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Hong Kong is once again named the most expensive location in the world

  • Hong Kong tops the rankings as the most expensive location for overseas workers
  • 10 of the top 20 most expensive locations in the world are Asian cities, as Chinese cities move up the rankings
  • Geneva, Switzerland is second in the global rankings, with Tokyo in third place as New York falling out of the global top three.

Hong Kong remains the most expensive location in the world, with many prices rising quickly after slower growth in 2020 due to the economic impact of the Covid-19 pandemic. This was one of the findings of the latest Cost of Living research published by ECA International, the world's leading provider of knowledge, information and software for the management and assignment of employees around the world.

“Hong Kong has maintained its position as the most expensive location in the world” said Lee Quane, Regional Director – Asia at ECA International. “Hong Kong is consistently towards the top of the table and this year was no different with prices increasing by 2.7% overall in local currency. The Hong Kong economy has seen a recovery of sorts after a turbulent few years caused by the Covid-19 pandemic, and political and social upheaval before this, and the increase in local prices reflects this.”

ECA International has been conducting research into cost of living for 50 years. It carries out two main surveys per year to help companies calculate cost of living allowances so that their employees' spending power is protected while on an international assignment. The surveys compare a basket of like-for-like consumer goods and services commonly purchased by assignees in over 480 locations worldwide. ECA’s accommodation data is also factored in, comparing rental costs in areas typically inhabited by expatriate staff in over 411 locations worldwide.

Asia Highlights

Chinese cities all rose in the latest rankings, with four Chinese locations now in the top 15 and Shanghai and Guangzhou both entering the global top ten. 

Quane said “Chinese cities have seen a rise in the rankings on the back of a strengthening of the Chinese yuan and relatively high rates of price increases. The Chinese currency has strengthened against all other major currencies thanks to a rebound in the demand for Chinese goods after a Covid-related lull at the beginning of 2020 and this means that these cities are now more expensive for overseas workers compared to previously. Additionally, inflation in China has also picked up this year thanks particularly to rising fuel prices.”

It was a similar story in Taiwan, with all surveyed cities jumping in the rankings and Taipei entering the top twenty most expensive global locations.

“The economy of Taiwan is currently experiencing a period of strength as its currency performs well against the dollar. Taiwan avoided the worst of the economic downturn during the initial stages of the Covid-19 pandemic due to its early success in mitigating the spread of the virus, but the biggest reason for the boost to the Taiwanese dollar was the strength of exports, particularly semiconductors. This has contributed to the rise in our rankings of cities in Taiwan” explained Quane.

Thai locations on the other hand, all saw a significant drop in the rankings. Bangkok dropped 12 places and now sits outside of the top 50 most expensive locations globally, with all other Thai cities moving to outside of the top 125 locations.

Quane said “The long-term effects of limited tourism and restricted overseas travel continue to impact the Thai economy, causing all Thai locations to plummet in the rankings. The lack of overseas visitors has helped to weaken the baht while inflation rates, as measured by our baskets of goods, has been lower in Bangkok in comparison to most other locations in the region.”

Singapore has remained steady in the rankings, rising two places to twelfth globally.

“Singapore has witnessed relatively high rates of inflation in the past year when measured by our basket of goods” explained Quane. “Inflation in day-to-day items has been accompanied by relatively high rates of growth in costs of rental accommodation. This contributed to Singapore’s rise of 2 places in the rankings along with the relative strength of the Singapore dollar against the yen and US dollar.”

Japanese locations have all dropped in the latest rankings after a tough year for the yen. Tokyo has dropped one place to the third after being overtaken by Geneva, while Yokohama has fallen out of the global top ten to 16th.

Quane stated “The Japanese economy has experienced a challenging period of late and the yen has fallen against all major currencies, making the country relatively cheaper when measured against living costs elsewhere. This is despite Japan seeing a rare rise in prices thanks in part to more expensive imports, particularly oil. The weaker yen has outweighed any price rises, which has resulted in Japanese cities becoming a little cheaper compared to some other major global locations.”

Global Highlights

Most locations within the EU have seen drops in the rankings after an unsteady period for the euro, with Paris falling out of the global top 30 and cities such as Madrid, Brussels and Rome all falling too.

Quane said, “Nearly every major Eurozone city saw a drop in the rankings this year as the euro performed worse in the last 12 months than the US dollar and British pound.”

Russian cities in the rankings have rebounded after falling significantly in the past, with Moscow moving up four places to 52nd globally and St. Petersburg moving up 12 places to 138th globally.

“The rouble has seen a rebound in line with a rally to the price of oil after a significant drop in the rankings last year. Russia, along with many other oil producing countries, has benefitted from increased demand and rising oil prices after the drop in prices that followed the start of the pandemic in 2020 ” said Quane.

Top ten most expensive locations for expatriates - global
Location
2021 global ranking
2020 global ranking
Hong Kong
1
1
Geneva
2
4
Tokyo
3
2
New York
4
3
Tel Aviv
5
7
London
6
6
Zurich
7
5
Seoul
8
8
Shanghai
9
11
Guangzhou
10
15
Top ten most expensive locations for expatriates - Asia
Location
2021 global ranking
2020 global ranking
Hong Kong
1
1
Tokyo
3
2
Seoul
8
8
Shanghai
9
11
Guangzhou
10
15
Shenzhen
11
17
Singapore
12
14
Beijing
15
18
Yokohama
16
10
Taipei
19
25
-ENDS-

Notes to Editors

About ECA's Cost of Living Ranking

ECA International's cost of living rankings combine ECA’s Cost of Living research and Accommodation research to enable a comparison of costs faced by expatriates around the world in 208 cities in 121 countries and territories. 

This comparison of cost of living is calculated on a base composed of various developed countries and is used to reflect an international lifestyle. Other indices available from ECA reflect specific city-to-city comparisons and different levels of shopping efficiency.

ECA’s Cost of Living research

ECA International’s cost of living research is carried out in March and September using a basket of day-to-day goods and services commonly purchased by assignees. The data used above refers to the September 2021 data collection period with changes compared to the September 2020 period. ECA’s Cost of Living rankings began in 2005.

Cost of living indices are used by ECA clients to calculate cost of living allowances for assignees.  The research covers:

  • Food: Groceries; dairy produce; meat and fish; fresh fruit and vegetables 
  • Basic: Household goods; recreational goods; general services; leisure services
  • General: Clothing; electrical goods; motoring; meals out; alcohol and tobacco
  • Utilities costs
  • Public transport

ECA’s Accommodation research

This ranking uses data from ECA's 2021 Accommodation reports. The reports have been published annually since 1996.

The reports provide comprehensive and reliable information for locations worldwide on the rental trends, types of accommodation and districts commonly sought by expatriates. To ensure impartiality and to maintain the accuracy of information, data from a number of sources is used to compile each accommodation report. ECA uses a global network of estate agents, relocation agents and extensive in-house research into worldwide property markets to establish and verify the housing data in the reports. 

About ECA International 

ECA International is the market-leading provider of knowledge, information and technology that enables businesses to manage their international reward programmes. 

Partnering with thousands of clients on every continent, we provide a fully-integrated suite of quality data, specialist software, consultancy and training. Our unparalleled insights guide clients as they mobilise their most valuable resource: people.

We make the complex world of international mobility simple, providing clients with the expertise and support they need to make the right decisions - every time.

ECA International: Mobility solutions for a world that’s constantly moving.

For further information, please contact:

Jack Firth
+44 (0)20 7351 5000
jack.firth@eca-international.com

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