Singapore is world’s eighth most expensive city for expats: study

A significant increase in rental costs propelled the Lion City’s overall cost-of-living up.

Singapore has risen four spots to rank as the eighth most expensive city in the world, according to the latest cost-of-living study conducted by ECA International.

A significant increase in the city’s rental costs in 2022 led to its rise in ranking. Singapore ranked 12th in 2021.

The city’s relatively high rates of inflation in day-to-day goods and services in comparison to recent years also contributed to the rise.

“The biggest driver of Singapore’s rise in our rankings has been a 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 demand has increased significantly as the city has opened its borders once again. This may be a short-term shock but nonetheless, it has been responsible for Singapore’s current position as one of the ten most expensive locations worldwide.”

The Lion City’s performance is in contrast with the rest of its Asian peers. According to ECA International, 65% of surveyed locations in Asia fell in the global ranking, as inflation in the region was not as high compared to other locations in the world.

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Hong Kong continues to be the most expensive city in Asia and is the second most expensive city globally, with New York City edging past the financial hub as rents in the US city soared.

In China, a weaker yuan and relatively low rates of inflation have resulted in all surveyed cities in China dropping, with Guangzhou and Shanghai falling out of the global top 10 in 2022, said Quane.

“Low rates of inflation relative to other locations worldwide, alongside a weaker currency has made locations in mainland China relatively cheaper this year,” Quane noted. “Although prices have risen in Chinese cities meaning that living costs are higher in 2022 than they were in 2021, cities have nonetheless fallen in our rankings as prices have risen at a faster rate elsewhere.” 

Tokyo, meanwhile, is out of the top 10 in 2022 after ranking 3rd in 2021. Nagoya also fell 49 places to 87th place, below Brussels and Rome. This was due to the Japanese yen depreciating by 20% year-on-year against the US dollar.

Karachi remains Asia’s and the world’s cheapest city as high rates of inflation were offset by its weaker currency. 

ECA International’s study is based on surveys that compare a basket of like-for-like consumer goods and services commonly purchased by assignees in over 490 locations worldwide. ECA’s accommodation data is also considered, with the study comparing rental costs in areas typically inhabited by expatriate staff in over 420 locations worldwide.