Hong Kong is the fifth most expensive location to live in Asia, according to ECA International’s recent Cost of Living Ranking. It is the most expensive location in Greater China followed by Shanghai, Beijing and Taipei. If you’re looking to locate staff somewhere cheaper,
try Xian which was the cheapest Chinese city surveyed, ranked 116 places below Hong Kong in the world ranking.
With prices mainly remaining stable, it has been exchange rate fluctuations that have contributed the most to changes in the cost of living for international assignees over the past year. Lee Quane, Regional Director Asia, ECA International explained, “Hong Kong’s rise in the Asian ranking is due largely to the price of goods and services increasing at a slightly faster rate than nearby locations.” He added that the weakening of the dollar against many currencies, notably the euro, had meant that in the worldwide context it has become cheaper, dropping to 51st place worldwide from 33rd since last year.
The recent economic recovery has led to a weakening of the US dollar, so that when assignees are sent out of locations pegged to the greenback, such as Hong Kong, and moved to locations such as Singapore, Australia, Korea Republic and Japan, they will require higher cost of living allowances than they received last year.
Paul Arkwright
Publisher
