What does it really cost to live in Singapore – the world’s ‘most expensive’ city?

When one mentions Singapore, familiar tropes come to mind. Over-the-top mansions in Crazy Rich Asians, the infinity pool at Marina Bay Sands and incredibly expensive cars.

With the Economist Intelligence Unit (EIU) Cost of Living survey declaring Singapore as the world’s most expensive city – tied with Zurich – no one was surprised.

But what does it really cost to live in Singapore?

We break down the components behind EIU’s cost of living survey and what it really costs to live in the world’s most expensive city.
 

Understanding how Cost of Living is measured in EIU’s survey

First, it’s important to understand the methodology behind how EIU calculated cost of living in its survey.

Designed to help Human Resources (HR) managers build compensation packages for relocated employees or ‘the international businessman’, the Worldwide Cost of Living survey does not include tax liabilities, home prices, or rent. It also doesn’t include goods from local markets, bazaars, and online marketplaces.

Instead, it weighs the prices of more than 200 products and services, some of which are exceptionally costly in tropical and land-scarce Singapore.

Its three biggest components are shopping basket (25%), transport (19.5%), and recreation and entertainment (18%), which includes green fees on golf courses, three-course dinners, prices of cars and their maintenance, and seasonal clothing.

This works against what life in Singapore looks like for the average resident. For example, it’s true that prices of car ownership is much higher in Singapore. However, with public transport easily accessible and much more affordable than other cities like London and New York, owning a car is not a necessity.

Green fees on golf courses are naturally much higher in a land-scarce city, and there is no need to account for seasonal clothing when it’s summer all year round.
 

It’s also important to consider the effects of exchange rates on calculations. EIU’s survey converts all prices to US dollars, making it sensitive to exchange rates. Thus, a relatively strong Singapore dollar has contributed to its higher ranking.

This, however, doesn’t raise the cost of living for those earning a Singapore income. On the contrary, it dampens imported inflation, lowering the local prices of foreign goods.
 

Comparing essentials

So how does Singapore really stack up against other metropolitan cities like London and New York?

We break down the costs of essentials in the Lion City and share how you can make the most of your money here by living as the locals do.
 

Rent

Like most cities, rent in Singapore is determined by proximity to the city centre and popular schools, the neighbourhood’s character and history, age of property, and access to transport. 

In recent years, there has been an upward trend in rent, triggered by shortages resulting from COVID-19 related construction delays, but this has since eased off to stable levels.

Private apartments in Singapore’s glamorous city centre neighbourhoods like Tanglin and Marina Bay, the equivalent of New York’s Upper East Side or Wall Street, can set you back from US$3,718 (S$5,509.62) to US$11,155 per month.
 

What sets Singapore apart is the abundance of public housing (HDB) blocks in city fringe districts. Those in Farrer Park, Bukit Merah, or Marine Parade are only 1 to 4 train stops or 5 to 15 minutes away from the city core. Many have a wealth of facilities such as eateries and clinics, as well as easy access to train stations, parks, and places of worship.

Apartments in these blocks are owned by citizens and permanent residents, but they offer an affordable rental option for foreigners, particularly those flying solo.

If public housing isn’t to your fancy, many also live on the fringes of the city center instead. This opens your rental options to condominiums, apartments, and even landed property.

Given Singapore’s size and expansive public transport network, you’ll find that you’ll still be able to reach the Central Business District (CBD) or town centre within 30 to 45 minutes for most of Singapore.  

Rent in Singapore’s mid-tier and city-fringe neighbourhoods, like Paya Lebar and Redhill, can be cheaper than their equivalents in Shepherd’s Bush in London and Brooklyn, New York.
 

Taxes 

Singapore has some of the world’s most favourable tax rates for individuals and businesses alike.

Like Singapore citizens, foreigners pay a progressive rate based on income, with a maximum ceiling of 24%. This personal income tax cap is almost half the UK’s (45%). In the US, income received by foreigners is typically subject to a standard flat rate tax of 30%.
 

Another beneficial tax condition here is that income earned from employment outside of Singapore is not taxable. This includes income received in a Singapore bank account. 

This contrasts with countries like the UK, where foreign income and capital gains are taxed if they are remitted to or used in the United Kingdom.

It’s also easy to file taxes in Singapore, where everything is digital and can be completed online. If your company is part of the auto-inclusion scheme, your taxes are automatically populated in IRAS’ system, and you’ll be able to file your taxes within 10 minutes!

For the latest information on taxes in Singapore, refer to the IRAS website.
 

Public transport

With an extensive bus and Mass Rapid Transit (MRT) network connecting all of Singapore, public transport is the mode of choice for many residents. MRT fares average US$1.49 per trip for adults. A monthly commute to work typically adds up to about US$60. 
 

With one of the cheapest public transport systems in the world, Singapore comes out on top by a significant margin when compared to New York and London. New York’s base fares for subway and buses start at US$2.90, while London’s peak-hour fares go up to a staggering US$6.06.

Wait times between trains are short, averaging 4 to 6 minutes off-peak and 2 to 3 minutes during rush hours.

Fun fact: the sleek and polished designs of our newer stations have been featured in international productions like HBO’s Westworld and the Netflix backed Korean drama, Little Women.
 

Private transport

Owning a car in Singapore is certainly pricier than in other countries – no argument about that! This is because the Certificate of Entitlement (COE) that every car owner must purchase averages a whopping US$75,000 for a sedan – and that excludes the costs of the car, road tax, fuel, and insurance. 

It’s a major contributing factor to Singapore being ranked the most expensive city in the EIU survey.

There’s a reason for it, though. Given Singapore’s small size, the volume of traffic on the road is carefully controlled to ensure we meet sustainability goals as well as avoid traffic gridlocks common to dense cities.

Paired with Singapore’s compact size, an efficient and affordable public transport infrastructure means there is no need to own a car. This is unlike larger cities where driving an hour or more to your destination is common.

If you really need a car from time to time, rental services like GetGo are an affordable alternative that starts at US$2.20/hour and go up to US$65.50/day. Longer-term rentals start at US$283/week for non-luxury models. 

Taxis and ride-hailing services like Grab, CDGzig or Gojek are readily available in Singapore for around US$11 to US$26 per trip, less if you opt for shared rides. They peak during rush hour and after the last train service, but if you’re out exploring the best of Singapore’s nightlife, you probably shouldn’t be driving anyway!
 

Frequent flyers will be pleased to know that rides to and from Changi Airport are significantly cheaper compared to many major cities. The airport is also easily accessed via the MRT.

If you use a mix of these options, say a daily commute on public transport, a three-hour rental every fortnight, ride-hailing twice a week and one round trip to the airport, you’ll average only about US$260 to US$300 per month.
 

Food

While how much you spend on meals varies widely based on your lifestyle, affordable meals may be found at food stalls and over a hundred hawker centres across Singapore. These meals average US$2.23 to US$7.42, and beverages like local coffee (kopi), can go for as low as US$0.45 to US$1.08.
 

For restaurant dining, the vast range in Singapore is a highlight for a nation of foodies. Casual dining costs about US$15 to US$26 per person, while world-class establishments like Odette will set you back by US$311 to US$446 per pax for a seven-course dinner, not including wine. 

Other top-rated options at enclaves like Dempsey Hill and Marina Bay will cost you US$72 to US$224 per pax. These prices are mostly aligned with the dining scenes of other Asian cities like Hong Kong and Shanghai.
 

For those who like to cook, monthly groceries average US$171 to US$298 for one, depending on your appetite for imported fruits, alcohol, red meat, and dairy.

Wet markets in Singapore, similar to farmer’s markets, offer produce at lower costs, especially if they’re regionally sourced or in season. Ask your neighbours and find out where and when to buy.
 

Healthcare

Singapore has a robust public healthcare infrastructure. Health practitioners and carers are heavily regulated, so your wellbeing is in good hands across a variety of fields, including traditional Chinese medicine.

While charges at public hospitals are higher for foreign patients (it’s subsidised for citizens), employer-provided health insurance is the norm for most expat packages. Make sure to prioritise this coverage in contract negotiations!

If not, private insurance is reasonably priced – starting from as low as US$370 per year. Expect to pay around US$1,500 annually for a basic policy covering hospitalisation and surgery.
 

Treatment costs in Singapore are generally transparent or available upon request, allowing you to plan accordingly. And the variety of public, private and international facilities means you won’t have much trouble finding healthcare tailored to your needs and budget.

Out-of-pocket costs in Singapore, sans insurance, remain significantly lower when compared to the cost of care in American cities:
 

Education

When it comes to your child's education in Singapore, you have a broad spectrum of high quality options in terms of culture, amenities, and programmes.

International schools offer globally-recognised curriculums, faculties and facilities, with annual tuition ranging from US$12,645 to US$37,191. These rates are on par with other expat centres like New York (US$13,700 to US$65,850) and London (US$9,665 to US$48,127).
 

If you’re looking to immerse your children in local culture while experiencing Singapore's renowned education system, public schools are an attractive choice. These schools offer more accessible fees and provide a strong bilingual foundation in English and mother tongue languages.

For early childhood education, government-run kindergartens are subject to availability for foreigners. More than likely, you’ll have to depend on private operators, who charge anywhere from US$520 up to US$2,231 per month.

Living in Singapore may not be cheap, but it also isn’t necessarily as expensive as other top-tier cities. There are fewer hidden costs, public transport is affordable, taxes are lower, and it’s also a great base from which to explore the rest of Asia. 
 

This article was first published by Singapore Global Network (SGN), an over 120,000-strong network of global professionals and friends. Join the network for free today to gain access to exclusive events, industry insights and member-exclusive perks.