Hong Kong maintains its throne as the city with the costliest accommodation for expatriates, despite a rare drop in rental costs.
Hong Kong ranked as the world's most expensive city for expat accommodation, according to a report by global research firm ECA International, marking the fourth consecutive year it retained the top spot.
This was despite a drop in housing costs with the monthly rent for an «unfurnished, mid-market, three-bedroom apartment in areas commonly inhabited by international executives» priced at $10,769, a 5.95 percent decrease from 2020’s $11,318.
Pandemic and Politics
According to ECA International, the coronavirus pandemic and political unrest were major drivers to the rental drop.
«The pandemic has had a serious effect on international business in general, but more specifically has severely limited the number of overseas workers moving to Hong Kong,» said the firm’s regional director for Asia Lee Quane.
«This, together with the ongoing impact of socio-political tensions on Hong Kong’s economy and an unemployment level at its highest rate in over 15 years, has resulted in a lower demand for high-end accommodation and therefore a drop in the average expatriate rent.»
Asia Leaders
Within the region, Tokyo ranked second for expat accommodation costs ($9,317) followed by Shanghai ($,222), Yokohama ($5,168), and Seoul ($5,107) to round out the top five.
The report also highlighted Taipei as a strong performer due to its management of the outbreak with an over 5 percent increase in expat accommodation costs to $4,101.
«Taiwan was one of the few locations in the APAC region to see significant rises in accommodation costs this year,» Quane said. «This growth was a knock-on effect of the nation’s success in mitigating the transmission of the Covid-19 virus, as well as repatriations of staff previously assigned to China and demand for talent in key industries in Taiwan.»
