Hong Kong is 9th most expensive location globally for expats

In Asia, it's now the third priciest.

Hong Kong is the world’s 9th most expensive location for expatriates according to findings from the latest Cost of Living survey by ECA International.

According to a release from ECA International, Hong Kong is up 17 places from last year’s 26th position globally. From a regional perspective, it has become the 3rd most expensive city for expatriates in the Asia Pacific region.

To ensure that an employee’s spending power is maintained when they are sent on international assignment, a cost of living allowance is often provided as part of the pay package. This allowance will be affected by differences in inflation levels as well as exchange rate movements between that employee’s home and host country.

“Hong Kong’s rise up the rankings is largely due to the relative strength of its currency in the past 12 months. It has appreciated against most major currencies owing to its peg to the US dollar, which has pushed up prices of goods and services compared to those in locations whose currencies have weakened against the greenback.

Here's more from ECA International:

While this is good news for holidaymaking Hong Kongers, it means that companies who provide cost of living allowances to assignees will likely need to increase them in order to protect assignee purchasing power,” said Lee Quane, Regional Director – Asia, ECA International.

ECA international has been conducting research into cost of living for more than 40 years. It carries out two main surveys per year to help companies calculate cost of living allowances so that their employees' spending power is not compromised while on international assignment.

The surveys compare a basket of like-for-like consumer goods and services commonly purchased by assignees in over 450 locations worldwide. Certain living costs, such as accommodation rental, utilities, car purchases and school fees are usually covered by separate allowances. Data for these costs are collected separately and are not included in ECA’s cost of living basket.