Living in a major city can come with a hefty price tag, especially in Asia. According to data from Numbeo, the monthly rent in Shanghai’s city-center costs approximately $2,700. However, Hong Kong and Singapore top the list for the cost of living in the region. A family of four can expect to spend an estimated $9,000 a month to live in one of these cities. These cities are global financial hubs that attract expats from around the world, ultimately driving prices up.
Singapore, in particular, is highly attractive to people looking to advance their careers. According to Tracey Ma, regional mobility leader, APAC at Mercer, factors such as the country’s “strong” economic situation and the numerous opportunities available make it an appealing destination for expats. The housing market in Singapore has also seen a significant increase in rental prices, although there has been some stabilization in recent months.
The Housing Market in Hong Kong
Hong Kong has always been known for having one of the most expensive rental markets in the world due to the limited supply of housing and the high demand from a growing population. The influx of people moving into the city further exacerbates the housing situation, driving prices even higher. Despite the challenges, many expats are still drawn to Hong Kong for its vibrant culture and bustling financial industry.
In Singapore, private housing rentals have seen a decrease for the second consecutive quarter. The rental prices fell by 1.9% in the first quarter of 2024, following a drop of 2.1% in the last quarter of 2023, as reported by Singapore’s Urban Redevelopment Authority. This trend suggests that the market may be stabilizing, offering some relief to residents and expats alike.
Living in expensive cities in Asia like Hong Kong and Singapore comes at a premium cost. While the opportunities and amenities offered in these cities are undeniable, the high cost of living can be a significant barrier for many individuals and families. Expats considering a move to these cities should carefully weigh the pros and cons before making a decision.