Kazuki Hirata, 31, lives in a 9-square-meter room in Tokyo, Japan. The tiny “matchbox” space has a floor area roughly the size of six tatami mats – a traditional Japanese mat – but he can still stay here for a monthly rent of 83,000 yen (equivalent to 14 million VND).
The room was so cramped that Hirata had to sleep diagonally across the mattress to stretch his legs, and every time he went to the bathroom he had to open the door a crack to avoid hitting his knee on it. “Once I moved in, I thought the room wasn’t too small,” he said.
Despite the inconvenient living conditions, Hirata did not mind because his place of residence was only a short walk from his workplace. As a bartender, he often finished work in the middle of the night, when public transportation had stopped running.
Meanwhile, the tiny apartment of 28-year-old Mark Lorenzo Permalino in Makati City - the bustling financial center of the Manila Capital Region, Philippines - has an area of 22 square meters, more than twice as large as Hirata's apartment in Japan.
The young man dreams of upgrading to a larger two-bedroom apartment in the next two years. But the biggest hurdle is still finance. Unfurnished one-bedroom apartments in luxury condominiums like Chino Roces Avenue in the Philippines start at around 12 million pesos (equivalent to 5.2 billion VND). For now, Permalino is content with his small room, adding rounded corners to cover the sharp corners of the stairs in the low space to avoid hitting his head.
Hirata and Permalino are typical examples of many young people in some of Asia's major cities today. With housing costs still a big challenge, they are forced to find ways to overcome and adapt to living in small spaces to save money.
Learn to adapt
Hirata’s apartment is small but still has all the essentials, including a laundry room, bunk beds, and a small single-kitchen. The apartment is about half the size of a typical studio apartment in Tokyo, but the rent is about 20% to 30% cheaper, accounting for nearly a third of Hirata’s income.
According to data from real estate services firm Savills, the average rent for apartments measuring 15-30 square metres in five central districts of Tokyo has increased by nearly 20% since 2016.
With inflation and rising property prices, there may be more small apartments to keep rents affordable, said Tetsuya Kaneko, managing director of Savills Japan.
However, Hirata feels that his apartment is “a bit expensive”, although the small size also helps him cut down on other expenses. With limited space, shopping becomes impractical, and necessities are the only things he can bring home.
Hirata doesn't buy new clothes, instead adopting a capsule wardrobe model, which means only a few minimal, easy-to-match outfits. "Basically, I wear the same outfit when I'm at work and at home," Hirata says. By minimizing unnecessary purchases, he maximizes the use of each item.
Cleaning is also easy. One of the benefits of limited space is that housework is simplified, saving him time and effort. For example, he uses a handheld vacuum to clean the attic and then uses a wet mop to clean the floor.
In addition to the savings and convenience, Hirata found himself enjoying the “coziness” of his micro-apartment. “I like the feeling of being cramped, it’s peaceful,” the 31-year-old said. And he’s not the only one pursuing this lifestyle.
Several Japanese developers, including Spilytus, are building micro-apartments in sought-after areas like Ebisu and Nakameguro in Tokyo, catering to the tastes of young people who prefer central locations at reasonable rents, according to Spilytus President Keisuke Nakama.
Spilytus has been developing matchbox-style apartments for a decade. The company reports a 99% occupancy rate across its more than 100 properties, with the majority of tenants under the age of 30.
Designed specifically for singles, the micro-apartments are typically rented for about two years. But Hirata, after four years, has no plans to move unless he gets married or changes his main job.
Efforts to realize the dream of settling down
The plan to change houses was in the plan, but Permalino was determined to make it happen. The young man faced the problem of housing costs in the capital Manila of the Philippines, where the average price per square meter of a new apartment is twice as high as in other areas.
The average price of a condominium here is 25 times the median annual household income – the fifth highest ratio among cities listed in the Urban Land Institute's 2024 Asia-Pacific Home Ownership Index.
Marife Ballesteros - Vice President of the Philippine Institute for Development Studies - said that the lowest house price today is around 4 to 5 million pesos (equivalent to 1.7 billion VND to 2.1 billion VND). "To buy a house, you must have an income of around 95,000 pesos (equivalent to 40 million VND) per month" - Ms. Marife Ballesteros emphasized.
Meanwhile, a Filipino, on average across different occupations, has a monthly income of only about 18,423 pesos (equivalent to 8 million VND), according to the 2022 Wage Survey data of the Philippine Statistics Authority.
However, young Filipinos may be able to earn better money thanks to their tech savvy and increased global job connections, which Ballesteros said could help them afford bigger homes.
For software developers in the information services sector, the average monthly salary can reach around 70,595 pesos (equivalent to 30 million VND), which means they need to spend frugally if they want to buy a house.
Permalino remains optimistic. He has set a savings goal of 500,000 pesos (VND215 million) and is already halfway there.
Permalino’s monthly rent, utilities, transportation, and food total about 50,000 pesos ($900), but his YouTube vlogs about life in Manila bring in nearly 12,000 pesos ($220) a month. He also saves 10 percent of his salary, using digital banks to maximize interest.
To prepare for the future, the young man is also learning about programming, video editing and graphic design to increase his income and get closer to his goal of buying a house.
Permalino plans to stay in Metro Manila for the long haul, at least for the next two decades. For him, the convenience and urban living experience here is worth the effort and expense, better than moving back to his hometown of Baguio.
But to find an affordable home, he knows he needs to do his research. “What you see on social media, at least in the ads, or on flyers or real estate agents… isn’t always what it seems,” Permalino said.
