ingapore now the world’s most expensive city: Economist

Singapore now the world’s most expensive city: Economist

SINGAPORE — Singapore has topped the Economist Intelligence Unit (EIU) list of the world’s most expensive cities to live in, according to the 2014 list released yesterday (this morning, March 4, Singapore time).

1 HOUR 14 MIN AGO

SINGAPORE — Singapore has topped the Economist Intelligence Unit (EIU) list of the world’s most expensive cities to live in, according to the 2014 list released yesterday (this morning, March 4, Singapore time).

Singapore jumped five places from No 6 last year to top this year’s list after rising in the list in recent years. The city was ranked No 18 a decade ago.

The Republic’s strong currency, which has appreciated about 40 per cent over the past decade, combined with soaring utility bills and the high cost of car ownership contributed to Singapore’s rise in the list, according to the EIU. Singapore is also the most expensive place in the world to buy clothes.

Paris, Oslo, Zurich and Sydney also made the top five of the EIU list. Tokyo, the most expensive city to live in for 2013, fell to joint sixth place alongside Caracas, Geneva and Melbourne. At No 10 is Copenhagen.

“Improving sentiment in structurally expensive European cities combined with the continued rise of Asian hubs means that these two regions continue to supply most of the world’s most expensive cities,” said Mr Jon Copestake, the editor of the EIU report.

“But Asian cities also continue to make up many of the world’s cheapest, especially in the Indian subcontinent.”

Predominantly higher costs of groceries has been singled out as a reason for most Asian cities figuring highly in this year’s list, with Tokyo still at the top of the list for everyday food items.

 

Singapore named world’s most expensive city: Economist Intelligence Unit

Property Guru – 2 hours 50 minutes ago

Singapore is now ranked as the most expensive city in the world, according to new research published today by The Economist Intelligence Unit (EIU) in its Worldwide Cost of Living survey.

Price rises and a stronger currency mean that Singapore now has the “dubious” claim to the title of the world’s most expensive city, according to the EIU report that compares the cost of living between 131 cities worldwide using New York as a base city.

Over the last decade a 40 percent currency appreciation, coupled with solid price inflation, has consistently pushed Singapore up the ranking. The city also has some structurally expensive items that skew the overall cost of living upwards. For example, car costs have very high related certificate of entitlement fees attached to them, which makes Singapore significantly more expensive than any other location when it comes to running a car. As a result, transport costs in Singapore are almost three times higher than in New York.

“Singapore’s rise is partially attributable to the continued strength of the Singapore dollar, but the city has seen price rises too which have no doubt been compounded by a reliance on imports,” said Jon Copestake, Editor of the report which looks at over 400 individual prices.
As a city-state with very few natural resources to speak of, Singapore is reliant on other countries for energy and water supplies, making it the third most expensive destination for utility costs. The proliferation of expensive malls and boutiques on Orchard Road also make Singapore the priciest place in the world in which to buy clothes.

Singapore’s rise comes at the expense of Tokyo, traditionally the world’s most expensive city, which has seen a slide in the valuation of the Yen, despite a return to inflation. The Japanese capital fell to joint 6th most expensive.

As well as Singapore and Tokyo, currency appreciation has cemented the position of Sydney (5th) and Melbourne (6th) in a top ten that is dominated by European and Asian/Australasian cities. Hong Kong is the 5th priciest city in Asia and 13th in the world.

Mumbai in India offers the best value for money and is joined among the cheapest locations by South Asian cities such as New Delhi, Karachi in Pakistan and Kathmandu in Nepal. Economic instability relating to the civil war and the collapse of the Syrian pound has placed Damascus among the world’s cheapest cities, although local price inflation will have been impacted by supply issues.

A summary of the full report can be downloaded at: www.eiu.com/wcol2014

 

3 March 2014 Last updated at 23:19

Singapore named the world’s most expensive city

Singapore has topped 131 cities globally to become the world’s most expensive city to live in 2014, according to the Economist Intelligence Unit (EIU).

The city’s strong currency combined with the high cost of running a car and soaring utility bills contributed to Singapore topping the list.

It is also the most expensive place in the world to buy clothes.

Singapore replaces Tokyo, which topped the list in 2013.

Other cities making up the top five most expensive cities to live in are Paris, Oslo, Zurich and Sydney, with Tokyo falling to sixth place.

The EIU’s Worldwide Cost of Living Survey is a relocation tool that uses New York city as a base. It looks at more than 400 individual prices.

Soaring Asia

The top 10 cities this year have been dominated by Asian and Australasian cities as well as some in Europe.

“Improving sentiment in structurally expensive European cities combined with the continued rise of Asian hubs means that these two regions continue to supply most of the world’s most expensive cities,” said the editor of the report, Jon Copestake.

“But Asian cities also continue to make up many of the world’s cheapest, especially in the Indian subcontinent.”

Most Asian cities that top the list are there for predominantly higher costs of groceries. Tokyo is still at the top of the list for everyday food items.

Inexpensive India

However, not all Asian cities are tough on the wallet.

India’s major cities – including Mumbai and New Delhi – were found to be among the least expensive in the world.

Mumbai’s prices are kept low by large income inequality.

The low wages of many of the city’s workers keep spending low, and government subsidies have helped them stay that way.

Outside of the subcontinent, Damascus in Syria saw the largest drop, becoming the fourth cheapest city in the world as the country’s ongoing conflict has led to plummeting prices.

While the EIU’s survey takes into account the cost of living, other firms employ different research methods.

Mercer conducts research to determine the most expensive cities for expatriate living.

It found that in 2013, Luanda, Angola was the hardest on expatriate wallets due to the difficulty of finding adequate secure housing, and the high price of imported goods.

 

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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