Some companies are known to have raised monthly housing allowances for expatriates by as much as 20% in response to the soaring prime apartment rentals. A report in Singapore claimed that prime rentals had jumped 36% over the same time last year.

In Hong Kong the situation is worse. Rents for upscale apartments in Hong Kong have reached a phenomenal height. Houses on the pristine district on the Peak and the south side of the island are reportedly collecting top monthly rent of around HK$500,000 which is around $97,000 in Singapore dollar.

Office space at the prime International Finance Centre 2 now commands more than HK$100 per square foot a month.

In terms of cost of living for expatriates, both the cities have quite high world ranking with Hong Kong occupying the 81st spot and Singapore 135th. In Asia, Hong Kong is ranked the 5th most expensive Asian cities for expatriates while Singapore 9th.

The Cost of living ranking in Asia is as following: Seoul, Tokyo, Yokohama, kobe, Hong Kong, Taipei, Beijing, Shanghai, Singapore and Jakarta.
– 11 August 2007

Edited by Sam Gian
(Singapore's Independent Real Estate Trainer & Consultant)