Singapore has again been ranked the world’s most expensive city to live in, and now the only Asian city in the top five.
The rankings are contained within The Economist Intelligence Unit’s Worldwide Cost of Living Survey, a relocation tool that compares the cost of living between 133 cities worldwide using New York as a base city.
Singapore leads for the second year running, the unchanged top five made up by Paris, Oslo, Zurich and Sydney.
But The EIU says that despite topping the ranking, Singapore still offers relative value in some categories. For basic groceries, Singapore is only 11 per cent more expensive than New York, but it is the joint most expensive place in the world alongside Seoul to buy clothes.
The malls of Orchard Rd offer a price premium more than 50 per cent higher than New York.
Most significantly, Singapore’s complex Certificate of Entitlement system makes car prices excessive, with Singaporean and transport costs almost three times higher than in New York.
Tokyo, which was replaced as the world’s most expensive city only last year, has fallen to 11th place as low inflation and a weak Yen take their toll. Seoul is rising quickly up the rankings: 50th five years ago, it has now made the top 10.
Karachi in Pakistan and Bangalore in India offer the best value for money. Indian cities make up four of the six cheapest. Structurally low wages and price subsidies on some staples have made for a highly price sensitive market and it seems that falling oil prices will add further weight to this.
“The situation of an unchanged top five is very rare for the Worldwide Cost of Living Survey and disguises some significant global drivers that are impacting the cost of living everywhere,” said Jon Copestake, chief retail & consumer goods analyst at EIU and editor of the report.
“In fact, a look at the data six months ago would have shown a different top five, and things are changing quickly, especially with the fall in oil prices. Rebasing the survey to today’s exchange rates would put Zurich top, highlighting how fluid the global cost of living has become.”
A summary of the full report can be downloaded here.
