Singapore Among World’s Most Expensive Cities

16.02.2012

Moving to Singapore? Start saving: The city-state is one of most expensive cities in the world – 42% more expensive than New York – topping London, Frankfurt and Hong Kong.

The Southeast Asian city joins Tokyo, Osaka and Kobe as one of the world’s top ten most expensive cities, according to the Economist Intelligence Unit’s annual cost-of-living survey, increasingly proving that Asian cities are no longer just a cheaper outpost for expats and multinationals. Though a European city – Zurich – is still the world’s most expensive, Tokyo was the runner up, with Singapore now listed as the world’s 9th most expensive city. Singapore was listed as the 6th most expensive last year, but remarkably was ranked 97th in 2001.

The survey uses prices of goods and services such as food, transportation, housing, utilities, private schools and domestic help to calculate scores for each city, using New York as its base with a score of 100. Zurich and Tokyo scored 170 and 166, respectively, indicating that they are about 70% and 66% more expensive to live in than New York.

Australian cites, too, were well-represented on the list by Sydney (No. 7) and Melbourne (No. 8, though at least it can claim it makes up for the cost in livability). While Japan has long been known as an expensive place to live — Tokyo’s gas prices are 71% higher than New York’s — the emergence of Australia and Singapore on the list is a more recent phenomenon.

Singapore’s rise is notable, since less than a decade ago it was considered a cheap city by Western standards. Just last year, a kilo of bread would have cost US$2.86, according to the Economist’s data, but now costs US$3.19 – an 11% increase from the year before.

The rise of home prices and basic goods in the city-state has for years been a sticking point for many disgruntled Singaporeans, many of whom say government policies to allow more rich expatriates to move to the city has helped push up the cost of living. In recent months, the government has put in place various cooling measures to address high property prices, which are slowly coming down.

Jon Copestake, editor of the survey, cited exchange-rate movement as “the main driver of cost-of-living growth in Singapore, relative to other cities.” The Australian cities rose for the same reason: The Australian dollar rose sharply in value last year, which helped push its two biggest cities up the charts.

Asia is also home to the world’s cheapest places to live, particularly in South Asia. Karachi, Pakistan, came in 131st out of 131 cities, with a score of 46. This makes it three times cheaper than Singapore. Also in the bottom 10: Mumbai; New Delhi; Kathmandu, Nepal; and Dhaka, Bangladesh. India and Pakistan’s cheap labor and land costs are making the area “attractive to those bargain-hungry visitors or investors willing to brave some of the security risks that accompany such low prices,” the survey said.