards.
Looking for more help when planning your big move to Japan? Get in touch with us today for more help on Japanese social customs, careers and more.
About the Author
Brian McDonough is a consultant at Interac, Japan’s largest provider of ALTs (Assistant Language Teachers). Originally from the US, Brian has lived in Japan for over 25 years, giving him a unique perspective on the cultural differences and challenges people face when moving to Japan. He has first-hand experience of working in Japan as an American.