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Hong Kong remains the most expensive location in the world

  • Hong Kong retains position as most expensive location for overseas workers to live and work
  • Five of the top ten most expensive locations in the world are now in Asia, as Chinese cities climb in the rankings
  • Tokyo overtakes New York to move into second place in the rankings, but Singapore drops to 13th

Hong Kong has again been named as the most expensive location in the world for overseas workers to live. This was one of the findings of the latest Cost of Living research published by ECA International, the world's leading provider of knowledge, information and software for the management and assignment of employees around the world.

“Despite falling rental prices and a weakened currency, Hong Kong has retained its spot as the most expensive location in the world for expatriates to live and work” said Lee Quane, Regional Director – Asia at ECA International. “The Hong Kong dollar was weaker over the past 12 months than many other major currencies such as the euro and yuan, however, with New York facing similar issues, and overall inflation being higher in Hong Kong than many other locations in our top 10 Hong Kong retained its top spot while New York fell two places to fourth in the rankings.”

ECA International has been conducting research into cost of living for 50 years. It carries out two main surveys per year to help companies calculate cost of living allowances so that their employees' spending power is protected while on international assignment. The surveys compare a basket of like-for-like consumer goods and services commonly purchased by assignees in over 480 locations worldwide. ECA’s accommodation data is also factored in, comparing rental costs in areas typically inhabited by expatriate staff in over 400 locations worldwide.

Asia Highlights

The majority of Chinese cities have risen in the latest rankings, with Guangzhou joining Shanghai in the global top ten for the first time. Shenzhen and Beijing are also in the top ten most expensive cities in Asia and the top 20 globally.

Quane said “The yuan has enjoyed a strong year as the Chinese economy bounced back quickly from the pandemic making most locations in the country more expensive for overseas workers than in previous years. The Pearl River Delta remains an attractive option for many international businesses and Guangzhou and Shenzhen are expensive for overseas workers due to high rents and growing demand for properties in these cities.”

Singapore has dropped one place to 13th in the global rankings after falling below the cities of Guangzhou and Shenzhen but pushing above San Francisco. 

“Although Singapore dropped one spot in the rankings this is mainly because of the changes in other cities around them in the list. With prices in Singapore quite stable, the change in costs for overseas workers in Singapore will depend primarily on currency changes. The Singapore dollar has been a little weaker than the yuan in the last 12 months - thus causing it to fall behind Shenzhen and Guangzhou in our rankings” explained Quane.

Thai and Vietnamese locations continued to fall in the rankings, as their tourism-dependent economies still seek to recover from the pandemic. Bangkok dropped 11 places to 34th, while Hanoi dropped twenty places and fell out of the global top 100 to 115th most expensive location. 

“Cities that would have experienced high levels of tourism and overseas visitors before the Covid-19 pandemic have sunk in the rankings since the start of 2020, as their economies take a hit due to heavily restricted international travel. These effects can be seen in weaker currencies, with the baht and the dong significantly weaker against the euro and lower rental prices in properties targeted at foreigners. Bangkok and Hanoi have seen rents drop over the past 18 months as demand falls in these locations.” said Quane.

Global Highlights

Elsewhere in the world, US locations fell in the global rankings after a tough period for the US dollar. San Francisco dropped out of the global top ten to 15th place and New York dropped two places to 4th globally.

Quane said “The US dollar has struggled against other major currencies in recent months, in part due to the large stimulus packages introduced by Presidents Trump and Biden, and this has caused drops for US cities in the rankings. This has affected every US city in our rankings, including New York which has been overtaken by Tokyo and Geneva this year. New York was among a group of large US cities, including San Francisco and Chicago, that saw city centre rental prices drop as people moved away from the cities due to the rise in home working during the pandemic allowing people to work from anywhere.”

In contrast, Australian locations all rose significantly in the latest rankings, as the country recovered strongly after a series of major Covid-19 lockdowns in some states. Sydney rose 17 places into the top 50 but Perth saw the biggest jump of any location in the rankings, rising 51 places to 74th position globally.

“Australia has seen a significant rebound from this time last year when many residents were experiencing strict lockdowns in the face of the Covid-19 pandemic. As these restrictions have eased, the Australian economy has rebounded well thanks to a strong demand for its commodity exports. This has strengthened the Australian dollar pushing all Australian cities up in the rankings as the currency now goes further abroad, though with the country currently closed to most overseas travel, it has not been possible for many workers to experience these benefits. Sydney now sits in the top 50 most expensive locations globally and Melbourne and Canberra just outside at 51st and 52nd respectively” said Quane.

The vast majority of Eurozone and UK cities moved up the rankings due to strong currencies and despite low levels of inflation.

Quane explained “The euro and pound both grew in strength in comparison to the weaker US dollar as European economies rebounded after pandemic restrictions eased and Brexit uncertainty subsided. This has meant that many cities in Europe have risen in the rankings from last year as visitors will find it more expensive to buy the same goods and services in their home currency, with locations such as Vienna and Munich moving into the global top 50 and London climbing one place to enter the top 5 most expensive locations for expats.”

Rio de Janeiro was the biggest faller in the rankings this year, dropping 52 places to 163rd despite rising inflation, as the Brazilian real continued to weaken amidst high Covid-19 rates and historically low interest rates.

Top ten most expensive locations for expatriates – Asia
Location
2021 global ranking
2020 global ranking
Hong Kong
1
1
Tokyo, Japan
2
3
Seoul, Korea Republic
8
9
Shanghai, China
9
10
Guangzhou, China
10
13
Yokohama, Japan
11
11
Shenzhen, China
12
15
Singapore
13
12
Beijing, China
16
18
Taipei, Taiwan
21
29
Top twenty most expensive locations for expatriates – global
Location
2021 global ranking
2020 global ranking
Hong Kong
1
1
Tokyo, Japan
2
3
Geneva, Switzerland
3
4
New York, USA
4
2
London, UK
5
6
Zurich, Switzerland
6
7
Tel Aviv, Israel
7
5
Seoul, Korea Republic
8
9
Shanghai, China
9
10
Guangzhou, China
10
13
Yokohama, Japan
11
11
Shenzhen, China
12
15
Singapore
13
12
Copenhagen, Denmark
14
19
San Francisco, USA
15
8
Beijing, China
16
18
Bern, Switzerland
17
17
Jerusalem, Israel
18
14
Oslo, Norway
19
33
Brazzaville, Congo
20
28

-ENDS-

Notes to Editors

About ECA's Cost of Living Ranking

ECA International's cost of living rankings combine ECA’s Cost of Living research and Accommodation research to enable a comparison of costs faced by expatriates around the world in 208 cities in 121 countries and territories. 

This comparison of cost of living is calculated on a base composed of various developed countries and is used to reflect an international lifestyle. Other indices available from ECA reflect specific city-to-city comparisons and different levels of shopping efficiency.

ECA’s Cost of Living research

ECA International’s cost of living research is carried out in March and September using a basket of day-to-day goods and services commonly purchased by assignees. The data used above refers to the March 2021 data collection period with changes compared to the March 2020 period. ECA’s Cost of Living rankings began in 2005.

Cost of living indices are used by ECA clients to calculate cost of living allowances for assignees.  The research covers:

  • Food: Groceries; dairy produce; meat and fish; fresh fruit and vegetables 
  • Basic: Household goods; recreational goods; general services; leisure services
  • General: Clothing; electrical goods; motoring; meals out; alcohol and tobacco
  • Utilities costs
  • Public transport

ECA’s Accommodation research

This ranking uses data from ECA's latest Accommodation reports. The reports have been published annually since 1996.

The reports provide comprehensive and reliable information for locations worldwide on the rental trends, types of accommodation and districts commonly sought by expatriates. To ensure impartiality and to maintain the accuracy of information, data from a number of sources is used to compile each accommodation report. ECA uses a global network of estate agents, relocation agents and extensive in-house research into worldwide property markets to establish and verify the housing data in the reports. 

About ECA International

ECA International is the market-leading provider of knowledge, information and technology that enables businesses to manage their international reward programmes.  

Partnering with thousands of clients on every continent, we provide a fully-integrated suite of quality data, specialist software, consultancy and training. Our unparalleled insights guide clients as they mobilise their most valuable resource: people.

We make the complex world of international mobility simple, providing clients with the expertise and support they need to make the right decisions - every time.

ECA International: Mobility solutions for a world that’s constantly moving.

For further information, please contact:

Jack Firth
+44 (0)20 7351 5000
jack.firth@eca-international.com

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