Singapore
is 5th most expensive city for expats in Asia: survey
June 19, 2007
(SINGAPORE)
Singapore is now the fifth most expensive city for
expatriates in Asia and 14th most expensive in the world, according
to Mercer Human Resource Consulting's latest Cost of Living Survey.
The
survey covered 143 cities across six continents and measured the comparative
cost of over 200 items in each location, including housing, transport,
food, clothing, household goods and entertainment. It is used to help
multinational companies and governments determine compensation allowances
for their expatriate employees.
Rebecca
Powers, principal and senior consultant at Mercer, said: 'There have
been some significant changes in the ranking since last year. These
are primarily due to exchange rate fluctuations - in particular the
weakening of the US dollar and the strengthening of the euro.'
In Singapore, sharp increases in property prices have contributed
to the city moving one notch up the Asian ranking, overtaking Beijing
(20th globally).
The
cost of accommodation of international standards has also pushed Indian
cities up the rankings. Mumbai (52nd globally) moved into the Asian
top 10 from 14th place last year.
Shenzhen
also made it to the top 10 this time, squeezing out Hanoi and Ho Chi
Minh City.
However,
with the exception of Singapore and Indian cities, Asian cities have
dropped in the global rankings. Although Asia dominated the top five
positions, with Seoul, Tokyo and Hong Kong coming in respectively
at third, fourth and fifth positions globally, each of them has dropped
by a notch.
In
total, there are now only eight Asian cities in the global top 50,
as compared to 12 a year ago.
Chinese
cities fell in the global rankings due to depreciation of the yuan
against the euro, low inflation and stable property rentals. The report
said that accommodation costs have not escalated, because despite
the increasing demand for housing, supply of high-quality rentals
was sufficient.
Moscow
is the world's most expensive city for expatriates for the second
year running, due to the appreciation of the Russian rouble against
the US dollar and increasing accommodation costs.
London
leapfrogged the top three Asian cities to take second spot, on the
back of steep property rental costs and the strengthening of the pound
against the US dollar.
New
York was the priciest North American city again this year, but its
ranking fell from 10th to 15th. Los Angeles, coming in at 42, was
the only other North American city to rank in the global top 50.
Ms
Powers said: 'The decline of most US cities in the ranking can be
attributed to the depreciation of the US dollar against the euro and
other major currencies worldwide. The change reflects a reversal of
the situation experienced this time last year, when the majority of
US cities climbed the ranking due to the strength of the dollar.'
The
appreciation of the euro has resulted in some European cities moving
up the rankings. Notably, Stockholm rose from 36th to 23rd, while
Amsterdam moved from 41st to 25th.
In
Latin America, Sao Paulo (62nd) and Rio de Janeiro (64th) remain the
most costly. Asuncion in Paraguay is the least expensive among those
surveyed for the fifth year running.
