Hong Kong has ended its four-year reign as the most costly metropolis globally for expatriates — surpassed by New York which took first place, in accordance with a brand new survey.
ECA Worldwide’s newest “Value of Dwelling” analysis ranked 207 cities primarily based on a basket of day-to-day items and providers generally bought by assignees.
That features meals, utilities, public transport and fundamental wants reminiscent of family items. The analysis goals to assist organizations calculate cost-of-living allowances for assignees, the information firm stated.
Hong Kong fell in our rankings as the rise in costs of day-to-day items and providers was tempered by falls in lodging prices within the metropolis.
Lee Quane
ECA Worldwide
Nonetheless, Hong Kong retained its place as the most costly location in Asia.
“Prices for items and providers in Hong Kong rose at multi-year highs, displaying that the town was not spared from the wave of inflation we’ve seen all through the world up to now yr,” stated Lee Quane, regional director for Asia at ECA Worldwide.
“Despite this, Hong Kong fell in our rankings as the rise in costs of day-to-day items and providers was tempered by falls in lodging prices within the metropolis.”
Hong Kong has hiked its mortgage rates of interest to maintain tempo with the U.S. Federal Reserve — and residential costs plunged to a five-year low in October as borrowing prices soar. The report is predicated on info collected in March, from 207 cities in 120 international locations, stated ECA. Reviews counsel residents of Hong Kong left the town in droves final yr — as a consequence of Covid-19 restrictions and what they see as an erosion of democratic norms.
Singapore strikes up
The second costliest location in Asia is Singapore, which rose eight locations from final yr’s rating.
Singapore can also be the fifth costliest location globally, the survey confirmed, marking the primary time it has risen into the highest 5.
This ascent was primarily pushed by “quickly rising lodging prices,” in accordance with the ECA.
A latest report from the City Land Institute (ULI) Asia Pacific Centre for Housing discovered that non-public rental properties in Singapore had the best month-to-month lease in Asia Pacific at $2,600 — “far exceeding” different cities.
Earlier leisure of Covid-19 restrictions in Singapore drove up demand for rental lodging, which was “not matched” by a rise of provide, stated Quane.
Nonetheless, Singapore is one among only some places in Asia that moved up the rankings this yr.
Almost all of the Asian places surveyed fell within the rankings, the report stated, citing “decrease charges of inflation relative to different areas” that had been surveyed.
“[This] indicated that expatriates will discover dwelling in Asian cities comparatively cheaper than the remainder of the world up to now yr,” the report stated.
Most costly places for expatriates in Asia
Hong KongSingapore SeoulTokyoShanghai Guangzhou Shenzhen Beijing Taipei Yokohama
For instance, Chinese language cities like Shanghai and Guangzhou have fallen out of the worldwide high 10 and now rank because the thirteenth and 14th costliest cities on the earth.
“China’s comparatively late emergence from Covid-19 associated restrictions had an impression on its economic system,” defined Quane.
“The yuan is weaker in opposition to the U.S. greenback than it was final yr, leading to decrease prices in its cities.”
Equally, forex depreciation “counteracted” inflation charges in Japanese cities — Tokyo, which was high 5 globally up to now 5 years, dropped 5 locations to tenth, ECA stated.
“Tokyo’s fall in our rankings makes it a comparatively cheaper location compared to latest years,” defined Quane.
“Nonetheless, for corporations shifting employees from Japan … [it] signifies that corporations might must pay extra with the intention to be certain that their workers’ buying energy is protected while they’re abroad.”
New York on high
Within the U.S., rankings for all cities surged this yr as a result of power of the U.S. greenback and “important rises” in rental prices, stated the report.
In response to the survey, New York moved up one spot to first place, whereas San Francisco moved up 4 locations from eleventh to seventh.
