SINGAPORE: Singapore, which was recently announced as the most expensive city in the world, together with Zurich, is the fifth best city for expatriates in the region, a recent Bloomberg analysis says.
The report notes that though Singapore’s high living costs—rentals to car ownership—may deter some foreigners, who may also have difficulty finding places for their children in private schools, other expats favour Singapore’s “global” approach and investment in the future.
Tokyo took the top spot in the study that examined a number of factors, including rent, taxes, education, and potential salary increases. Hong Kong is in second place, followed by Shanghai and Sydney in third and fourth places, respectively.
Tokyo has stable rental prices, and costs at international schools are relatively low, Bloomberg noted, adding that “residents can buy a Tesla Model Y Performance for about US$50,000” (S$66,300). In contrast, earlier this year in Singapore, the exact vehicle cost S$184,883 without the COE and at a reduced price.
Costs of living are generally lower in Tokyo than in other cities in the region, but income tax is higher. Hong Kong, on the other hand, has the lowest personal income tax rate and the highest projected salary increase for next year.
Japan’s “Prime Minister Fumio Kishida is rolling out the red carpet for global high earners, including a fast-track to permanent residency. So perhaps it’s no surprise that the city’s foreign worker population has risen in recent years,” Bloomberg says.
Bloomberg also points out that Tokyo has more Michelin-starred eateries—183—of all the cities on the list. Hong Kong has 78, Shanghai has 51, and Singapore, 55. Sydney has no Michelin guide but has 141 fine dining restaurants.
Based on projections from UK recruitment firm Michael Page for this year, Sydney has the highest annual salary for finance managers, US$114,189 (S$151,000), followed by Tokyo US$98,094 (S$130,000), Hong Kong US$92,307 (S$122,000), and Singapore US$84,109 (S$111,000). In Shanghai, it’s US$53,439 (S$71,000).
As for Hong Kong, the analysis says, “The government is keen to revive the city’s status as an international financial hub. Hong Kong’s leader, John Lee, has taken action, including slashing levies for foreigners buying homes and launching a visa plan for high-income workers. China’s policymakers this month convened bankers in Hong Kong to seek ways to bolster confidence.”
The cost of living in Shanghai has moderated, and buying a Tesla Model Y Performance is the cheapest among the five cities. But Bloomberg notes the city’s relatively high tax rate and international school fees.
Sydney also has high taxes and other living costs, and good public schools are in its favor. Its lifestyle and the fact that English is the majority language make it appealing to expats.
Read Bloomberg’s full analysis here. /TISG
Read also: MTI: Singapore’s top ranking in world’s most expensive cities list does not reflect the cost of living
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