Hong Kong ended its four-year reign as the world’s most expensive city for expats, surpassed by Latest York, which took the top spot, in response to a latest poll.
ECA International’s latest “Cost of Living” study ranked 207 cities based on a basket of on a regular basis goods and services which can be commonly purchased by assignees.
This includes food, utilities, public transport and basic necessities such as home items. The study is designed to assist organizations calculate the cost of living for assignees, the data firm said.
Hong Kong slipped down our rankings as increases in the prices of on a regular basis goods and services were mitigated by declines in the cost of accommodation in the city.
Lee Quane
ECA International
Despite this, Hong Kong maintained its position as the most expensive location in Asia.
“Hong Kong’s cost of products and services has risen to its highest levels in a few years, which shows that the city has not been spared the wave of inflation we saw around the world last 12 months,” said Lee Quane, ECA’s regional director for Asia. International.
“Still, Hong Kong slipped down our rankings as increases in the prices of on a regular basis goods and services were mitigated by falls in the cost of accommodation in the city.”
Hong Kong raised mortgage rates to maintain pace with the US Federal Reserve – and house prices fell to a five-year low in October as borrowing costs soared. The report relies on information collected in March from 207 cities in 120 countries, the ECA said. Reports suggest Hong Kong residents left the city en masse last 12 months – as a result of Covid-19 restrictions and what they see as an erosion of democratic norms.
Singapore will advance
The second most expensive location in Asia is Singapore, up eight places from last 12 months’s rating.
The study found Singapore to be the fifth most expensive location in the world as well, and it made it into the top five for the first time.
In line with the European Court of Auditors, this increase was mainly as a result of “rapidly rising accommodation costs”.
A recent report by the Urban Land Institute (ULI) Asia Pacific Center for Housing found that non-public rental homes in Singapore had the highest monthly rent in the Asia-Pacific region at $2,600 – “well above” other cities.
![Why real estate investors come to Singapore](https://image.cnbcfm.com/api/v1/image/104311335-GettyImages-497618142.jpg?v=1532563901&w=750&h=422&vtcrop=y)
An earlier easing of Covid-19 restrictions in Singapore has boosted demand for rental housing “not accompanied” by a rise in supply, Quane said.
Nonetheless, Singapore is one among the few locations in Asia to maneuver up in the rankings this 12 months.
The report said nearly all of the Asian locations surveyed dropped in the rankings, citing “lower inflation rates in comparison with other regions” that were surveyed.
“[This] indicate that expats find living in Asian cities relatively cheaper than in the remainder of the world last 12 months.
Most Expensive Expat Locations in Asia
- Hong Kong
- Singapore
- Seoul
- Tokyo
- Shanghai
- Canton
- Shenzhen
- Beijing
- Taipei
- Yokohama
For instance, Chinese cities like Shanghai and Guangzhou dropped out of the top 10 in the world and are actually the thirteenth and 14th most expensive cities in the world.
“China’s relatively late exit from Covid-19 restrictions has had an impact on its economy,” Quane explained.
“The yuan is weaker against the US dollar than last 12 months, resulting in lower costs in cities.”
![China's Yuan is likely to strengthen as the Covid Zero Policy headwinds pass: Strategist](https://image.cnbcfm.com/api/v1/image/107173545-16728011721672801169-27531952775-1080pnbcnews.jpg?v=1672807399&w=750&h=422&vtcrop=y)
Similarly, currency depreciation “counteracted” inflation rates in Japanese cities – Tokyo, which ranked amongst the world’s top five for the past five years, dropped five places to tenth, the ECA said.
“Tokyo’s decline in our rankings makes it a comparatively cheaper location in comparison with recent years,” explained Quane.
“Nonetheless, for corporations relocating employees from Japan… [it] means corporations can have to pay more to make sure that their employees’ purchasing power is protected while they’re abroad.
Latest York at the top
In the United States, the rankings for all cities rose this 12 months as a result of strength US dollar and a “significant increase” in rental costs, the report says.
In line with the poll, Latest York moved up one spot to primary, and San Francisco moved up 4 spots from eleventh to seventh.
![Why a strong US dollar is bad for the 'rest of the world'](https://image.cnbcfm.com/api/v1/image/107175602-GettyImages-1241993130.jpg?v=1683872094&w=750&h=422&vtcrop=y)