Living in a major city in Asia can be quite expensive, especially in cities like Hong Kong and Singapore. According to Numbeo, the monthly rent for a city-center apartment in Shanghai can cost around $2,700. However, the costs can be even higher in financial hubs like Hong Kong and Singapore.
Singapore and Hong Kong are popular destinations for expats looking to further their careers. The influx of expats in these cities can drive up prices, making it even more costly for residents. According to a report from HR consultancy Mercer, Singapore is particularly attractive to expats due to its strong economy and abundant opportunities. This can result in an increased cost of living for both locals and expats alike.
Housing Market Challenges
One of the major contributors to the high cost of living in Asian cities like Hong Kong and Singapore is the hot housing market. Limited housing supply and a high demand from incoming residents can lead to inflated rental prices. Hong Kong, in particular, has always been known for its expensive rental market, while Singapore has seen a significant increase in housing rentals in recent years. However, there are signs that prices are beginning to stabilize.
Singapore, for example, experienced a decrease in private housing rentals for the second consecutive quarter. In the first quarter of 2024, rental prices fell by 1.9%, following a 2.1% decline in the last quarter of 2023, according to the Singapore Urban Redevelopment Authority. This could indicate a more stable housing market in the future, providing some relief to residents struggling with high living costs.
Living in major Asian cities like Hong Kong and Singapore can be financially challenging due to the high cost of housing and living expenses. The influx of expats and limited housing supply can further exacerbate the situation, making it crucial for residents to carefully manage their finances in order to afford the high cost of living in these cities.