In figures unlikely to surprise readers, Singapore retains its top spot as the world's most expensive city, according to results from a research and publishing house.

New figures from the Economist Intelligence Unit show that Asia has the dubious honour of boasting five of the world’s most expensive cities, with Singapore ranked in first place, ahead of Hong Kong, with Switzerland’s Zurich in third.

The survey, using a WCOL Index (with New York at a base of 100), shows Singapore at 120, unchanged in 2017 from a year before, while Hong Kong is at 114, also unchanged, and Zurich is 113, down by one ranking from last year. Tokyo, at 110, is up seven places, while Osaka in Japan is up by nine, the survey showed. 

Seoul in South Korea is at 108, followed by Geneva at 107, then Paris at 107, New York at 100, and Denmark, also at 100. 

Interestingly, London – often grumbled over by its inhabitants as expensive – does not make it into the top 10 rankings. The UK capital fell by 18 points in the last 12 months.

Such data, while they must be carefully interpreted, can shed light on why wealth management firms have been shifting their booking centres and changing business models. The sheer cost of doing business in Singapore, for example, might explain why, despite Asia’s vibrant economy of recent years, several private banks such as at Societe Generale, Barclays, ABN AMRO and ANZ have been sold to local players. Banks have typically said they have not achieved critical mass to justify costs of doing business.

Singapore sizzles
“Despite topping the ranking, Singapore still offers relative value in some categories, especially compared with its regional peers. For categories such as personal care, household goods and domestic help Singapore remains significantly cheaper than its peers, although it remains the most expensive place in the world to buy and run a car, as well as the second-priciest destination in which to buy clothes,” the report said.

“In terms of food and drink the cost of living in Singapore is on a par with that of Shanghai in China. Seoul, Tokyo and Osaka present the three most expensive places in the world to buy staple goods. In Seoul, topping up a grocery basket is almost 50 per cent more expensive than in New York,” it continued. 

“Last year deflation and devaluations were a prominent factor in determining the cost of living, with many cities falling down the ranking owing to currency weakness or falling local prices. Both prices and a number of currencies rallied during 2016 and, although inflation in many cities has remained moderate, the impact is reflected in the average cost of living,” the EIU said.

“Taking an average of the indices for all cities surveyed using New York as base city, the global cost of living has risen to 74 per cent, up slightly from 73 per cent last year. This remains significantly lower than five years ago when the average cost of living index across 132 cities was at an all-time high of 93.5 per cent,” it continued.