Bangkok As 29th Most Expensive Asian City: Cost Of Living

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COST OF LIVING

Bangkok as 29th most expensive Asian city

The Nation

BANGKOK: -- While Japan remains the most expensive Asian locations for international assignees, Bangkok and Chiang Mai are two cities of Thailand which are among the top 50 most expensive locations in the region.

In the annual survey by ECA International, a global consulting firm, Bangkok’s ranking moved sharply lower from the 17th in last year’s ranking to the 29th. Chiang Mai is also down one place to the 31st. In the global cities ranking, they are in the 163rd and 198th places, respectively.

Tokyo is still the most expensive location in the world and, within Asia, Japanese cities occupy the top four places.

In Asia, as China lures global business, Beijing has risen from 8th to 5th most expensive location in Asia while Shanghai has moved from 9th to 6th position. Singapore has fallen from 6th to 8th position in the rankings of the most expensive Asian locations for international assignees. Beijing’s move up the global rankings has been particularly dramatic. The city is now the world’s 20th most expensive city, up from 48th place in the same survey last year.

"The rate of increase in the prices of goods and services commonly purchased by assignees in China has gone up sharply in the past year," explained Lee Quane, regional director, Asia for ECA International. "In addition, the Renminbi has strengthened against major currencies. Together, these two factors have contributed to pushing up the cost of living in Chinese cities for international assignees significantly. For many companies the cost of posting employees to China has risen significantly compared to those posting employees to Singapore, Hong Kong and other locations in the region."

Despite falling in the Asia ranking, Singapore has continued its rise up the global ranking. The city is in 32nd position, up from last year’s 38th position and the previous year’s 69th place. It is higher in the ranking now than cities such as Berlin (47) and Paris (34).

"Prices of goods and services in our basket of items commonly bought by international assignees in Singapore have increased almost 6 per cent on average in the last twelve months, says Quane. "This is almost double the rate at which they rose a year ago. This together with the fact that over the same period the Singapore dollar has remained strong against other major currencies has contributed to Singapore's continued rise up the global ranking."

Living costs for assignees are affected by inflation, availability of goods and exchange rates, all of which can have a significant impact on assignee remuneration packages. To help multinational companies calculate assignment salaries, ECA carries out two Cost of Living Surveys per year, comparing a basket of consumer goods and services commonly purchased by assignees in 400 locations worldwide. Certain living costs such as accommodation, utilities, car purchase and school fees are not included in the survey. Such items can make a significant difference to expenses but are usually compensated for separately in expatriate packages.

In Asia as a whole, the price of goods and services commonly purchased by expatriates has risen by just over 6 per cent on average - slightly higher than the 4 per cent increases witnessed a year ago. While Japan has seen the smallest price increases in the region, Tokyo is still the most expensive location in Asia - and the world - for international assignees.

Globally, the rapid rise of Beijing and Shanghai have seen both cities overtake a number of locations in Australia, Brazil, Europe and the United States, including Rio de Janeiro (31st), Paris (34th) and Manhattan (40th).

Locations across mainland China have also climbed up the ranking and second-tier cities Shenzhen and Guangzhou now sit just behind Hong Kong at 10th and 11th place respectively in the Asian rankings and 55th and 56th in the global ranking. For the first time, both cities are now more expensive than Central London (at 62nd place), along with Beijing, Shanghai and Hong Kong.

Like Singapore, Hong Kong is now below Beijing and Shanghai in the ranking and has dropped from 7th to 9th position within Asia. However, the city has climbed back up the global ranking, following last year’s falls. Hong Kong is the 36th most costly location globally up from last year’s 47th position and almost back to the 34th place it held two years ago.

-- The Nation 2012-06-22

[Misterwhisper]

Always shaking my head over the relevance of such surveys, because they more often than not orient themselves on the living expenses of highly paid international expat executives in top firms, who live in grand mansions, are ferried around in luxury limousines, employ a bunch of domesic helpers, join the most exclusive health and sports and what not clubs, eat out at first-class establishments, send their kids to exclusive international schools and lodge in 5-star hotels during their weekend getaways.

Granted, Bangkok is no longer as affordable as it used to be, say, 15 years ago. But it's still possible to rent a very decent apartment or even small house for 10,000 to 15,000 Baht or thereabouts, keep expenses down by eating in "normal" local restaurants and not hitting the girlie bars every single night, and here you can even still afford to live without your own car, because taxis are plentiful and cheap.

Then again, during house searches I've been taken to downtown houses that were offered for "only" 150,000 Baht ($5,000) a month - and were almost unfurnished and from the inside looked dilapidated - with the respective owners arguing that "the location is unbeatable, hence the rent is justified". Maybe so, but certainly not within my budget. Come on, I mean who honestly could say they can afford back home to shell out 5 grand just in rent every month?

If you look at it from this perspective, then Bangkok surely is rather expensive.

[tfc]

For 5K US a month may as well just buy a new house.

[bankei]

I cannot understand Japan being the most expensive place. I live in Japan part of the year, in Osaka near the city and it is fairly cheap. Nearly as cheap as Thailand. You can eat out at a restaurante for 200B for example - for a hot cooked sit down meal too. Trains everywhere, no need for a car, accomdation is cheap, from $500 US per month in the city for a studio apartment etc.

Good place to retire.

Bankei

[jpinx]

These guys must be living like kings. Bangkok can still be cheap and cheerful if you don't look for "New York" standards.

[Genericnic]

As Misterwhisper noted, most of these surveys are "more often than not orient themselves on the living expenses of highly paid international expat executives in top firms, who live in grand mansions, are ferried around in luxury limousines, employ a bunch of domesic helpers, join the most exclusive health and sports and what not clubs, eat out at first-class establishments, send their kids to exclusive international schools and lodge in 5-star hotels during their weekend getaways." Most average Hi-So don't even live like that. (Though I'm sure they would like to).

Most of the "international assignees" I have met live more like tourists rather than trying to integrate into the local economy. As we all know, being a tourist costs more than living within the local economy. McDonalds is more expensive than good quality Thai food. Of course, most of the international assignees are essentially tourists with an expense account. They come on assignment for work and generally are not settling in for the long term. When their assignment ends after a year or however long it is, they move on. They really never put down roots with the intent of staying.

I too wonder why anyone thinks these surveys reflect anything other than the lives of people living in a bubble.

David

[PaullyW]

Another way to write the headline would be

"Bangkok right in the middle"

or

"Bangkok still one of the cheapest large global cities"

or

"Bangkok, as expensive as Kuala Lumpur but with arguably worse value for money spent"

http://www.eca-inter...1/#.T-WGXytii1c

Global list

Edited June 23, 2012 by PaullyW

[Soutpeel]

As Misterwhisper noted, most of these surveys are "more often than not orient themselves on the living expenses of highly paid international expat executives in top firms, who live in grand mansions, are ferried around in luxury limousines, employ a bunch of domesic helpers, join the most exclusive health and sports and what not clubs, eat out at first-class establishments, send their kids to exclusive international schools and lodge in 5-star hotels during their weekend getaways." Most average Hi-So don't even live like that. (Though I'm sure they would like to).

Most of the "international assignees" I have met live more like tourists rather than trying to integrate into the local economy. As we all know, being a tourist costs more than living within the local economy. McDonalds is more expensive than good quality Thai food. Of course, most of the international assignees are essentially tourists with an expense account. They come on assignment for work and generally are not settling in for the long term. When their assignment ends after a year or however long it is, they move on. They really never put down roots with the intent of staying.

I too wonder why anyone thinks these surveys reflect anything other than the lives of people living in a bubble.

David

As an "expat" and who knows lots of "expats" actually working here....you "analysis" is a work of fiction and basically you are talking through your bottom....

[Genericnic]

As an "expat" and who knows lots of "expats" actually working here....you "analysis" is a work of fiction and basically you are talking through your bottom....

Possibly we just know a different group of expats.

David

[MEL1]

Well the list has Beijing and Shanghai in the wrong order for a start, as I have lived in both for over 2 years each. Shanghai is at least 1.5 times more expensive than Beijing, and that's living in a basic domestic situ. Yes, I had the luxury of a high paid job, and agree with much of the above, but I didn't live as a so called tourist - I lived with my wife as fitting into the society level we fitted into. Regardless of the society level, Shanghai is a heck of a lot more expensive per level than Beijing.

That makes me feel that the whole report is wrong....

-mel.

[PaullyW]

Well the list has Beijing and Shanghai in the wrong order for a start, as I have lived in both for over 2 years each. Shanghai is at least 1.5 times more expensive than Beijing, and that's living in a basic domestic situ. Yes, I had the luxury of a high paid job, and agree with much of the above, but I didn't live as a so called tourist - I lived with my wife as fitting into the society level we fitted into. Regardless of the society level, Shanghai is a heck of a lot more expensive per level than Beijing.

That makes me feel that the whole report is wrong....

-mel.

I think it really depends on the 'basket of items' that are used to arrive at the measurement.

For example, in Bangkok, it is quite well known in the expat assignee community that the best international schools are tremendously expensive as a percentage of earnings whereas in another city, the international schools might be priced lower as a percentage of earnings.

I think your impression of a city is wholly dependent upon what you spend money on. If they broke down the list for us per item, then we'd be able to make a better assesment of which cities would be less or more expensive for us depending on how we spend our money.

For example, in Bangkok, food is cheap as hell, housing is average, but schooling is outrageously expensive. In Singapore, everything is expensive.

Edited June 23, 2012 by PaullyW

[TonyGilbert]

As Misterwhisper noted, most of these surveys are "more often than not orient themselves on the living expenses of highly paid international expat executives in top firms, who live in grand mansions, are ferried around in luxury limousines, employ a bunch of domesic helpers, join the most exclusive health and sports and what not clubs, eat out at first-class establishments, send their kids to exclusive international schools and lodge in 5-star hotels during their weekend getaways." Most average Hi-So don't even live like that. (Though I'm sure they would like to).

Most of the "international assignees" I have met live more like tourists rather than trying to integrate into the local economy. As we all know, being a tourist costs more than living within the local economy. McDonalds is more expensive than good quality Thai food. Of course, most of the international assignees are essentially tourists with an expense account. They come on assignment for work and generally are not settling in for the long term. When their assignment ends after a year or however long it is, they move on. They really never put down roots with the intent of staying.

I too wonder why anyone thinks these surveys reflect anything other than the lives of people living in a bubble.

David

Umhhh... perhaps because the survey is aimed at companies assigning expats to live in foreign countries and wanting to know how much they need to pay them? Don't worry, it'll all be over in a couple of years. The expat luxury life is fast coming to an end. My employer used to have over 50 people on expat packages, but now has only 2 worldwide. The rest are local hires.

[TonyGilbert]

Well the list has Beijing and Shanghai in the wrong order for a start, as I have lived in both for over 2 years each. Shanghai is at least 1.5 times more expensive than Beijing, and that's living in a basic domestic situ. Yes, I had the luxury of a high paid job, and agree with much of the above, but I didn't live as a so called tourist - I lived with my wife as fitting into the society level we fitted into. Regardless of the society level, Shanghai is a heck of a lot more expensive per level than Beijing.

That makes me feel that the whole report is wrong....

-mel.

Comparative costs for Beijing and Shanghai are hard to decipher because although Shanghai is generally more expensive than Beijing, the lack of competition for some services like domestics, expat housing and international schools in Beijing may mean those cost components are actually higher in Beijing then Shanghai. In any case, you'd have to pay an exec more to live in Beijing than in Shanghai just because of the hardships of living in Beijing. All the heat and dust, then freeze your ass off and wade through snow. Phhfffhhh.... In any case (and I do surveys as part of my job), the answer you get always depends on how you ask the questions.

[MrRealDeal]

Always shaking my head over the relevance of such surveys, because they more often than not orient themselves on the living expenses of highly paid international expat executives in top firms, who live in grand mansions, are ferried around in luxury limousines, employ a bunch of domesic helpers, join the most exclusive health and sports and what not clubs, eat out at first-class establishments, send their kids to exclusive international schools and lodge in 5-star hotels during their weekend getaways.

Granted, Bangkok is no longer as affordable as it used to be, say, 15 years ago. But it's still possible to rent a very decent apartment or even small house for 10,000 to 15,000 Baht or thereabouts, keep expenses down by eating in "normal" local restaurants and not hitting the girlie bars every single night, and here you can even still afford to live without your own car, because taxis are plentiful and cheap.

Then again, during house searches I've been taken to downtown houses that were offered for "only" 150,000 Baht ($5,000) a month - and were almost unfurnished and from the inside looked dilapidated - with the respective owners arguing that "the location is unbeatable, hence the rent is justified". Maybe so, but certainly not within my budget. Come on, I mean who honestly could say they can afford back home to shell out 5 grand just in rent every month?

If you look at it from this perspective, then Bangkok surely is rather expensive.

Most people dont want to live in a 15,000 bht craphole

[TinoThailand]

Always shaking my head over the relevance of such surveys, because they more often than not orient themselves on the living expenses of highly paid international expat executives in top firms, who live in grand mansions, are ferried around in luxury limousines, employ a bunch of domesic helpers, join the most exclusive health and sports and what not clubs, eat out at first-class establishments, send their kids to exclusive international schools and lodge in 5-star hotels during their weekend getaways.

Granted, Bangkok is no longer as affordable as it used to be, say, 15 years ago. But it's still possible to rent a very decent apartment or even small house for 10,000 to 15,000 Baht or thereabouts, keep expenses down by eating in "normal" local restaurants and not hitting the girlie bars every single night, and here you can even still afford to live without your own car, because taxis are plentiful and cheap.

Then again, during house searches I've been taken to downtown houses that were offered for "only" 150,000 Baht ($5,000) a month - and were almost unfurnished and from the inside looked dilapidated - with the respective owners arguing that "the location is unbeatable, hence the rent is justified". Maybe so, but certainly not within my budget. Come on, I mean who honestly could say they can afford back home to shell out 5 grand just in rent every month?

If you look at it from this perspective, then Bangkok surely is rather expensive.

I live at the center of Chiang Mai, my studio costs me 2.500 Baht a month, not so small, hot water shower, furniture...

[TinoThailand]

Always shaking my head over the relevance of such surveys, because they more often than not orient themselves on the living expenses of highly paid international expat executives in top firms, who live in grand mansions, are ferried around in luxury limousines, employ a bunch of domesic helpers, join the most exclusive health and sports and what not clubs, eat out at first-class establishments, send their kids to exclusive international schools and lodge in 5-star hotels during their weekend getaways.

Granted, Bangkok is no longer as affordable as it used to be, say, 15 years ago. But it's still possible to rent a very decent apartment or even small house for 10,000 to 15,000 Baht or thereabouts, keep expenses down by eating in "normal" local restaurants and not hitting the girlie bars every single night, and here you can even still afford to live without your own car, because taxis are plentiful and cheap.

Then again, during house searches I've been taken to downtown houses that were offered for "only" 150,000 Baht ($5,000) a month - and were almost unfurnished and from the inside looked dilapidated - with the respective owners arguing that "the location is unbeatable, hence the rent is justified". Maybe so, but certainly not within my budget. Come on, I mean who honestly could say they can afford back home to shell out 5 grand just in rent every month?

If you look at it from this perspective, then Bangkok surely is rather expensive.

Most people dont want to live in a 15,000 bht craphole

BS! I can find very nice houses for this price with 4+ bedrooms. So maybe you not look well. Mostly if you take the top search from google you pay more. They pay a lot for promotion, advertising and cars to show you around.

Most "farang" people live in something with a price below 15.000 bht a month, i don't know how big your world is but it's true.

[supashot]

I agree Japan is not as expensive as I hear all the time. Bangkok is getting more and more expensive, event the rent in Bangkok are getting close to the ones in Paris, or even Madrid. Just look at the adds in the forums to rent a house around popular areas such as Thong Lo or even Ekkamai.

[55Jay]

Huh, seems the same in some government circles?

Where I'm at, government folks get what I consider to be way too much money for rent allowance. It drives the market up once the agent or LL seees the mark coming. The person doesn't care, they will pay their ceiling as they don't get to keep the difference even if they negotiated lower so this keeps the rent rate artificially high.

I've been on both sides but am no longer government but still "look" like one of them being an American. I get marked then have to work to get the price down to planet earth. The selfish motivation is I have a set allowance with my company (it's good but not like I had in the government) but if I can negotiate lower, I still get the same allowance.