The Cost of Living: Asia-Pacific’s Most Expensive Cities in 2025
2025-04-10
Asia-Pacific is home to some of the world’s most expensive cities, with Hong Kong (116.1) and Singapore (115.8) topping the world and region’s cost of living rankings as of April 2025, according to Xpatulator. These global hubs are followed by Sydney, Shanghai, and Wellington, reflecting high housing costs, limited land supply, and strong demand for services. Australia dominates the top 20 with six cities, while New Zealand, China, and a few outliers like Ashgabat and Honiara also feature due to local economic conditions and import dependencies. For expatriates and migrants, these rankings highlight the financial pressures of relocating to the region’s most sought-after urban centres, where the cost of prestige often rivals or exceeds that of New York.
Asia-Pacific, a region defined by rapid economic growth, diverse governance models, and an expanding urban middle class, is also home to some of the most expensive cities on the planet. According to the latest data from Xpatulator's quarterly global survey—benchmarking 780 locations worldwide—Hong Kong retains its perennial position at the summit of the cost of living index in Asia-Pacific with a score of 116.1, just edging out Singapore at 115.8. These cities, alongside a swathe of Australian, Chinese, and New Zealand metropolises, dominate the region’s top 20 list as of 1 April 2025.
The index, using New York City as the reference point (index of 100), serves as a sobering reminder of the cost associated with life in globalised, service-driven cities. For expatriates, professionals, and globally mobile talent, this ranking offers more than academic curiosity—it fundamentally shapes decisions on relocation, lifestyle expectations, and compensation negotiations.
The Frontrunners: Hong Kong and Singapore
Hong Kong and Singapore are separated by a mere 0.3 index points, yet they share striking similarities in the structural factors driving up costs. Both are city-states with acute land scarcity and immense global financial sector footprints. Housing, unsurprisingly, is the largest contributor to their high index scores. With land use tightly regulated and urban density extremely high, prices for apartments—whether owned or rented—remain eye-wateringly steep.
In Singapore, a limited supply of private housing and high car ownership costs (thanks to its Certificate of Entitlement system) have long underpinned the city’s expense. Hong Kong’s woes are compounded by geopolitical tensions and the flight of capital from mainland China, which has paradoxically buoyed luxury real estate prices rather than deflated them.
While these cities offer unmatched connectivity, safety, and public services, the price tag for such advantages is considerable. International assignees, unless generously remunerated, are likely to find discretionary spending constrained by the sheer baseline cost of living.
The Australian Invasion
Australia, despite its geographic remoteness, punches above its weight in the 2025 ranking. It claims six of the top 20 positions: Sydney (3rd, 95.9), Canberra (8th, 89.3), Perth (10th, 87.9), Melbourne (11th, 87.6), Brisbane (15th, 85.1), and Adelaide (20th, 83.3). These high rankings reflect a combination of factors, including a relatively strong Australian dollar, high wages, and a robust social infrastructure that drives demand and price levels.
Sydney, long the darling of the global lifestyle set, is the country’s most expensive city due to high housing costs, expensive imported goods, and soaring service charges in everything from childcare to dining. Canberra’s elevated index, despite its modest global profile, stems largely from its status as the political capital, where public sector salaries and government-driven demand inflate prices.
For newcomers, especially those not on expatriate packages, Australia offers a high quality of life—but at a price. While healthcare and education are often of superior quality, everyday expenses—from groceries to internet—can quickly erode disposable income.
New Zealand’s Presence: High Costs, Low Scale
New Zealand’s three entries—Wellington (5th, 92.2), Auckland (6th, 90.5), and Christchurch (18th, 84.3)—reveal that even nations with comparatively small populations are not immune from soaring costs. The main culprits here are housing shortages, high import reliance, and logistical costs associated with geographic isolation.
Wellington and Auckland, in particular, have seen years of underbuilding collide with population growth and wage inflation. Renters find themselves squeezed in competitive markets, and basic services remain costly. The index numbers are a testament to the high demand for limited urban space in cities prized for their livability.
China’s Contrasting Urban Landscape
China places four cities in the top 20: Shanghai (4th, 94.6), Macao (9th, 88.6), Beijing (12th, 87.0), and Hong Kong (1st, 116.1). While Hong Kong and Macao are special administrative regions with unique legal and economic systems, the mainland’s two largest metropolises—Shanghai and Beijing—offer insight into the cost pressures in a nation balancing global ambition with domestic inequality.
In Shanghai and Beijing, expatriates often pay a premium for international schooling, housing in expat-friendly compounds, and imported goods. These costs are layered on top of the rising aspirations of a burgeoning urban middle class that drives up domestic demand. Macao’s inclusion is driven by its reliance on tourism and luxury sectors, which inflate prices disproportionately relative to income.
The Outliers: From Pyongyang to Honiara
Some entries might surprise. Ashgabat (7th, 89.9) in Turkmenistan owes its high ranking not to organic economic activity but to a command economy and skewed exchange rates that create pricing distortions for expatriates. Similarly, Pyongyang (13th, 86.3) appears due to the limited availability of goods and a dual pricing system that charges foreigners exorbitant rates.
Meanwhile, Honiara (16th, 84.4) and Hagatna, Guam (17th, 84.4), underscore the cost burden in isolated island economies. Heavy reliance on imported goods, limited domestic production, and costly logistics all conspire to make daily life unexpectedly expensive, despite relatively modest wage levels.
The Implications for Mobility and Migration
These cost of living rankings are not just academic. For multinationals, NGOs, and international schools, they directly inform compensation structures, hardship allowances, and benefits packages. A senior executive relocating to Singapore or Hong Kong may demand housing subsidies that would be unnecessary in Taipei or Seoul.
For individual migrants, especially those without the cushion of corporate support, these cities represent a financial crucible. In the absence of substantial savings or in-demand skills, the cost pressures can quickly outweigh the career and lifestyle opportunities on offer.
Crucially, these figures also challenge simplistic narratives about "cheap Asia." Gone are the days when the region could be universally considered affordable. Today’s Asia-Pacific is a bifurcated landscape—where world-class amenities and global city status come at a premium, and where remote, insular locations often exact a hidden cost for their isolation.
In 2025, as global mobility resumes its pre-pandemic momentum, understanding the true cost of Asia-Pacific's urban allure has never been more essential. For those seeking opportunity, the price of prestige demands close attention—not just to salaries, but to what they will actually buy.
Use Xpatulator’s Cost of Living Calculators and Tools for informed decision-making about the cost of living and the salary / allowance / assignment package required to maintain the current standard of living.