What does it really cost to live in Singapore – the world’s ‘most expensive’ city?
- Apr 1, 2024
- 2 min read
According to the Cost of Living survey by the Economist Intelligence Unit (EIU), Singapore is the world’s most expensive city.
This comes as no surprise: when thinking of Singapore, images of opulence and high costs come to mind, epitomized by extravagant mansions, the iconic Marina Bay Sands infinity pool, and luxury cars.
However, the true cost of living in Singapore varies significantly depending on each individual's lifestyle choices.
Cost of Living Measurement
The EIU survey excludes taxes, home prices, rent, and local market goods, focusing instead on over 200 products and services. Major components include shopping baskets (25%), transport (19.5%), and recreation and entertainment (18%). These factors contribute to a high ranking, especially for luxury items like cars and green fees on golf courses.
Rent
Rent in Singapore fluctuates based on proximity to the city center, property age, and amenities. Central areas like Tanglin and Marina Bay can cost $3,718 to $11,155 per month. More affordable options are available in public housing (HDB) in city fringe districts, offering good facilities and transport links. Mid-tier neighborhoods like Paya Lebar and Redhill offer cheaper rents compared to London or New York equivalents.
Taxes
Singapore offers favorable tax rates, with a maximum individual income tax rate of 24%, much lower than in the UK or the US. Additionally, income earned outside of Singapore is not taxed, making it an attractive location for high net-worth individuals and expatriates.
Public and Private Transport
Public transport in Singapore is extensive and affordable, with MRT fares averaging $1.49 per trip. In contrast, owning a car is expensive due to the Certificate of Entitlement (COE) costing about $75,000, plus additional expenses. However, the efficiency of the public transport system negates the necessity for car ownership.
Food
Eating out in Singapore ranges from affordable hawker centers ($2.23 to $7.42 per meal) to high-end restaurants. Groceries cost $171 to $298 per month, and wet markets offer cheaper produce. Overall, food in Singapore is cheaper than in New York or London.
Healthcare
Singapore's healthcare system is robust, with transparent pricing. While public hospital charges are higher for foreigners, employer-provided health insurance is common. Private insurance starts at $370 per year, and basic policies for hospital coverage cost around $1,500 annually.
Education
Educational options include international schools with annual tuition ranging from $12,645 to $37,191, comparable to costs in New York and London. Public schools offer affordable fees and a strong bilingual foundation. Early childhood education is mostly private, costing $520 to $2,231 per month.
In summary, while living in Singapore can be expensive, particularly for luxuries and private transport, many affordable options exist for housing, public transport, food, healthcare, and education, especially when adapting to local norms.
Article by Singapore Global Network. Read more here or in the PDF below.
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