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Comparative Study on Cost of Living for Expatriates across Cities
The study The Economic Analysis Division in collaboration with the Census and Statistics Department has commissioned a private sector agent to collect updated data for comparing the cost of living for expatriates in seven selected cities, including Hong Kong, London, New York, Tokyo, Singapore, Taipei and Shanghai. The results of the present round with August 2001 as reference month are presented below, along with those in the last round with September 2000 as reference month. Summary results 2. Tokyo is shown up as the most expensive city among the seven cities included, when the comparison is standardised to the consumption pattern of a typical US expatriate household. This is followed by New York and London. Hong Kong ranks fourth, followed by Singapore, Shanghai and Taipei(1). The rankings are similar to those in the last round of the study. 3. Analysed by major consumption category, Tokyo tops the list in the costs of food, utilities, clothing and miscellaneous goods, while New York has the highest costs of housing, alcoholic drinks and tobacco, and consumer services. The cost of durable goods is highest in London. Yet the cost of transport is the highest in Shanghai. 4. Table 1 gives the summary rankings of cost of living for expatriates in the seven cities covered by the study. 5. Taking Hong Kong as the reference city for comparison, in overall terms the cost of living for expatriates in Tokyo is considerably higher than in Hong Kong (by around 34%). The costs of the various major consumption categories, except those of housing and of alcoholic drinks and tobacco, are all much higher in Tokyo. 6. The cost of living in New York is significantly higher than in Hong Kong (by around 24%). This is mainly due to the much higher costs of consumer services, utilities, alcoholic drinks and tobacco, durable goods and housing in New York. 7. As to London, the cost of living there is also distinctly higher than in Hong Kong (by around 16%). The costs of durable goods, transport, utilities and consumer services in London are markedly higher than in Hong Kong. 8. The cost of living in Singapore is appreciably lower than in Hong Kong (by around 10%). While the costs of housing, utilities, miscellaneous goods and consumer services are lower in Singapore, the costs of durable goods and transport are markedly higher in Singapore. 9. The cost of living in Shanghai is significantly lower than in Hong Kong (by around 17%). The costs of transport and durable goods are higher in Shanghai than in Hong Kong, while the costs of housing, utilities, alcoholic drinks and tobacco, miscellaneous goods and consumer services are markedly lower. 10. The cost of living in Taipei is also considerably lower than in Hong Kong (by around 29%), mainly due to its much lower costs of housing, utilities, and alcoholic drinks and tobacco. On the other hand, its costs of clothing and durable goods are higher. 11. Comparing the results in the present round with those in the last round, the cost of living in Tokyo remains substantially higher than in Hong Kong. Yet the depreciation of the Japanese yen against the Hong Kong dollar, by about 12% between September 2000 and August 2001, has narrowed the difference distinctly. The cost of living in New York is still considerably higher than in Hong Kong, and the difference has widened moderately. This is partly due to the continuous downward adjustment in local consumer prices in Hong Kong over the period. As to London, its cost of living is still significantly higher than in Hong Kong, and the difference shows little change. 12. The cost of living in Singapore has decreased modestly relative to that in Hong Kong. This is largely due to a relative lowering of the costs of food, durable goods, miscellaneous goods and transport in Singapore as against Hong Kong. On the other hand, the cost of living in Shanghai has increased moderately relative to that in Hong Kong. This is mainly due to a relative lifting of the costs of transport and housing in Shanghai as against Hong Kong. As to Taipei, its cost of living has decreased moderately relative to that in Hong Kong. This is largely due to the depreciation of the New Taiwan dollar against the Hong Kong dollar, by about 9% between September 2000 and August 2001. 13. Table 2 gives the summary ratios of cost of living for expatriates in the seven cities. 14. The data source, methodology and technical limitations of the study are described in the Annex.
(1) Some private sector agencies do not include housing cost in their assessment of the overall cost of living. Excluding housing cost, the present round of the study indicates that Tokyo remains at the top of the list, followed by New York and London. Hong Kong recedes to the fifth place and shares the same ranking with Shanghai, while Singapore advances to the fourth. Taipei remains the lowest cost city amongst the seven cities covered by the study. |