Hong Kong, Singapore become most expensive expat cities in 2024
What's the story
Hong Kong and Singapore, two significant regional finance hubs, have been identified as the world's most expensive cities for expatriates in 2024.
This ranking comes from Mercer's 2024 Cost of Living report, which saw these Asian cities surpass Swiss destinations like Zurich, Geneva, Basel, and Bern for the second year running.
The high rental costs in both Hong Kong and Singapore were a key factor contributing to their top rankings.
Ranking changes
New York and London's rankings shift in 2024 report
New York fell to the seventh position on Mercer's list, while London climbed nine places from the previous year to secure the eighth spot.
The report attributes these shifts to rising housing costs and "volatile inflation trends" impacting expatriate workers' compensation packages.
According to Yvonne Traber, the global mobility leader at Mercer, cost-of-living challenges have greatly affected multinational organizations and their employees.
Cost impact
High living costs impact expatriate lifestyle and spending
Traber further elaborated that high living costs could compel expatriates to modify their lifestyle, cut back on discretionary spending, or even struggle to meet basic needs.
To alleviate these challenges, she suggested that employers could offer compensation packages that include housing allowances or subsidies or provide other support services.
This advice comes in light of the significant impact cost-of-living challenges have had on multinational organizations and their employees.
Other rankings
Other cities featured in Mercer's top 20 list
The report also spotlighted other cities in its top 20 list.
Seven US cities made the cut, including Los Angeles at 10th place, Honolulu at 12th place, and San Francisco at 13th place.
In the Pacific region, Sydney was ranked as the most expensive city at 58th place.
Toronto and Mumbai were named Canada's and India's most expensive cities respectively, ranking 92nd and 136th on the list.
Bottom rankings
Nigerian cities fall to bottom
The report concluded with Nigeria's Lagos (225th) and Abuja (226th) falling to the bottom of the table due to currency fluctuations.
Mercer's ranking of 226 cities was based on a comparative cost analysis of over 200 items and services.
These included housing, transport, food, clothing, and household goods.
This comprehensive analysis provides a detailed view into the cost of living for expatriates across various global destinations.