ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintSite TitleTitle ChevronIcon Twitter
Transportation

Nagoya lures Tokyo defectors with $9,000 ahead of maglev launch

New rail to cut 350 km trip to 40 minutes, threatening to drain resources from region

A new magnetic-levitation bullet train will connect Tokyo and Nagoya in just 40 minutes.

TOKYO -- With a new train line slated to connect the 350 km between the Japanese capital and Nagoya in just 40 minutes, the prefecture that is home to Toyota Motor is offering up to 1 million yen ($9,300) to woo people away from Tokyo.

Aichi Prefecture worries that the new magnetic-levitation bullet train will make a trip to Tokyo so easy that Nagoya and its environs will become integrated into the capital's economic sphere, thereby draining human and financial resources away from the region. Aichi aims to counter this by attracting new residents through generous assistance and the promise of cheaper living. The train service will begin in 2027.

The prefectural government launched a website June 1 to match outside workers with 30 or so employers in Aichi. Families living or working in Tokyo's 23 central wards will receive 1 million yen for moving to Aichi, while single adults will receive 600,000 yen.

The prefecture aims to bring in around 40 people in the first year. Program participants will have to work for employers on the website and live in Aichi for five consecutive years.

Housing is significantly cheaper in Nagoya than in central Tokyo. Detached homes cost only half as much on average, while monthly rents are around 40% lower.

Families are expected to benefit the most from making the move. A working couple with two children can expect to earn 2.42 million yen more a year than they spend in Aichi, according to the prefectural government -- about half a million more than in Tokyo.

Since 2015, Aichi Prefecture has been granting tax breaks and other perks to businesses that move their headquarters from Tokyo. The city of Nagoya offers 1 billion yen in assistance. Localities are now turning their attention to attracting more people as well.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends April 30th

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media