Singapore Ranks Fourth as Costliest City for Expats in 2025

Singapore has been identified as the fourth most expensive city globally for expatriates, according to a recent study conducted by researchers from the Lee Kuan Yew School of Public Policy. In stark contrast, the city ranks 28th for local residents. The study assessed the living costs across 45 cities in Asia, Australasia, Europe, and North America, revealing significant disparities between the financial burdens faced by expatriates and locals.

One of the key findings of the study is that expatriate living expenses are more significantly influenced by global inflation trends and fluctuations in currency exchange rates. For expatriates, the primary factors driving up costs include housing prices, transportation expenses, and international school fees. In 2025, Singapore placed fourth for expatriate living costs, trailing behind New York, Zurich, and Los Angeles.

Cost Comparisons Reveal Distinct Challenges

While Singapore stands as the most expensive city for both expatriates and locals in Asia, its ranking for local residents reveals a more manageable cost of living in comparison. The Chinese city of Hong Kong ranked 10th for expatriates and 31st for locals. The study analyzed cost rankings from 2021 to 2025, showing that Singapore was the sixth most expensive city for expatriates in 2021 and fifth from 2022 to 2024. For locals, the city fluctuated from 33rd in 2021 to a stable 28th position in 2024 and 2025.

Researchers noted that in cities with higher rankings, such as Zurich, Singapore, and Hong Kong, factors extending beyond regional economic development contribute to the elevated living costs. These cities consistently exhibit the highest housing prices. In Singapore, housing ranks as the sixth most expensive for expatriates among the 45 cities, while locals find it more affordable, ranking 23rd. This discrepancy is largely attributed to expatriates’ reliance on the private rental and condominium market, unlike locals who often have access to subsidized or public housing options.

Transportation and Education Costs on the Rise

Transportation and education costs for expatriates in Singapore are also among the highest globally. The study highlights that car ownership incurs significant expenses due to the stringent Certificate of Entitlement system, which adds to the overall financial strain for expatriates.

In contrast, the least expensive cities for expatriates are primarily located in Southeast Asia. The findings indicate a troubling trend in developed regions, where the cost of living continues to escalate, making these cities increasingly unaffordable for both expatriates and locals alike. Researchers emphasize the need for awareness regarding these financial dynamics, particularly as they pertain to housing, education, and transportation costs in major urban centers.

As the economic landscape evolves, the implications of these findings will likely continue to resonate throughout the global expatriate community, influencing decisions related to relocation and lifestyle choices.