Singapore is often cited as one of the world’s most expensive cities to live in, but why Singapore is perfect for expats?
Rent will be the biggest expense for most expats in Singapore. Buying your own home can be more cost-effective, but you’ll need to factor in additional fees like government taxes and buyer’s stamp duty.
1. Food
Despite being dubbed the world’s most expensive city to live in, Singapore’s lifestyle offers plenty of value. It boasts a high standard of living, an extensive range of leisure and entertainment activities, contemporary infrastructure, and effective public transit systems. But a plethora of benefits comes with a price, and that’s why it’s vital to consider your budget before moving to the Lion City.
The Economist Intelligence Unit’s (EIU) Worldwide Cost of Living survey bases its rankings on the prices of more than 200 items and services, including grocery basket, transport, recreation and entertainment, and housing. But the survey does not take into account taxes and home prices, which can make or break a potential relocation package. In addition, it doesn’t include goods and services bought at local markets, bazaars, or online marketplaces.
While the overall cost of living in Singapore is high, groceries are among the cheapest. The average household spends only about 8.4% of its total spending on food, which is significantly less than what people in other countries pay for groceries. This is due to the fact that people in Singapore eat like locals, and instead of opting for Western-style dishes and expensive supermarket brands, prefer affordable meals at local food stalls and more than 100 hawker centres.
However, while groceries are inexpensive, rent is not. According to Numbeo, the average monthly rental price in Singapore is around S$3,000 per month for a common room in a Housing Development Board (HDB) flat in District 21. Electricity, gas, and water bills also tend to rise yearly. In 2024, for instance, they were up by about 11%. In addition, foreigners are required to pay a Additional Buyer’s Stamp Duty (ABSD) of up to 60% of the market value of a property, which can add up to a significant amount over time.
2. Transportation
While Singapore is known for being one of the best places to live in the world, it comes at a price. This is especially true for rental properties and education. In fact, it’s estimated that a four-year general course at a local university will cost you close to $80,000.
The average household spends the most on food, shelter, and transportation. As such, it’s no wonder that the high costs of these items make the country a tough place to live for many.
When it comes to transport, the country’s highly efficient public transit system is a major benefit. Wait times are short, ranging from 4-6 minutes off-peak to 2-3 minutes during rush hour. Plus, the sleek design of the newer stations has even featured in international productions like HBO’s Westworld and Netflix’s Little Women.
But, if you prefer to own a car, be prepared for the high price tag. A certificate of entitlement (COE) can run up to $75,000 for a sedan, which does not include the cost of fuel, road tax, and insurance.
Nonetheless, Singapore’s COE prices are still less than in the US and UK. But, as we mentioned earlier, it’s important to conduct thorough financial planning to ensure you’re living within your means.
It’s also worth noting that rent is less expensive in the suburbs compared to the city center. You’ll likely find a 3-room apartment in Queenstown (District 3) costs significantly more than a similar unit in Hougang (District 9). It’s worth remembering, then, that the further you move from the center of the city, the lower your cost will be. That said, though, it’s still a good idea to stay near a MRT station so you can get around quickly.
3. Entertainment
When it comes to entertainment, Singapore is not cheap. Purchasing luxury goods is expensive, and so is enjoying fine dining. The country is also considered to be the world’s most expensive city in which to buy a car and in which to buy property, according to research by consultancy EIU (Economist Intelligence Unit).
Rent prices in the city can be high, especially if you want to live in central districts. A room in a shared apartment could cost more than US$1,000 per month. If you’re moving from overseas, it’s a good idea to budget for this before accepting a job offer in the city.
Thankfully, the government provides subsidies for local Singaporeans and permanent residents to help them afford housing costs. However, the overall cost of living is still higher than that of many other countries.
You’ll find plenty of things to do and see in Singapore, from traditional cultural entertainment like Chinese opera and mahjong to international offerings in dance, music, and theater. The country is also home to a vibrant farmer’s market scene and several upscale shopping malls.
Health care is another major expense in the country. The quality of the healthcare system is top-notch, and permanent residents are eligible for government-backed health insurance. However, private healthcare is relatively expensive in the country. A basic medical checkup can cost around S$50.
In general, the more you spend on necessities, the less you’ll need to pay for things you can do without. However, when you’re budgeting for a move to Singapore, it’s important to think about other household expenses as well. This includes utilities, food, and transportation costs. Ultimately, financial planning is the best way to determine how far your paycheck can stretch.
4. Health Care
A key reason why Singapore is considered one of the world’s best places to live is that it has an exemplary public health system. The country ranks as the top Asian health care destination, according to the World Health Organization, and is known for its state-of-the-art medical technology, cost-effective solutions, and high success rates. The country also has a well-regulated health sector that adheres to strict government guidelines for excellence, transparency, and cleanliness.
In addition, the medical bills of Singaporeans are heavily subsidised by the state and a mandatory medical insurance plan, MediShield Life (with an option to upgrade to an advanced Integrated Shield Plan), is part of many employees’ compensation packages. As a result, Singapore has one of the lowest healthcare inflation rates in Asia.
Despite this, health-related expenditures remain costly for expats and foreigners. Fortunately, Singapore has numerous affordable options for food and clothing. Hawker centres, food courts and coffee shops are plentiful in the city, and most meals cost less than S$5 per person. For fresh produce, local wet markets offer lower prices than grocery stores.
However, a significant portion of the medical costs stem from lifestyle-related diseases. Therefore, a key to living within your budget in Singapore is practicing healthy habits and obtaining comprehensive insurance coverage. For instance, smoking is an important risk factor for heart disease and cancer. By limiting your exposure to secondhand smoke, you can reduce your risk by about a third. Similarly, eating a balanced diet and maintaining a good weight can help prevent diabetes and other chronic conditions. In fact, nearly half of all disease burdens in Singapore are attributable to modifiable risk factors such as unhealthy eating habits and lack of physical activity.
5. Education
The cost of living in Singapore is relatively high, especially for those paying a large portion of their salary in rent. However, removing rent from the equation, Singapore’s cost of living is on par with, or lower than, other major cities like New York or London.
Moreover, while the costs of goods and services in Singapore are rising, they are not as fast as inflation. For instance, food prices remained stable until the COVID-19 pandemic, when they began to rise dramatically. However, the price hikes have since leveled off to a more manageable pace.
Rent is a significant expense for those moving to Singapore, but the good news is that it can be mitigated by finding affordable housing options. Consider sharing a flat with roommates or looking into student halls or co-living spaces. In addition, you can also save on rental expenses by choosing to live in less-central areas of the city, where prices are typically cheaper.
Finally, students can take advantage of student discounts offered by a number of attractions and entertainment venues. They can also stay on budget by opting for second-hand goods and purchasing phone plans with sufficient data and call minutes.
Overall, while Singapore’s cost of living is above average, it is still well worth the experience. The country’s low hidden costs, excellent public transport system and a range of free activities make it an ideal location for anyone wanting to live in a top global city. In addition, it offers a wide variety of educational opportunities and is a great base from which to explore Asia. So, don’t let its pricey reputation scare you away – you’ll have plenty of time to recoup the initial investment once you start earning a decent salary!
