So where would you like to go and spend your retirement? Ever thought of becoming an expat and live in a new and exciting environment, well for those considering Hong Kong then this report may come as a bit of a disappointment. It’s certainly on my wish list as I look out on the grey sky of a Dublin Sunday morning watching the depressing UK news on the BBC
Hong Kong tops the record as the most expensive town in Asia Pacific for expatriates to live, as reported by a cost of living survey conducted by consultancy company ECA International.
The city is also the 2nd most expensive city internationally supporting Luanda in Angola — along with its standing on the record has steadily increased from the previous 7 decades.
“Hong Kong has continued for more pricey for expatriates. Within the last couple of decades, the HK dollar has appreciated against most major currencies, due to its peg to the US dollar, that has forced up the cost of products and services relative to people in places whose currencies have weakened from the greenback,” explained Lee Quane, ECA International’s regional director for Asia, said in a release accompanying the position.
Stable costs in Japan combined with a weaker yen against major currencies also accounted for why Hong Kong overtook Tokyo this season as the priciest city in Asia.
“This implies that for many businesses, the price of maintaining their assignees’ buying power while submitted here has dropped and global assignees based in Japan may see their cost of living allowances decrease,” Quane mentioned in the release.
ECA gathered the outcomes by collecting cost data across 464 cities, comparing a pre-determined basket of products and services which are generally bought by expatriates internationally.
This basket also contains groceries, meals, leisure activities and expenditure on clothes and overall services. It excludes certain expenses like rent, utilities, vehicle purchases and lodging fees which are usually supplied by businesses when their workers relocate overseas.
The majority of the cities included in ECA’s top 25 most expensive places in Asia Pacific this season are concentrated in East Asia — together with Seoul since the third pricey city, Shanghai since the fourth and Macau in the 11th place.
More Chinese cities have been added in this year’s survey to symbolize the growing presence of multinational businesses in the nation, Quane told CNBC.
City-state Singapore, that rivals Hong Kong as a financial hub, came in at the 10th place for the Asia-Pacific area, and even dropped by 6 locations internationally to the 24th priciest city on earth. Even though the Lion City frequently tops cost of living positions, Quane told CNBC that his strategy differed from different polls.
Angola’s capital, Luanda, topped this year’s record as the most expensive city on earth. Weak infrastructure abilities and high oil-fueled demand combined shoved the South African town to the peak of the record. It is a regular on very top of cost of living listings.
Money fluctuations in the poorer pound, as a consequence of past year’s Brexit vote, forced Central London from ECA’s top 100 most expensive cities to 132, which makes it more economical for expatriates to reside in as compared to Paris, Bangkok and Rio de Janeiro.
The bi-annual cost of living survey is conducted by ECA to quantify how much is necessary for organizations to set abroad living allowances for companies to make sure that workers can keep a comparable standard of living while working overseas.