SINGAPORE: New York has leapfrogged Hong Kong as the world’s most expensive city to live in as an expat, while skyrocketing rents saw Singapore crash into the top five, according to a new study.

Soaring inflation and rising accommodation costs were cited as reasons for New York topping ECA International’s cost of living rankings for 2023, while Geneva and London remained in third and fourth places.

Singapore climbed from 13th place last year to break into the top five for the first time.

That move bucks a general trend among Asian cities of slipping down the rankings, partly attributed to lower rates of inflation relative to other regions.

The South-East Asian financial hub’s rise “was due largely to major increases in accommodation costs,” said ECA International’s Regional Director for Asia, Lee Quane.

Increased demand for rental homes, partially driven by the earlier relaxation of Covid-19 restrictions compared with other key locations in the region, was not matched by corresponding increases in the supply of accommodation, according to the report.

The biggest riser of the year was Istanbul, which climbed 95 spots to 108th place, on the back of an 80% surge in prices driven by president Recep Tayyip Erdogan’s economic policies, said the report.ECA International analyses the cost of consumer goods and services, factoring in rental costs in areas typically inhabited by expats, to rank 207 cities in 120 countries and territories around the world.

 - Bloomberg