Hong Kong has actually ended its four-year reign as the most pricey city internationally for migrants– exceeded by New York which took top place, according to a brand-new study.
ECA International’s most current “Cost of Living” research study ranked 207 cities based upon a basket of daily products and services typically bought by assignees.
That consists of food, energies, public transportation and standard requirements such as home products. The research study intends to assist companies compute cost-of-living allowances for assignees, the information business stated.
Still, Hong Kong maintained its position as the most pricey area in Asia.
“Costs for goods and services in Hong Kong rose at multi-year highs, showing that the city was not spared from the wave of inflation we have seen throughout the world in the past year,” stated Lee Quane, local director for Asia at ECA International.
“In spite of this, Hong Kong fell in our rankings as the increase in prices of day-to-day goods and services was tempered by falls in accommodation costs in the city.”
Hong Kong has actually treked its home mortgage rate of interest to equal the U.S. Federal Reserve– and house costs plunged to a five-year low in October as obtaining expenses skyrocket. The report is based upon info gathered in March, from 207 cities in 120 nations, stated ECA. Reports recommend citizens of Hong Kong left the city in droves in 2015– due to Covid-19 limitations and what they view as a disintegration of democratic standards.
Singapore goes up
The 2nd most pricey area in Asia is Singapore, which increased 8 locations from in 2015’s ranking.
Singapore is likewise the 5th most pricey area internationally, the study revealed, marking the very first time it has actually increased into the leading 5.
This climb was mainly driven by “rapidly rising accommodation costs,” according to the ECA.
A current report from the Urban Land Institute (ULI) Asia Pacific Centre for Housing discovered that personal rental houses in Singapore had the greatest regular monthly lease in Asia Pacific at $2,600– “far exceeding” other cities.
Earlier relaxation of Covid-19 limitations in Singapore increased need for rental lodging, which was “not matched” by a boost of supply, stated Quane.
However, Singapore is among just a few areas in Asia that went up the rankings this year.
Nearly all the Asian areas surveyed fell in the rankings, the report stated, mentioning “lower rates of inflation relative to other regions” that were surveyed.
“[This] showed that migrants will discover living in Asian cities fairly more affordable than the remainder of the world in the previous year,” the report stated.
Most pricey areas for migrants in Asia
- Hong Kong
For example, Chinese cities like Shanghai and Guangzhou have actually fallen out of the international top 10 and now rank as the 13 th and 14 th most pricey cities worldwide.
“China’s relatively late emergence from Covid-19 related restrictions had an impact on its economy,” discussed Quane.
“The yuan is weaker against the U.S. dollar than it was last year, resulting in lower costs in its cities.”
Similarly, currency devaluation “counteracted” inflation rates in Japanese cities– Tokyo, which was leading 5 internationally in the previous 5 years, dropped 5 locations to 10 th, ECA stated.
“Tokyo’s fall in our rankings makes it a relatively cheaper location in comparison to recent years,” discussed Quane.
“However, for business moving personnel from Japan … [it] implies that business might need to pay more in order to make sure that their staff members’ buying power is safeguarded whilst they are overseas.”
New York on top
In the U.S., rankings for all cities rose this year due to the strength of the U.S. dollar and “significant rises” in rental expenses, stated the report.
According to the study, New York went up one area to top place, while San Francisco went up 4 locations from 11 th to 7th.