Hong Kong scores well in cost of living survey

Hong Kong is ranked fourth among seven selected cities, according to the results of a comparative study on the cost of living for expatriates.

Topping the list of most expensive cities is Tokyo, followed by New York and London. Singapore was fifth, followed by Shanghai and Taipei.

The study was carried out by the Economic Analysis Division and the Census and Statistics Department. A private sector agent was commissioned to collect the updated data for comparisons on the cost of living in the seven cities.

Announcing the results today (November 29), the Government Economist, Mr K Y Tang, said the rankings in this latest round, with August 2002 as the reference month, were the same as those in the last round of the study in August 2001.

"Excluding housing costs, Tokyo remains at the top of the list, while London overtakes New York to become the second most expensive city. Hong Kong drops to fifth place, while Singapore advances to fourth," he said.

Analysed by major consumption category, Tokyo is the most expensive for 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 transport is highest in London. In the case of durable goods, Singapore ranks the dearest.

"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 40%. The cost of living in New York and London is also distinctly higher than in Hong Kong, by around 36% and 26% respectively," Mr Tang said.

"Compared with Hong Kong, the cost of living for expatriates in Singapore is around 9% lower, while in Shanghai it is around 25% and Taipei 28% lower."

Outlining the methodology adopted for the study, Mr Tang said it was similar to that of a standard consumer price survey.

For each of the seven cities, price data was collected on a total of 101 commodity or service items, chosen to represent a basket of consumer goods and services purchased by a typical US expatriate household across the seven cities. The items priced were sufficiently typical for the city itself yet also comparable across all selected cities.

The items were grouped into categories and sections and then expenditure weights were applied for the consumption pattern of a typical US expatriate household.

The report on the comparative study on cost of living for expatriates across the seven cities will be on the website of the Financial Services and the Treasury Bureau (http://www.info.gov.hk/hkecon).

End/Friday, November 29, 2002