Singapore Is 5th Most Expensive City For Expats In Asia: Survey

Source: The Business Times, 19 June 2007

Singapore is now the fifth most expensive city for expatriates in Asia and 14th most expensive in the world, according to Mercer Human Resource Consulting’s latest Cost of Living Survey.

The survey covered 143 cities across six continents and measured the comparative cost of over 200 items in each location, including housing, transport, food, clothing, household goods and entertainment. It is used to help multinational companies and governments determine compensation allowances for their expatriate employees.

Rebecca Powers, principal and senior consultant at Mercer, said: ‘There have been some significant changes in the ranking since last year. These are primarily due to exchange rate fluctuations - in particular the weakening of the US dollar and the strengthening of the euro.’

In Singapore, sharp increases in property prices have contributed to the city moving one notch up the Asian ranking, overtaking Beijing (20th globally).

The cost of accommodation of international standards has also pushed Indian cities up the rankings. Mumbai (52nd globally) moved into the Asian top 10 from 14th place last year.

Shenzhen also made it to the top 10 this time, squeezing out Hanoi and Ho Chi Minh City.

However, with the exception of Singapore and Indian cities, Asian cities have dropped in the global rankings. Although Asia dominated the top five positions, with Seoul, Tokyo and Hong Kong coming in respectively at third, fourth and fifth positions globally, each of them has dropped by a notch.

In total, there are now only eight Asian cities in the global top 50, as compared to 12 a year ago.

Chinese cities fell in the global rankings due to depreciation of the yuan against the euro, low inflation and stable property rentals. The report said that accommodation costs have not escalated, because despite the increasing demand for housing, supply of high-quality rentals was sufficient.

Moscow is the world’s most expensive city for expatriates for the second year running, due to the appreciation of the Russian rouble against the US dollar and increasing accommodation costs.

London leapfrogged the top three Asian cities to take second spot, on the back of steep property rental costs and the strengthening of the pound against the US dollar.

New York was the priciest North American city again this year, but its ranking fell from 10th to 15th. Los Angeles, coming in at 42, was the only other North American city to rank in the global top 50.

Ms Powers said: ‘The decline of most US cities in the ranking can be attributed to the depreciation of the US dollar against the euro and other major currencies worldwide. The change reflects a reversal of the situation experienced this time last year, when the majority of US cities climbed the ranking due to the strength of the dollar.’

The appreciation of the euro has resulted in some European cities moving up the rankings. Notably, Stockholm rose from 36th to 23rd, while Amsterdam moved from 41st to 25th.

In Latin America, Sao Paulo (62nd) and Rio de Janeiro (64th) remain the most costly. Asuncion in Paraguay is the least expensive among those surveyed for the fifth year running.