- Singapore falls to 14th most expensive location for overseas workers, overtaken by Danish and Swiss locations as the Singapore dollar weakens
- Hong Kong remains the most expensive location for expatriates to live in, despite falling rental prices
- Tokyo comes in second in the global rankings, with New York in third place
- Thai and Vietnamese cities see a significant drop from 2019, following blow to the tourism industry
- Mumbai, India falls the most in Asia - by 34 places to 94th position globally
Singapore fell two places in the latest cost of living rankings, but remains in the top 15 most expensive locations in the world for expatriates. 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.
“Both the direct impact of the Covid-19 pandemic on the local economy and the resultant fall in trade from the global recession left a blow on Singapore’s economy,” said Lee Quane, Regional Director – Asia at ECA International. “This contributed to the weakening of the Singapore dollar compared to stronger currencies, like the Danish kroner and Swiss franc. As such, Copenhagen and Bern moved above the city state in the rankings this year.”
Hong Kong continues to be the most expensive location in the world for expatriates, despite rental prices falling over the past 12 months. Its stability in global rankings is reflective of low inflation and a stable currency which allows companies to budget costs better and more accurately for their overseas employees.
Quane said, “Hong Kong is expensive across many areas that we consider as part of our research, but its exceptionally high housing costs pushes it to the number one spot. This is despite seeing some property prices fall in the last year, in response to a drop in demand due to the pandemic and ongoing political uncertainty.”
China’s tier one cities all feature in the top 20 most expensive cities in the world, with Shanghai highest in 11th place, despite a weaker renminbi, as well as low or negative inflation in many Chinese locations.
Quane said, “Chinese cities remain some of the most expensive in the world for overseas workers to live in, with Shanghai, Guangzhou, Shenzhen and Beijing all ranked in the global top 20. This is despite deflation and exchange rate weakness pushing most Chinese cities lower in the rankings. As with many other locations, the main factor behind the lower prices was the significant drop in petrol costs, which had decreased by nearly 15% in many Chinese cities over the past year due to lower global oil prices. As the Covid-19 pandemic continued to escalate, many cities around the world saw stringent measures including citywide lockdowns to try and combat the spread of the virus. This resulted in a decline in travel leading to a significant fall in petrol and oil prices in the face of weaker demand.”
Some of the biggest drops in the rankings this year were seen in Thai and Vietnamese cities, which had seen rises in previous rankings.
“Every Thai and Vietnamese location fell at least ten places in the rankings this year as the pandemic hit local economies. The Thai baht and Vietnamese dong weakened significantly against other major currencies during the Covid-19 pandemic, partly due to a major blow to the tourism industry as fewer visitors travelled to the region. Rental costs also fell due to the weaker demand. The only Thai city that remains in the global top 100 most expensive locations is Bangkok, but even the Thai capital fell 16 places in the rankings to 39th overall,” said Quane.
The greatest fall in the rankings in Asia this year was Mumbai, which dropped 34 places to 94th position globally.
Quane said, “Mumbai, the most expensive city in India, plunged the most in Asia due to a combination of a weak rupee and cheaper rents in the city’s expatriate rental market. However, other cities in India fared better despite similar circumstances, mostly due to the poor performance of the currencies of other countries around them in the rankings.”
Global Highlights
Australian cities have become more expensive for many overseas workers over the past 12 months, resulting in every location in the country moving up the rankings and Sydney entering the global top 50.
“The Australian dollar performed strongly this year, which made goods and services more expensive for people coming from abroad compared to a year ago. While the country is in the middle of its first recession in 29 years, swift measures taken by the authorities have resulted in a fairly limited spread of Covid-19 cases compared to many other nations around the world,” explained Quane.
Likewise, most European locations also saw a rise in the rankings, as the euro and British pound performed strongly throughout most of 2020.
Quane said, “With the euro and pound rebounding this year, living costs increased for many overseas workers. This was due to a gradual subsiding of uncertainty around Brexit in 2020, having been a constant feature throughout 2019. These factors also pushed many major European cities up in the rankings, with London now the 6th most expensive location in the world, Paris up ten places to 29th, and Vienna and Munich entering the global top 50. However, with another Brexit deadline fast approaching, we can expect further volatility in the months to come.”
The drop in oil prices as a result of the Covid-19 pandemic also meant that locations where the local economies were heavily reliant on oil saw large economic downswings, weaker currencies, and subsequent drops in their rankings. This was the case in Brazil, Russia, Venezuela and others, with the biggest impact seen in Luanda, Angola – which fell the furthest in this year’s rankings – dropping 104 places from 37th to 141st.
ECA International has been conducting research into cost of living for over 45 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 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 390 locations worldwide.
Top ten most expensive locations for expatriates - Asia
|
Location
|
2020 global ranking
|
2019 global ranking
|
|
Hong Kong
|
1
|
1
|
|
Tokyo, Japan
|
2
|
2
|
|
Seoul, Republic of Korea
|
8
|
7
|
|
Yokohama, Japan
|
10
|
8
|
|
Shanghai, China
|
11
|
11
|
|
Singapore
|
14
|
12
|
|
Guangzhou, China
|
15
|
13
|
|
Shenzhen, China
|
17
|
15
|
|
Beijing, China
|
18
|
21
|
|
Osaka, Japan
|
23
|
24
|
Top ten most expensive locations for expatriates - Global
|
Location
|
2020 ranking
|
2019 ranking
|
|
Hong Kong
|
1
|
1
|
|
Tokyo, Japan
|
2
|
2
|
|
New York, USA
|
3
|
3
|
|
Geneva, Switzerland
|
4
|
4
|
|
Zurich, Switzerland
|
5
|
6
|
|
London, UK
|
6
|
10
|
|
Tel Aviv, Israel
|
7
|
5
|
|
Seoul, Korea Republic
|
8
|
7
|
|
San Francisco, USA
|
9
|
9
|
|
Yokohama, Japan
|
10
|
8
|
-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 2020 data collection period with changes compared to the September 2019 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 2020 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.
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For further information, please contact:
Jack Firth
Tel: +44 0 20 7351 5000
Email: Jack.Firth@eca-international.com