By Yudith Ho and Chien Mi Wong
July 12 (Bloomberg) -- Singapore overtook Hong Kong as a
more expensive city for expatriates for the first time, driven
by a stronger currency and higher rents, according to Mercer’s
Worldwide Cost of Living Survey.
The island-nation was ranked the eighth-most expensive city
worldwide, rising from the 11th spot last year following a
“substantial increase” in housing costs, Mercer said in an e-
mailed statement today. Hong Kong dropped one level to ninth
place, the survey showed.
Singapore’s record economic growth last year helped the
city to become home to the world’s highest proportion of
millionaire households at 15.5 percent of the population,
according to a Boston Consulting Group report in May. Inflation
rose 4.5 percent in May, exceeding economists’ estimates, as
food and transportation costs climbed, supporting the central
bank’s decision to allow the currency to appreciate further.
“You have got high inflation and we’re talking generally
about consumer price pressures, rise in property prices, the
strong Singapore dollar and tight labor markets,” Vishnu
Varathan, an economist at Capital Economics Asia Pte. in
Singapore, said by telephone. “So it’s quite clear how
Singapore managed to edge out Hong Kong.”