Living in a major city in Asia can come with a hefty price tag, especially in cities like Hong Kong and Singapore. According to data from Numbeo, the monthly rent in Shanghai’s city-center can cost approximately $2,700. However, in Hong Kong and Singapore, a family of four can expect to spend an estimated $9,000 a month to live in these cities. These two cities are considered global financial hubs and attract expats from around the world, which in turn can drive prices up.
What Makes Singapore Attractive to Expats?
According to Mercer, a HR consultancy, Singapore is one of the most attractive locations for people looking to boost their careers. Factors such as the country’s “strong” economic situation and numerous opportunities make it appealing to expats. The high demand for housing in Singapore has contributed to the rocketing increase in housing rentals since 2022. However, recent data shows that prices have begun to stabilize in recent months. In fact, for the second consecutive quarter, private housing rentals in Singapore fell by 1.9% in the first quarter of 2024, following a 2.1% decrease in the previous quarter.
The Expensive Rental Market in Hong Kong
Hong Kong has always been known for having one of the most expensive rental markets in the world. This is due to the limited supply of housing and the significant influx of people moving into the city. As a result, the demand for housing far exceeds the supply, driving rental prices up. Mercer’s report highlights how the high cost of living in Hong Kong can be a deterrent for some expats considering a move to the city.
Living in cities like Hong Kong and Singapore can be costly, especially for expatriates. The high demand for housing, limited supply, and the influx of expats contribute to the expensive cost of living in these cities. While Singapore may be more attractive to expats due to its economic stability and opportunities, both cities continue to face challenges in the housing market. Expats looking to relocate to these cities should be prepared for the high cost of living that comes with the many benefits of living in vibrant, cosmopolitan Asian cities.