Even though Singapore is now ranked the 5th most expensive Asian city to rent a three-bedroom apartment, it remains an attractive location for moving expatriates into the region.

Although apartment rental costs for Singapore are rising, the cost of accommodating an expatriate is generally cheaper than other cities such as Hong Kong and Tokyo in the Asian region. Furthermore, Singapore’s quality of living is equal if not higher than the mentioned cities.

Lee Quane, general manager, ECA International Hong Kong says, “If the company is faced with a choice of either expatriate operations in Singapore or Hong Kong and the cost of employing an expatriate staff was the major factor, Singapore would win.”

He adds, “Because Singapore has the lower cost of employing expatriate staff and also the higher standard of living remains relatively cheap as compared to other locations with similar quality of living in the region.”

Yet, the recent survey conducted by ECA International found that Singapore is also the 9th most expensive location globally. The average cost for three-bedroom apartment in a popular expatriate area in Singapore is US$4,460 (S$6,032) per month which is 33% higher than in 2006. This is the highest year to year percentage increases in Asia.

Quane explains the high rental prices can be attributed to companies expanding their operations in Singapore together with government initiatives to attract skilled workers from overseas and en bloc purchases by developers.

The survey also revealed that six of the top 10 most expensive locations in the world are in Asia, with Hong Kong (1st), Tokyo (4th), Mumbai (6th) Seoul (7th), Singapore (9th) and Ho Chi Minh City (10th). Moscow, New York, London and Caracas make up the remaining most expensive cities globally to rent a three-bedroom apartment.