Why Singapore Ranked Fourth Most Expensive for Expats but 28th for Locals in 2025

One city, two very different household budgets

Singapore ranked fourth most expensive for expatriates but 28th for locals in a 2025 study of 45 cities by researchers from the Lee Kuan Yew School of Public Policy. Behind that gap are three expenses that can reshape a household budget: housing, transport and schooling.

New York, Zurich and Los Angeles were the only cities ahead of Singapore for expatriate costs. The study covered cities across Asia, Australasia, Europe and North America. Within Asia, Singapore was the most expensive for both expatriates and locals, followed by Hong Kong.

A foreign professional renting a private condominium, driving a car and paying international school fees faces a different set of bills from a Singaporean family living in public housing, using buses and trains, and sending children to national schools. Both households live in the same city, but they buy different services and have different access to subsidies.

Singapore's housing ranking captures the divide: sixth most expensive for expatriates, compared with 23rd for locals. The researchers also found that the ten most expensive cities had the highest housing prices, showing how heavily property costs shape spending in major global centres.

Global inflation and exchange rate movements tend to affect expatriate costs more directly. Local household costs are influenced more by domestic policies, subsidies and public services. Currency changes can also alter how much spending power an overseas salary or savings account provides in Singapore.

The result helps explain why a finance executive relocating from Europe can encounter costs resembling New York or Zurich, while a local family faces a substantially different budget. Singapore's headline reputation for expensive living contains several distinct experiences.

How the rankings changed from 2021 to 2025

Singapore moved upward in both rankings during the study's five years. Its expatriate position rose from sixth in 2021 to fourth in 2025, while its local position moved from 33rd to 28th.

• 2021: Singapore ranked sixth for expatriates and 33rd for locals.
• 2022: It ranked fifth for expatriates and 30th for locals.
• 2023: It remained fifth for expatriates and reached 29th for locals.
• 2024: It ranked fifth for expatriates and 28th for locals.
• 2025: It rose to fourth for expatriates and remained 28th for locals.

Most of the cities with the highest expatriate costs were in North America and Western Europe. Singapore and Hong Kong were the main Asian exceptions. Singapore's position at the top of the Asian rankings for both groups also shows that a lower global ranking for locals can still mean relatively high costs within the region.

Other global cost surveys frequently place Singapore at or near the top, citing limited land, expensive car ownership and strong demand for centrally located homes. Consumer comparisons commonly group it with Zurich, Geneva, New York, Hong Kong, London and Los Angeles.

Housing creates the largest divide

Expatriate households generally rent on the open market, often choosing private condominiums with amenities. Citizens and many permanent residents can buy or rent Housing and Development Board flats, subject to eligibility. Subsidised public housing and more moderate price growth over long periods give many local households a different starting point.

A rent increase can reach an expatriate household as soon as its lease is renewed. A local household that bought its home earlier may be more sheltered by its purchase price or access to public housing.

Current price trackers put a one bedroom apartment in the city centre at about S$4,032 a month, compared with S$2,985 outside the centre. Using those figures, living outside the centre reduces the monthly rent by S$1,047, or S$12,564 over a year.

Guides for newcomers give different rental ranges: roughly S$2,500 to S$4,000 for a central apartment with one bedroom, depending on location and building age, and S$1,500 to S$2,500 farther out. In core business districts, some expatriates report paying S$4,000 to S$6,000 for a similar apartment with newer amenities, particularly in premium towers.

Those figures reflect different properties and locations. A household's actual housing bill depends on how much space it needs, the building it chooses and how close it wants to be to the business district.

Rents eased after a sharp rise

Singapore's rental surge followed pandemic construction delays, the rapid return of foreign workers and strong demand from local households. Over roughly three years, the rental index increased by about 60 percent.

Market figures cited in a rental market report showed the index subsequently declining by about 4 percent across four quarters, followed by a small increase in the latest quarter. A guide focused on expatriate rentals estimated that prices cooled by about 5 to 10 percent from their peaks during 2024 and into 2025, with greater flexibility for expensive central properties as vacancies increased.

Tenants gained more room to negotiate, although rents remained elevated after the increases since 2020. Landlords were still dealing with higher property taxes and borrowing costs, making them reluctant to accept deep reductions.

New housing supply and the pace of arrivals will help determine what happens next. More homes than prospective tenants would restrain rents. Faster hiring in finance and technology could renew competition for central apartments, while weaker demand from people in higher paid jobs could leave tenants with negotiating power for longer.

Rental choices extend beyond private condominiums

Foreigners can rent HDB flats if they meet eligibility requirements and neighbourhood quotas allow it. Many HDB neighbourhoods are close to train stations and markets, offering an alternative to private condominiums. Areas outside the central business districts but connected to the MRT network can reduce monthly rent by hundreds or even thousands of dollars.

Shared living residences offer another option, with communal kitchens and lounges, shorter leases and more standardised costs. Their appeal depends on whether a tenant values flexibility more than having an entire apartment.

Typical private leases last one or two years and require a security deposit equivalent to one or two months of rent. Longer leases may include a diplomatic clause, allowing early termination if a work assignment ends. Tenants should ask for that provision rather than assume it is included.

Renters also need to budget for stamp duty on the lease and check their obligations for minor repairs. Photographs documenting the property's condition at the start of the tenancy can help prevent disputes when the lease ends.

PropertyGuru and 99.co carry most listings. Many expatriates use an agent familiar with neighbourhood trade offs, and newcomers are advised to work with licensed agents. Comparing the commute, nearby services and total rental terms gives a fuller picture than the advertised monthly price alone.

Public transport and private cars have very different costs

Singapore's MRT and bus network provides broad coverage across the island. Fares are typically about S$1 to S$3 a journey, while crowd sourced price tracking places a monthly public transport pass at around S$120.

Ride hailing services and taxis are widely available. For centrally located households, walking, public transport and occasional paid rides can keep transport spending modest compared with owning a car.

Car ownership brings a much larger bill because of the Certificate of Entitlement system, known as COE. Buyers must obtain a certificate through an auction before registering a vehicle. The certificate lasts for a set period, and its cost comes on top of the car's price and taxes.

COE prices rise or fall with demand and the available supply of certificates. The system limits the vehicle population, and strong demand can push the total purchase cost far beyond prices familiar to drivers in other countries. Expatriates choosing a car face that full expense.

Petrol and parking add recurring costs. Numbeo's price basket puts petrol at about S$10.67 a gallon, alongside its S$120 benchmark for a monthly public transport pass. Singapore's taxes are structured to discourage private car use, giving households a strong financial reason to consider buses and trains first.

A car may meet a particular family need, but many expatriates find the reach and speed of public transport sufficient. Living near work or an MRT station can therefore change both the housing calculation and the transport budget.

School fees can compete with rent

International education is another major expense for expatriate families. Numbeo's benchmark for an international primary school in Singapore is approximately S$37,959 a year. Private insurers and relocation guides give a broader range, from several thousand US dollars to around US$40,000 annually, depending on the school and grade.

Application charges, building funds, school buses and extracurricular programmes can add thousands more. Families comparing schools need a complete fee schedule, rather than tuition alone, before deciding how much remains for housing and other expenses.

Singapore's public schools offer a high standard of education, with subsidised fees for citizens and permanent residents. Foreign students face higher monthly fees and limited places. Access and charges vary by residency status.

Many expatriate families choose international schools so children can continue a familiar curriculum when moving between countries. That continuity comes at a substantial price and can determine where a family lives and how much space it can afford.

Employer education allowances, which remain common in some industries, can change the calculation. Comparing several campuses and checking what an employer will cover helps families understand the full commitment before signing a housing lease.

Food and everyday spending offer more flexibility

Hawker centres provide meals for roughly S$5 to S$10, giving households a relatively inexpensive way to eat out. A meal for two at a restaurant in the middle price range can cost about S$100.

A cappuccino averages a little over S$6, while a beer in a neighbourhood pub costs around S$10. High alcohol taxes help explain why an evening out can feel expensive compared with a meal at a hawker stall.

Grocery costs reflect Singapore's reliance on imported food. Recent price baskets put a dozen eggs at about S$4.18, a loaf of bread at S$2.75 and a gallon of milk at roughly S$15.

Utilities for a typical apartment usually range from S$150 to S$300 a month, depending on its size and household usage. Fast home internet costs around S$45 to S$50 monthly, while premium gym memberships can run from S$150 to S$200.

Mobile plans and home internet are relatively affordable by global standards. Supermarket promotions, hawker meals and online marketplaces for household items offer further ways to control spending without changing a family's home or school.

Why monthly budget estimates vary so widely

Budget guides estimate that a single expatriate might spend S$3,500 to S$6,000 a month, depending on housing. Crowd sourced indexes that include more premium choices put the figure above S$7,000.

A family of four may spend roughly S$6,000 to S$12,000 monthly. Some expatriate price indexes put the figure at about S$11,000 when their assumptions include a larger home. Housing size, schooling, commuting and leisure explain much of the spread.

Numbeo reports an average monthly net salary near S$5,984. Comparing that benchmark with the spending estimates shows why the details of a relocation package matter: two households with similar pay can have very different amounts left after rent and school fees.

Personal income taxes are presented in the September 5, 2025 account as ranging from zero to 22 percent for residents. It gives the rate for nonresidents as 15 percent or the applicable progressive rates, whichever produces the higher tax bill. Lower taxes help high earners retain more income and are among the reasons global companies remain comfortable using Singapore as a regional base.

Health insurance also needs a place in the budget. Foreign residents can face high medical expenses paid directly from their own funds without suitable coverage. Private insurance matched to a household's needs can reduce unexpected costs.

How Singapore compares with its neighbours

The InterNations Expat Insider 2025 study places Vietnam at the most affordable end of its country comparison. Thailand, Indonesia, the Philippines and Malaysia also receive strong ratings for personal finances, while Singapore sits among the least affordable destinations for expatriates.

Some professionals seeking a regional base therefore consider Kuala Lumpur or Bangkok for lower costs. Others accept Singapore's higher bills in return for its infrastructure, safety and career opportunities.

Singapore's domestic policies continue to shape the difference between local and expatriate budgets. Public housing, national schools and public transport give many residents access to less expensive arrangements, while private rentals, international education and cars expose households to much larger bills.

Global conditions still reach into daily spending. Exchange rates can quickly change purchasing power, and inflation in trading partners affects imported food and household goods. By September 2025, rental pressures appeared more manageable than during the acute shortage of 2022 and 2023, as new supply arrived and vacancies increased.

Market expectations pointed to limited scope for deep rent cuts without a substantial increase in available homes. Employment growth, particularly demand from higher paid professionals renting more expensive condominiums, remained central to the outlook. No date was given for a further rental turning point.

The most practical savings remain concentrated in a few decisions: choosing a home beyond prime central districts, using public transport, checking school charges and employer allowances, and budgeting for insurance and rental obligations. Those choices explain why Singapore can be a premium global city without presenting every household with the same cost of living.

What to Know

• Singapore ranked fourth for expatriate costs and 28th for local costs among 45 cities in the 2025 study.
• New York, Zurich and Los Angeles ranked above Singapore for expatriates. Singapore led Asia for both groups, followed by Hong Kong.
• Housing ranked sixth for expatriates and 23rd for locals, reflecting different housing arrangements and access to public support.
• Rents rose about 60 percent over roughly three years before a decline of around 4 percent across four quarters and a small subsequent increase.
• Private cars carry COE costs, taxes, petrol and parking expenses. A monthly public transport pass is about S$120.
• International primary school fees have a benchmark near S$37,959 annually, before additional charges.
• Housing, school selection, transport and employer support account for much of the variation in expatriate budgets.