Hong Kong has ended its four-year reign as the costliest city globally for expatriates — surpassed by Latest York which took first place, based on a latest survey.
ECA International’s latest “Cost of Living” research ranked 207 cities based on a basket of day-to-day goods and services commonly purchased by assignees.
That features food, utilities, public transport and basic needs similar to household goods. The research goals to assist organizations calculate cost-of-living allowances for assignees, the info company said.
Hong Kong fell in our rankings as the rise in prices of day-to-day goods and services was tempered by falls in accommodation costs in the town.
Lee Quane
ECA International
Still, Hong Kong retained its position as the costliest location in Asia.
“Costs for goods and services in Hong Kong rose at multi-year highs, showing that the town was not spared from the wave of inflation now we have seen throughout the world up to now 12 months,” said Lee Quane, regional director for Asia at ECA International.
“Regardless of this, Hong Kong fell in our rankings as the rise in prices of day-to-day goods and services was tempered by falls in accommodation costs in the town.”
Hong Kong has hiked its mortgage rates of interest to maintain pace with the U.S. Federal Reserve — and residential prices plunged to a five-year low in October as borrowing costs soar. The report is predicated on information collected in March, from 207 cities in 120 countries, said ECA. Reports suggest residents of Hong Kong left the town in droves last 12 months — attributable to Covid-19 restrictions and what they see as an erosion of democratic norms.
Singapore moves up
The second most costly location in Asia is Singapore, which rose eight places from last 12 months’s rating.
Singapore can also be the fifth most costly location globally, the survey showed, marking the primary time it has risen into the highest five.
This ascent was primarily driven by “rapidly rising accommodation costs,” based on the ECA.
A recent report from the Urban Land Institute (ULI) Asia Pacific Centre for Housing found that personal rental homes in Singapore had the best monthly rent in Asia Pacific at $2,600 — “far exceeding” other cities.
Earlier leisure of Covid-19 restrictions in Singapore drove up demand for rental accommodation, which was “not matched” by a rise of supply, said Quane.
Nevertheless, Singapore is one in every of only a couple of locations in Asia that moved up the rankings this 12 months.
Nearly all of the Asian locations surveyed fell within the rankings, the report said, citing “lower rates of inflation relative to other regions” that were surveyed.
“[This] indicated that expatriates will find living in Asian cities relatively cheaper than the remainder of the world up to now 12 months,” the report said.
Most costly locations for expatriates in Asia
- Hong Kong
- Singapore
- Seoul
- Tokyo
- Shanghai
- Guangzhou
- Shenzhen
- Beijing
- Taipei
- Yokohama
For instance, Chinese cities like Shanghai and Guangzhou have fallen out of the worldwide top 10 and now rank because the thirteenth and 14th most costly cities on the earth.
“China’s relatively late emergence from Covid-19 related restrictions had an impact on its economy,” explained Quane.
“The yuan is weaker against the U.S. dollar than it was last 12 months, leading to lower costs in its cities.”
Similarly, currency depreciation “counteracted” inflation rates in Japanese cities — Tokyo, which was top five globally up to now five years, dropped five places to tenth, ECA said.
“Tokyo’s fall in our rankings makes it a comparatively cheaper location compared to recent years,” explained Quane.
“Nevertheless, for corporations moving staff from Japan … [it] signifies that corporations could have to pay more with a view to make sure that their employees’ purchasing power is protected whilst they’re overseas.”
Latest York on top
Within the U.S., rankings for all cities surged this 12 months attributable to the strength of the U.S. dollar and “significant rises” in rental costs, said the report.
In keeping with the survey, Latest York moved up one spot to first place, while San Francisco moved up 4 places from eleventh to seventh.
