10 Cities with the Highest Cost of Living in the World, New York Overtakes Hong Kong at the Top Position

Dream - ECA International's research places New York as the city with the highest cost of living in the world. The city in the United States overtakes Hong Kong.

Previously, Hong Kong held the top position for four years, but now it falls to second place.

ECA International's survey ranks 207 cities based on the prices of goods and services commonly purchased by their residents. With information collected in March 2023, from 207 cities in 120 countries.

The cost of living referred to includes food, utilities, public transportation, and basic necessities such as household goods.

The decline in Hong Kong's ranking is due to the increase in the prices of goods and services, which is offset by a decrease in accommodation costs in the city.

Although overtaken by New York, Hong Kong maintains its position as the most expensive city to live in Asia.

"The cost of goods and services in Hong Kong has reached the highest level in several years, indicating that this city is not immune to the inflationary wave we have seen worldwide in the past year," said Lee Quane, Regional Director for Asia at ECA International, quoted from CNBC International, Thursday, June 8, 2023.

Hong Kong has also raised its mortgage interest rates to offset the US Federal Reserve, and house prices in the city have fallen to a five-year low in October 2022 due to soaring borrowing costs.

In its report, ECA shows that Hong Kong residents flocked out of the city last year due to Covid-19 restrictions and what they see as an erosion of democratic norms.

Here is a list of the top 10 cities with the highest cost of living according to ECA International.

1. New York, United States
2. Hong Kong
3. Geneva, Switzerland
4. London, England
5. Singapore
6. Zurich, Switzerland
7. San Francisco, United States
8. Tel Aviv, Israel
9. Seoul, South Korea
10. Tokyo, Japan

Surpassing Hong Kong, Private Home Prices in Neighboring Country Indonesia Become the Most Expensive in Asia Pacific

Dream - The latest report from the Urban Land Institute (ULI) Asia Pacific Center for Housing's Home Attainability Index states that private homes in Singapore are now the most expensive in the Asia Pacific region, surpassing Hong Kong.

The report shows that the average price of private homes in Singapore reached US$1.2 million or around Rp17.9 billion in 2022, more expensive than Hong Kong, which is only US$1.16 million or equivalent to Rp17.3 billion.

Rental homes in Singapore also have the highest monthly rent prices in the Asia Pacific region, with a price of US$2,600 or Rp38.8 million, far exceeding other cities such as Sydney, Melbourne, and Hong Kong.

The report, according to CNBC International, uses government statistics from 45 cities in nine markets in the Asia Pacific, measuring housing attainment in relation to average household income.

ULI assesses that house prices in Hong Kong fell substantially in 2022, along with a significant increase in mortgage interest rates as Hong Kong offsets the US Federal Reserve.

In October 2022, house prices in Hong Kong fell to a five-year low due to rising interest rates driving up borrowing costs.

The ULI report states that the local property market also caused the average house prices in Hong Kong to fall by 8.7 percent, from US$1.27 million in 2021 to around US$1.16 million in 2022.

Meanwhile, private homes in Singapore surpass Hong Kong as the most expensive in Asia-Pacific, with average prices increasing by over 8 percent last year.

Here is a list of cities with the most expensive private homes in the Asia Pacific region:

Singapore: US$1,200,087

Hong Kong: US$1,155,760

Sydney, Australia: US$980,209

Melbourne, Australia: US$716,200

Shenzhen, China: US$626,964

Rental homes in Singapore also have the highest monthly rent in the Asia Pacific region, increasing by almost 30 percent in 2022.

ULI attributes the increase in rent and house prices in Singapore to various factors such as increased migration, slowing building completions, and young professionals moving out of their multi-generational family homes to gain more space and freedom.

As for houses and apartments in Sydney, Melbourne, and Brisbane, they also experienced an average increase in monthly rent.

The average monthly rent for houses in Sydney reaches US$1,958, while apartment rents reach US$1,732.

"There has been a reversal of population movement back to the capital since the end of Covid-19 in 2022. This is likely one of the causes of the average rent increase in the country," said David Faulkner, President of ULI for Asia-Pacific to CNBC.

Here is a list of cities with the most expensive rental homes in the Asia Pacific region:

Singapore: US$2,596

Houses in Sydney, Australia: US$1,958

Apartments in Sydney, Australia: US$1,732

Hong Kong: US$1,686

Brisbane, Australia: US$1,657