- Singapore is now the fifth most expensive location in the world for expatriates, driven by rising accommodation costs
- Hong Kong ends four-year reign as most expensive city globally, but remains first in Asia
- New York claims top spot due to high rental and price inflation
Singapore – 7 June, 2023 – Singapore has risen eight places in ECA’s cost of living rankings to become the fifth most expensive location in the world for expatriates, marking its first time in the top five. The ascent was primarily driven by rapidly rising accommodation costs. Singapore is one of the few locations in Asia that moved up the rankings this year, owing to rents rising significantly in 2022 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 fall of many Asian locations in our rankings can be attributed in part to lower rates of inflation relative to other regions included in our research. However, some locations bucked this trend,” said Lee Quane, Regional Director – Asia at ECA International. “Singapore’s rise is notable. Increased demand for rental accommodation in the Lion City, driven by factors such as the earlier relaxation of Covid-19 restrictions compared to other key locations in the region, was not matched by corresponding increases in the supply of suitable accommodation.”
Seoul and Yangon also buck trend of falling rankings in Asia
Nearly all surveyed major locations in Asia have seen drops in the rankings, indicating that expatriates will find living in Asian cities relatively cheaper than the rest of the world in the past year. The fall is partly due to lower rates of inflation relative to other regions included in the research. Seoul and Yangon were among the exceptions. Seoul climbed one place to ninth in the rankings and Yangon rose four places to 167th.
Quane advised: “Singapore and Seoul’s rise bucked the general downward trend in Asia largely due to major increases in accommodation costs (though in Seoul the increase was caused by changes limiting supply rather than increased demand), whereas Yangon’s rise was due to ongoing socio-political issues causing significant inflation for day-to-day goods and services.”
In South East Asia, Singapore maintains a significant lead in the rankings, further widening the gap between the city-state and its regional counterparts. Bangkok, the second most expensive city in the region after Singapore, dropped 13 places to become the 60th most expensive location in the world,
“Despite relatively high rates of price growth, Bangkok still fell in our rankings,” said Quane. “The baht has weakened against major currencies in the past 12 months, making it cheaper than many locations. The same pattern was witnessed in other south-east Asian locations where moderate to high rates of inflation were offset by weaker currencies.”
Elsewhere in the region, Manila fell nine places to 75th, while Jakarta dropped 22 places to 114th. In Malaysia, Kuala Lumpur dropped 12 places to 175th, while George Town, Kota Kinabalu, and Johor Bahru also experienced slight drops in their rankings, landing at 189th, 195th and 198th respectively.
East Asia highlights
Hong Kong has dropped one place and is now the second-most expensive location in the world, surpassed by New York. This shift marks the end of Hong Kong's four-year reign at the top.
“Costs for goods and services in Hong Kong rose at multi-year highs, showing that the city was not spared from the wave of inflation we have seen throughout the world in the past year,” explained Quane. “In spite of this, Hong Kong fell in our rankings as the increase in prices of day-to-day goods and services was tempered by falls in accommodation costs in the city.”
Chinese cities fell in the rankings due to the impact of a weaker Chinese yuan and lower inflation rates compared to other countries. Shanghai and Guangzhou, while retaining their status as the most expensive cities in China, have fallen out of the global top 10 and now rank as the 13th and 14th most expensive cities in the world.
“China’s relatively late emergence from Covid-19 related restrictions had an impact on its economy,” explained Quane. “The yuan is weaker against the US dollar than it was last year, resulting in lower costs in its cities. Inflation rates have been lower than in many other locations in the world as well.”
Cities in Taiwan have also seen double-digit drops in rankings, with Taipei sliding 11 places to 31st spot globally. Similarly, Japanese cities witnessed significant falls in the ranking as currency depreciation counteracted inflation rates that are at multiyear highs. Tokyo, which was consistently among the top five globally in the past five years, has dropped five places to 10th.
“Tokyo’s fall in our rankings makes it a relatively cheaper location in comparison to recent years,” explained Quane. “However, for companies moving staff from Japan, the result of Japanese cities’ fall in our rankings owing to a weaker currency means that companies may have to pay more in order to ensure that their employees’ purchasing power is protected whilst they are overseas.”
Top Ten Most Expensive Locations for Expatriates - Asia
|
Location
|
2023 global ranking
|
2022 global ranking
|
|
Hong Kong
|
2
|
1
|
|
Singapore
|
5
|
13
|
|
Seoul
|
9
|
10
|
|
Tokyo
|
10
|
5
|
|
Shanghai
|
13
|
8
|
|
Guangzhou
|
14
|
9
|
|
Shenzhen
|
16
|
12
|
|
Beijing
|
17
|
14
|
|
Taipei
|
31
|
20
|
|
Yokohama
|
41
|
17
|
Global highlights
Rankings for all US cities have surged this year, driven by the strength of the US dollar and high inflation. New York has overtaken Hong Kong as the most expensive location in the world for expatriates, in particular, due to significant rises in rental costs as demand soared post-pandemic.
Meanwhile, trends among European capitals have been mixed. Geneva and London maintained their positions as the third and fourth most expensive locations in the world. However, Norwegian and Swedish cities plummeted in the rankings by an average of 10 places mainly due to their weakened currencies. On the other hand, nearly two-thirds of the locations in the Eurozone have risen in the rankings. Notably, France is an exception, with all surveyed French cities falling in the rankings. This decline can be attributed to slightly lower inflation rates compared to many other cities using the euro.
The ongoing Russian invasion of Ukraine continues to impact the cost of living in the warring countries themselves, the wider region and around the world. Despite Western sanctions, the Russian rouble has rebounded in the past year, pushing Moscow up 37 places to become the 25th most expensive location in the world.
Accommodation costs in locations where many Ukrainian refugees have fled the war have surged, making them more expensive for everyone including expatriates. Polish cities have seen the biggest impact with massive rises in rents, which have pushed Krakow up 23 places in the global rankings to 178th and Warsaw up 11 places to 158th.
Russians fleeing possible mobilisation as a result of the war have also had an impact on several cities, such as Dubai and Tbilisi. Rents in Dubai rose nearly a third pushing the city up to 12th in the global rankings while rents also rose by more than a fifth in Tbilisi as supply could not rise to meet the increased demand from Russian expatriates. This resulted in a significant climb of 65 places for the Georgian city, now ranked 102nd. Furthermore, a stronger currency also contributed to Tbilisi becoming more expensive for visitors. However, Istanbul is the biggest riser in this year’s rankings, up 95 places to 108th. While the war has impacted the city, prices have surged by over 80% mainly due to the economic policies of the recently re-elected President Recep Tayyip Erdoğan.
Top Ten Most Expensive Locations for Expatriates - Global
|
Location
|
2023 global ranking
|
2022 global ranking
|
|
New York
|
1
|
2
|
|
Hong Kong
|
2
|
1
|
|
Geneva
|
3
|
3
|
|
London
|
4
|
4
|
|
Singapore
|
5
|
13
|
|
Zurich
|
6
|
7
|
|
San Francisco
|
7
|
11
|
|
Tel Aviv
|
8
|
6
|
|
Seoul
|
9
|
10
|
|
Tokyo
|
10
|
5
|
-ENDS-
Notes to Editors
About ECA's Cost of Living Ranking
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 in 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 March 2023 data collection period with changes compared to the March 2022 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 2023 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.
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Yuhui Ko / Alyssa Pabellano
Rice Communications for ECA International
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Jenny Chiang
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