New York overtakes Hong Kong as the most expensive city in the world for expats, new survey shows

Hong Kong has ended its four-year reign arsenic the astir costly metropolis globally for expatriates — surpassed by New York which took archetypal place, according to a caller survey. 

ECA International's latest "Cost of Living" probe ranked 207 cities based connected a handbasket of day-to-day goods and services commonly purchased by assignees. 

That includes food, utilities, nationalist transport and basal needs specified arsenic household goods. The probe aims to assistance organizations cipher cost-of-living allowances for assignees, the information institution said.

Still, Hong Kong retained its presumption arsenic the astir costly determination successful Asia.

"Costs for goods and services successful Hong Kong roseate astatine multi-year highs, showing that the metropolis was not spared from the question of ostentation we person seen passim the satellite successful the past year," said Lee Quane, determination manager for Asia astatine ECA International.

"In spite of this, Hong Kong fell successful our rankings arsenic the summation successful prices of day-to-day goods and services was tempered by falls successful accommodation costs successful the city."

Hong Kong has hiked its owe involvement rates to support gait with the U.S. Federal Reserve — and location prices plunged to a five-year debased successful October arsenic borrowing costs soar. The study is based connected accusation collected successful March, from 207 cities successful 120 countries, said ECA. Reports suggest residents of Hong Kong near the metropolis successful droves past year — owed to Covid-19 restrictions and what they spot arsenic an erosion of antiauthoritarian norms.

The 2nd astir costly determination successful Asia is Singapore, which roseate 8 places from past year's ranking.

Singapore is besides the 5th astir costly determination globally, the survey showed, marking the archetypal clip it has risen into the apical five.

This ascent was chiefly driven by "rapidly rising accommodation costs," according to the ECA. 

A caller study from the Urban Land Institute (ULI) Asia Pacific Centre for Housing recovered that backstage rental homes successful Singapore had the highest monthly rent successful Asia Pacific astatine $2,600 — "far exceeding" different cities.

Earlier relaxation of Covid-19 restrictions successful Singapore drove up request for rental accommodation, which was "not matched" by an summation of supply, said Quane.

However, Singapore is 1 of lone a fewer locations successful Asia that moved up the rankings this year.

Nearly each the Asian locations surveyed fell successful the rankings, the study said, citing "lower rates of ostentation comparative to different regions" that were surveyed.

"[This] indicated that expatriates volition find surviving successful Asian cities comparatively cheaper than the remainder of the satellite successful the past year," the study said.

Most costly locations for expatriates successful Asia

For example, Chinese cities similar Shanghai and Guangzhou person fallen retired of the planetary apical 10 and present fertile arsenic the 13th and 14th astir costly cities successful the world.

"China's comparatively precocious emergence from Covid-19 related restrictions had an interaction connected its economy," explained Quane.

"The yuan is weaker against the U.S. dollar than it was past year, resulting successful little costs successful its cities."

Similarly, currency depreciation "counteracted" ostentation rates successful Japanese cities — Tokyo, which was apical 5 globally successful the past 5 years, dropped 5 places to 10th, ECA said. 

"Tokyo's autumn successful our rankings makes it a comparatively cheaper determination successful examination to caller years," explained Quane.

"However, for companies moving unit from Japan … [it] means that companies whitethorn person to wage much successful bid to guarantee that their employees' purchasing powerfulness is protected whilst they are overseas."

In the U.S., rankings for each cities surged this twelvemonth owed to the spot of the U.S. dollar and "significant rises" successful rental costs, said the report.

According to the survey, New York moved up 1 spot to archetypal place, portion San Francisco moved up 4 places from 11th to 7th.