Singapore has risen four places in the latest global cost of living rankings, making it the eighth most expensive location in the world and second in Asia. 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.
“The biggest driver behind Singapore’s rise in our latest rankings has been the double-digit increase in rental costs in 2022,” said Lee Quane, Regional Director – Asia at ECA International. “The Covid-19 pandemic impacted the supply of accommodation coming to market, and the resurgent demand has increased significantly with the city reopening its borders once again. This may be a short-term shock, but it has nevertheless been responsible for Singapore’s current position as one of the ten most expensive cities worldwide.”
Asia Highlights
Despite the general uptrend in inflation rates globally, those across Asia have seen relatively smaller upticks, resulting in almost 65% of surveyed locations in the region falling in this year’s Cost of Living rankings.
Hong Kong, which came in first in last year’s rankings, has moved down one place to become the second most expensive location in the world. In spite of relatively high rates of inflation and a strong Hong Kong Dollar, its drop can be attributed to a fall in accommodation costs. Demand for properties popular with expatriates fell as the Hong Kong economy stuttered in the face of slowing economic growth in China, uncertainties in imposing the national security law as well as strict Covid restrictions.
“Like many places in the world, prices of day-to-day goods and services grew in Hong Kong at a rate well above what we have seen in recent years, while also surpassing the average rate of growth witnessed in the Asia region,” said Quane. “However, demand for rental accommodation has weakened on account of Hong Kong’s sub-par economic performance recently, which has caused rental prices to fall in turn and contributed to Hong Kong’s decline in our rankings.”
In China, with the yuan weakening against the US dollar and amidst relatively low inflation rates, Chinese cities found themselves further down the rankings compared to last year, with Guangzhou and Shanghai dropping out of the global top 10.
“Low rates of inflation compared to other locations worldwide and a weaker currency have made locations in mainland China relatively cheaper for expatriates this year,” explained Quane. “Although living costs in Chinese cities have risen over the past year, the cities have nonetheless fallen in our rankings as cost of living continues to climb at a faster rate elsewhere.”
Meanwhile, Japan, which has typically been regarded as a country with a relatively high cost of living, saw a significant departure from the norm this year. The depreciation of the Japanese yen by 20% year-on-year against the US dollar led to big falls in the rankings for all Japanese cities surveyed – Tokyo, which ranked third globally last year, has fallen out of the top 10 this year, while Nagoya fell 49 places to 87th.
Southeast Asia Highlights
High rates of inflation have contributed to rises in the rankings for several locations in Malaysia, including Johor Bahru. However, its capital Kuala Lumpur moved down to 167th, as the Ringgit’s weakness against the US Dollar has offset some of the impact that inflation has had on its ranking.
Meanwhile, cities across Thailand and the Philippines have all seen drops in this year’s rankings. Bangkok fell 12 places to 63rd, continuing its move away from the global top 50, while Manila fell 10 places to 67th and Cebu City 14 places to 169th globally.
Laos in particular saw the largest fall in rankings among Southeast Asian locations, with Vientiane dropping 29 places to 193rd in the world as a result of the Kip weakening against the US dollar by 38%.
Global Highlights
New York has been named the most expensive location in the world, owing to the strength of the US dollar and high inflation. These factors have also led to all other US cities moving up in this year’s rankings, with San Francisco now in sixth and Los Angeles entering the global top 20.
In contrast, most locations in Europe have seen drops in their positions despite high inflation rates driven by rising fuel and food costs. This was primarily spurred by a weakened euro and British pound, which has made expenses in regional cities cheaper in comparison to other cities around the world.
“Following the euro’s significant depreciation to parity with the US dollar, cities across the eurozone fell in the rankings despite high inflation rates fuelled by the war in Ukraine,” said Quane. “Throughout the region, only nine cities rose in the rankings, with London being one of them. However, the eurozone was not alone in this, as many other currencies also weakened against the US dollar.”
With inflation rates surging beyond 100% in Turkey, the country has become more expensive for expatriates and tourists alike despite the plunging value of the lira – Istanbul rose 27 places to 150th, while Ankara moved out of last place to 205th.
Top ten most expensive locations for expatriates – Global
|
Location
|
2022 Global Ranking
|
2021 Global Ranking
|
|
New York
|
1
|
4
|
|
Hong Kong
|
2
|
1
|
|
Geneva
|
3
|
2
|
|
Tel Aviv
|
4
|
5
|
|
London
|
5
|
6
|
|
San Francisco
|
6
|
13
|
|
Zurich
|
7
|
7
|
|
Singapore
|
8
|
12
|
|
Seoul
|
9
|
8
|
|
Moscow
|
10
|
52
|
Top ten most expensive locations for expatriates – Asia
|
Location
|
2022 Global Ranking
|
2021 Global Ranking
|
|
Hong Kong
|
2
|
1
|
|
Singapore
|
8
|
12
|
|
Seoul
|
9
|
8
|
|
Shanghai
|
11
|
9
|
|
Tokyo
|
12
|
3
|
|
Guangzhou
|
15
|
10
|
|
Shenzhen
|
16
|
11
|
|
Beijing
|
17
|
15
|
|
Taipei
|
30
|
19
|
|
Yokohama
|
38
|
16
|
-ENDS-
Notes to Editors
About ECA's Cost of Living Rankings
ECA International's Cost of Living rankings combine ECA’s Cost of Living and Accommodation research to enable a comparison of costs faced by expatriates around the world in 207 cities across 120 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 2022 data collection period with changes compared to the September 2021 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 2022 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:
Keith Lee / Alyssa Pabellano
Rice Communications for ECA International
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Jenny Chiang
Email: Jenny.Chiang@eca-international.com