The High Cost of Living in Major Asian Cities

Living in a major city like Shanghai can come at a steep cost, with monthly rent in the city-center averaging around $2,700. However, according to Numbeo’s data, the real shock comes from cities like Hong Kong and Singapore, where the cost of living is even higher. A family of four in these cities can expect to spend an estimated $9,000 a month just to cover basic living expenses.

Being global financial hubs, both Singapore and Hong Kong are attractive locations for expats looking to advance their careers. This popularity among expats can often lead to an increase in prices, according to a report from HR consultancy Mercer. Factors such as Singapore’s strong economic situation and the abundance of opportunities make it an appealing destination for many.

In addition to the high cost of living, these cities also have competitive housing markets. Hong Kong, in particular, has always been known for its exorbitant rental prices due to the limited supply of housing and the influx of people moving into the city. Singapore has also experienced a surge in housing rentals in recent years, although prices have begun to stabilize in the past few months.

Despite the high cost of living, there seems to be a glimmer of hope for renters in Singapore. For the second consecutive quarter, private housing rentals in the city-state have decreased, with a 1.9% drop in the first quarter of 2024 following a 2.1% decline in the previous quarter. This downward trend may offer some relief to those struggling to afford the steep rental prices in these major Asian cities.

Living in major Asian cities like Hong Kong and Singapore comes with a high price tag, especially when it comes to rental prices. Expats looking to move to these cities should be prepared for the financial burden that comes with living in these global financial hubs. Despite the recent decline in rental prices in Singapore, the overall cost of living in these cities remains a significant challenge for many.