Is Singapore Really The World’s Most Expensive City? | Johnny Africa

Within the world narrative of city dwelling, Singapore has etched its title as a shining instance of financial prowess, technological development, and cultural variety. Nonetheless, one label that persistently accompanies this city-state is that of being the world’s costliest metropolis.

I’m not going to dispute the truth that it’s an costly metropolis to reside in.

It’s.

However is it actually the costliest metropolis on the earth?

I’ve lived in Singapore for a while now and have cherished my time right here. I like the tropical climate, the meals, and its proximity to my favourite locations in SE Asia like Bali and Koh Phangan. Singapore is an costly nation little question, however to name it the costliest on the earth is a bit too generalized. As somebody that’s lived and traveled all around the world, the case could be made for and in opposition to this declare.

Some issues are very costly in Singapore whereas others are less expensive than comparable cities. You need to dig deeper into the query to actually perceive it which is strictly what I’ll do on this weblog submit!

Economist Intelligence Worldwide value of dwelling 2023

This weblog submit facilities across the latest research by the EIU on the costliest locations on the earth. It ranked Singapore as #1 amidst the standard suspects of cities like New York, Zurich, London, Sydney, and so forth.

The factors they use are standardized with the identical classes for every metropolis. Right here is the methodology they use to calculate these rankings:

It’s nothing fancy and so they use commonplace matters like lease, meals, drink, clothes, transportation, non-public faculties, home assist and different issues. Every thing is then transformed to US {Dollars} which can even seize FX danger into the research. Lastly, all the things is in comparison with a base metropolis, New York Metropolis, which has an index rating of 100.

The detailed report which you’ll be able to obtain on their web site solely offers the rating for every metropolis however not the detailed breakdown of every part that goes into the rating. Due to this fact, it’s inconceivable to truly evaluate what the research makes use of for issues like lease, automobile costs and so forth.

This weblog submit will go into why I don’t suppose Singapore is the costliest metropolis on the earth.

Value of Hire in Singapore

I’ve written in nice element about the price of dwelling in Singapore in earlier posts and to summarize, it’s not an inexpensive place. For starters, let’s take a look at lease as a result of that is simply the biggest driver of anybody’s month-to-month price range.

Nobody strikes to Singapore with the phantasm that it’s going to be an inexpensive place to reside. It merely isn’t. Rents submit COVID have spiraled upwards uncontrolled, alcohol is tremendous costly, eating places are dear, the value of education is insane, and the rest you’ll be able to consider might be additionally costly.

I spend one thing like $7.2k SGD (~$5.5k USD) a month for a 3 bed room condo within the metropolis middle (it’s actually extra of a 2.5 bed room condo). Whereas it does sit excessive up in a pleasant condominium constructing, the condo continues to be fairly small particularly for the value paid. You will discover rents for cheaper than this however it received’t be by lots if you wish to reside within the metropolis middle.

Compared, an condo in New York Metropolis within the middle of the town will simply value greater than an analogous unit in Singapore. A 1 bed room condo in Flatiron for instance will simply value $5,000 USD a month for one thing first rate. A 2 mattress 2 bathtub in a high neighborhood will go for $6,000+ and also you received’t even discover one thing that good.

Consuming Out In Singapore: A Story of Two Cities

This subsequent part is certainly probably the most variable of the price of dwelling classes in Singapore. Going out in Singapore is pricey. There isn’t any doubt about it. Singapore is a piece laborious play laborious metropolis and since folks make a lot cash on this nation, going out is reciprocated.

Relying in your way of life and pursuits, you can spend a lot much less or way more than what I spend. I do suppose while you first transfer to Singapore, this quantity will likely be a lot greater as you discover your environment and are enthusiastic about your new dwelling. As you compromise in, you received’t exit as a lot and this quantity will stabilize.

Like many different folks in Singapore, I completely eat out and barely prepare dinner something by myself. Whereas eating places are on the pricier aspect, consuming out at Singapore’s well-known hawker markets may be very low cost. A typical meal at a hawker stand will likely be someplace between $4 and $6.

A hen rice for instance begins at $3.50 for the standard portion measurement. I’m a giant man so I usually get double or triple the meat which makes the entire nearer to $6-8 which continues to be very okay for my part. The great thing about the hawker markets is that there’s a lot selection that you just’ll by no means get sick of it. You could possibly spend a lifetime consuming at Singapore’s hawker markets and nonetheless by no means eat all the things.

Eating places alternatively are a lot pricier. Anticipate to pay no less than double the value of hawker market for easy Asian meals however this nonetheless received’t break the financial institution. It’s largely while you dine out at fancier Western model eating places the place the invoice goes up. You possibly can count on to pay nearer to $35 for a easy cacio e pepe at a pleasant Italian restaurant which blows my thoughts since I had a lot of this whereas touring by Italy for nothing. Nevertheless it’s all about novelty and what you don’t have in Singapore!

On a typical weekday, I’ll spend about $6-15 on a lunch relying on whether or not I’m feeling a hawker market or not. For dinner, I’ll spend $10-$20 on both hawker meals or a take out kind of meal. On the weekends, dinners out can simply be $100 per particular person and if you happen to do that twice per week, it will get you to someplace between $500 – $2,000 a month.

From time to time, a eating expertise at Lavo for his or her bottomless champagne brunch will set you again $200 an individual which can blow out any month-to-month price range. Nonetheless, it’s completely price it and an incredible expertise!

Driving a Automotive in Singapore is the costliest on the earth

For those who don’t know, now you’ll know. Singapore is the costliest nation to personal a automobile and it’s not even shut. It’s one thing like 3-4x costlier to personal a automobile in Singapore than the subsequent costliest nation. I’ve written intimately how a lot a automobile prices in Singapore so I received’t get into the calculation right here however slightly summarize it.

How a lot to personal a automobile in Singapore?

To personal a automobile in Singapore, you’re paying two further taxes that you just in any other case wouldn’t pay in virtually some other nation on the earth. The primary known as COE (Certificates of Entitlement) that grants you the precise to even go and purchase a automobile (this isn’t a drivers license). This certificates is traded on the open market primarily based on provide and demand however usually hovers effectively over $100k SGD. Once more, that is only a piece of paper; you haven’t any automobile by any means but.

Along with the COE is the ARF (Further Registration Price). This can be a conventional tax on the worth of the automobile. The quantity varies however follows a tiered construction relying on the worth of the automobile. The minimal quantity for the ARF is 100%, and goes as much as 320% for automobile values over $80k SGD.

All in all, you’ll pay one thing like $200k for the most affordable and most elementary of automobiles in Singapore. Need a easy BMW 3 collection? You’re taking a look at one thing like $350k. Need a Porsche 911? Now you’re taking a look at $1.5m to $2m!

Do you want a automobile in Singapore?

For me the reply is a straight up no. There’s actually nothing you are able to do in Singapore that warrants needing a automobile.

I additionally discuss this in nice element in my do you want a automobile in Singapore submit. The reality of the matter is there’s nothing you’ll be able to actually do with a automobile in Singapore that warrants paying such ridiculous costs. The town is kind of small and is effectively related by public transport. Public transportation can also be very low cost with a single MRT trip costing round $2 SGD. Compared, a prepare trip within the metropolis of Zurich will likely be one thing like CHF4 ($6 SGD).

Taxis are additionally extraordinarily inexpensive for the salaries you may get. It’s not unusual that folks can take taxis to work each day and nonetheless pay lower than proudly owning a automobile. A taxi trip from the town middle to the airport will likely be about $20 SGD ($14 USD). An identical taxi trip in New York Metropolis could be $80-$100 USD and a taxi trip in Zurich will likely be CHF 60!

There’s additionally nowhere to actually drive your automobile after you have it. Singapore is a tiny metropolis that measures 30km by 20km. You’ve nowhere to aside from Malaysia however you’re higher off simply flying to locations like Kuala Lumpur or Penang.

Proudly owning a automobile is a standing image in Singapore

A automobile in Singapore is a standing image that everybody nonetheless strives to achieve to today. It is part of the unique 5 Cs of Singaporean society: Automotive, Apartment, Money, Profession, and Nation Membership. Singaporeans are wildly materialistic as with the remainder of Asia so this simply goes with the territory.

Fortunately, in additional trendy occasions, youthful of us have began to shun the 5Cs in favor of extra significant experiences however I believe it will take a very long time to vary. Singaporeans have been satisfied they want a automobile to reach the town despite the fact that there is no such thing as a level to driving. With the astronomical value of proudly owning a automobile, this ensures folks will work laborious for a really very long time for this objective.

If folks in Singapore simply realized they don’t want a automobile, then it’s probably folks will understand simply how way more rich they really are. Once more, I’m not advocating that nobody ought to drive a automobile in Singapore. When you have the cash and also you don’t want it for the rest, then go for it if you happen to should. Nonetheless, if you’re stretching your self skinny and severely decreasing your financial savings price to purchase a automobile as a result of society tells you to!

Automotive possession is the one cause why Singapore ranks so excessive

Whereas Singapore is a really costly metropolis to reside in, I don’t imagine it’s costlier than different massive cities on the earth.

The price of proudly owning a automobile is the one cause why it ranks the best. Whenever you conduct these value of dwelling analyses, you must hold your testing parameters the very same so in fact Singapore will stand out as the costliest. Nonetheless, as I’ve written above, nobody wants a automobile in Singapore so basing your evaluation off a luxurious merchandise is deceptive.

Due to this fact, I actually don’t suppose Singapore is the costliest metropolis in any respect.

Disposable earnings in Singapore is excessive

Singapore has as compared greater salaries and decrease taxes to its friends. The salaries no less than within the finance area are on par with New York however taxes are a lot decrease. What do you get ultimately? Quite a lot of disposable earnings.

Whereas Singapore is an costly metropolis to reside in, your disposable earnings makes up for it. For instance, somebody making $200k SGD a yr pays roughly 11% in earnings tax. It’s surprisingly a lot simpler to save cash right here than in different massive cities. With this financial savings, you’ll be able to both put it aside and contribute to retiring early like me, or you need to use it to spend at purchasing shops or journey.

I believe that numerous these research miss out on the truth that Singaporean earnings taxes are so low and what that may really imply for you.

Value of childcare is tremendous excessive

The financial savings on tax argument all goes out the door in case you have kids. As a foreigner, you should pay in your kids to be educated at non-public establishments. You aren’t aloud to attend native faculties as a non citizen or PR and due to this fact you solely choices are to pay for worldwide faculties.

These faculties can run upwards of $40-50k a yr per youngster. When you have two youngsters, that’s $80-$100k a yr submit tax! Any cash you save on tax will primarily go in direction of childcare. There’s a cause the taxes are low in any case!

In Conclusion

To summarize, I believe Singapore is an costly metropolis however it isn’t the costliest metropolis. I firmly imagine New York Metropolis is a costlier metropolis to reside in by all measures. Zurich can also be very costly however the low taxes and decrease lease costs make it extra inexpensive for my part.

The one cause Singapore ranks as the best on the EIU listing is due to the price of automobile possession. As I’ve already written, you don’t want a automobile in Singapore similar to you don’t want a automobile in New York or Zurich. In actual fact, I didn’t know a single particular person in New York that had a automobile nor did I do know anybody that cared to personal one.

Singapore is a distinct animal as a result of individuals are brainwashed into considering they want a automobile and thereby spending big parts of their earnings on one thing they don’t want. For those who take a automobile out of the equation, Singapore generally is a way more inexpensive place to reside than in New York or Zurich. The native meals and leisure choices imply you’ll be able to simply spend approach lower than an analogous expertise in different cities.

Better of all? For those who ever really feel like Singapore is simply too costly and/or simply want a break from the tiny island-nation, merely e-book a flight to one of many many alternative international locations surrounding Singapore. Whenever you arrive, you’ll be the king of kings as a result of it is going to be magnitudes cheaper than Singapore.