Hong Kong Is the Most Expensive City in the World for Expats: Study

According to Mercer, Hong Kong ranks first in the 2022 Cost of Living for Expat Employees, followed by Zurich and Geneva. (Isaac Lawrence/AFP via Getty Images）

Hong Kong is the most expensive city in the world for expats, according to a recent study.

According to a survey by Mercer, a renowned asset management firm in the United States, Hong Kong ranks first in the 2022 Cost of Living for Expat Employees, followed by Zurich and Geneva. Three Asian cities—Singapore, Tokyo, and Beijing—made it into the top 10, ranking eighth, ninth, and tenth respectively. In its report, Mercer notes that the high rankings of many Asian cities are driven by inflation and strong currency policy.

The cost of living is one of the key factors a city attracts international hires, business, and investment. Competition among cities becomes more fierce, especially at a time when inflation is rapidly hitting most parts of the world.

Here are the top 10 cities where it is most expensive for international employees to live: 1. Hong Kong 2. Zurich (Switzerland) 3. Geneva (Switzerland) 4. Basel (Switzerland) 5. Bern (Switzerland) 6. Tel Aviv (Israel) 7. New York 8. Singapore 9. Tokyo 10. Beijing

The report shows global issues such as COVID-19, the ongoing war between Russia and Ukraine, fluctuations in the exchange rate, and widespread inflation are affecting expat employee wages and savings globally.

In the last 18 months, the number of professionals sent to Asia has declined.

Tracey Ma, Mercer’s director of regional mobility in the Asia Pacific, said developed countries rely heavily on overseas employees. Talent shortage can become a problem as the cost of living increases.

“The international dispatch model is evolving faster than ever,” Ma added that the rise of remote, flexible working models means companies must rethink the way they manage their global workforce to stay competitive and attractive in talent retention, while ensuring cost efficiency.

Yvonne Traber, partner and global director of mobile business at Mercer, said: “The volatility triggered by COVID-19 and the crisis in Ukraine has exacerbated the uncertainty of the global economy and politics.

This uncertainty, coupled with a sharp rise in inflation in most countries, has led expats to worry about their purchasing power and the stability of their socioeconomic status.”

Traber added that this type of dilemma also weakens the ability of companies to attract and retain top talent.

This study is based on data on the prices of 200 commercial goods and products, collected in more than 400 cities between September 2021 and March 2022, including housing, transportation, utilities, food, household goods, and entertainment.