So, which is it? Is Singapore indeed too expensive for comfortable living, or is it an expat paradise hidden in plain sight? Let's take a closer look.
How much does it cost to live in Singapore?
Naturally, how much you will spend in Singapore or elsewhere in the world has a lot to do with lifestyle. However, let's imagine that you are single and have just moved into the city.
Now, you may decide to start off small and bring down the costs right away by sharing an apartment. However, if you want some privacy, you will probably be renting a one-bedroom apartment. Based on how close to the city center you want to live and how big and modern you want your apartment to be, expect to pay somewhere between SGD 1,800 and SGD 3,000 (USD 1,300 to $2,200). Keep in mind that the average size of a one-bedroom apartment in Singapore is 45 square meters.
If you live far enough from work, you will need to take the metro - this will probably cost you around SGD 150 per month (around USD 110). If you are looking for comfort, Grab taxis are a popular way of getting around the city. However, taxi fares are getting more expensive, with many expats complaining that a 10-minute ride may cost upwards of USD 10.
A food court meal may cost anywhere from SGD 5 to $10 (USD 3.7 to $7.3), while cooking at home will set you back from SGD 250 to $400 (USD 250–300).
Utility bills can range from SGD 50 to SGD 200 (USD 36 to $147). And a strong internet connection is between SGD 30 to $60 (USD 22 to $44).
In January of 2024, Singapore also raised the Goods and Services Tax (GST) to 8 %. The bigger your family, the higher your costs will get. On Reddit, one expat even went as far as to suggest that a family with three kids will need an annual income of at least SGD 500,000 (USD 376,000) to maintain a high quality of living, including international travel.
Why are the costs rising?
One of your primary expenses when living in Singapore will be housing. And the rising real estate market prices play a major role in the increasing cost of living.
As one expat comments: “I already decided to leave SG after 12 years. Rent has been through the roof. I stay in a condo for which the rent is SGD 4200, and the landlord is asking SGD 7500 for renewal. This is absurd.”
Singapore is small and has limited land, so the demand for housing is high. This explains why both rental and for-sale property prices generally see a steep upward trajectory.
Singapore's escalating rent prices have even come into the spotlight recently when a British expat going under @salshoult posted a TikTok commenting on her landlord's plan to increase her rent by 75%, calling it “a good deal”.
Moreover, Singapore is home to many international schools, making it an attractive destination for parents from neighboring Asian countries. The more families relocate to Singapore, the less housing is available there is, and the higher prices will rise. But there is a catch: as rent prices and other living costs continue to increase, foreign teachers in Singapore find it more and more difficult to afford their stay. As they move to other destinations, schools lose workforce, complicating the situation further.
The increased cost of housing not only affects living expenses directly but also leads to higher costs for services and goods in Singapore as landlords look for ways to deal with high overheads.
What does the future look like for expats in Singapore?
The future for expats in Singapore seems to be changing. As the already high cost of living keeps increasing, many expats find it financially unreasonable to stay in the country and move on to other destinations.
So, while Singapore remains an attractive destination for international companies and talent, the rising cost of living is starting to affect the expat demographic in the country. Pierre has lived in Singapore for over ten years but is now considering relocation. “I am working in Singapore on a “local” package, which means I pay my own rent and travel expenses. And they are getting too much to justify my stay here and working as much as I do. I make a good salary, but it's starting to feel like less month by month.”.
And while the cost of living is rising quickly, salaries can't quite catch up. Worker salaries in Singapore rose by 4% in 2023. However, despite these raises, the high inflation rate in 2023 effectively reduced real wages by 1.5%.
Julia, who works as a marketing manager for a tech company in Singapore, explains: I've always thought that I make a good salary. But it all started to change last year when I began to afford less and less. I am now on a strict budget — even though my salary is higher than the average in the country."
It looks like Singapore remains a solid choice for high-level foreign executives who move here on the “all expenses paid” offers. Companies that want to attract new talent may need to look into the option of covering living expenses for new hires to make their offers more financially viable.
International companies may need to look into relocating their staff. In fact, according to a survey by the European Chamber of Commerce in Singapore (EuroCham), 7 out of 10 Singapore-based businesses, foreign and local, will consider relocating their staff if living costs continue to rise.
If you are currently based in Singapore, what do you think of the rising living costs? Are you looking into relocation options, or have you found an effective way to manage costs?
