HK named the second most expensive location in the world

Hong Kong ranked as the second most expensive city to live in as an expat, while New York was named the most expensive location in the world, according to a new study from research firm ECA International.  

Soaring inflation and rising accommodation costs were cited as reasons for New York topping the firm's Cost of Living Rankings for 2023. Geneva and London remained third and fourth while skyrocketing rents saw Singapore crash into the top five.  

Lee Quane, the regional director for Asia of ECA, said the housing market in Hong Kong faced a weakening demand while the rents continued to decline, which offset the impact of rising prices for goods and services under the influence of global inflation.  

Singapore's move bucks a general trend among Asian cities of slipping down the rankings, partly attributed to lower inflation rates relative to other regions. The Southeast Asian financial hub's rise "was due largely to major increases in accommodation costs," said Quane.   

Increased demand for rental homes, partially driven by the earlier relaxation of Covid-19 restrictions, was not matched by corresponding increases in the supply of accommodation.  

ECA analyzes the cost of consumer goods and services, factoring in rental prices in areas typically inhabited by expats, to rank 207 cities in 120 countries and territories around the world.  

Chinese cities fell in the rankings due to the impact of a weaker currency and lower inflation rates relative to other countries.  

The rankings for all US cities surged on the strong dollar and high inflation, with San Francisco breaking into the top 10.

(Staff reporter and Bloomberg)