What does it really cost to live in Singapore – the world’s ‘most expensive’ city?

When one mentions Singapore, familiar tropes come to mind. Over-the-top mansions in Crazy Rich Asians, the infinity pool at Marina Bay Sands and incredibly expensive cars.

With the Economist Intelligence Unit (EIU) Cost of Living survey declaring Singapore as the world’s most expensive city – tied with Zurich – no one was surprised.

But what does it really cost to live in Singapore?

We break down the components behind EIU’s cost of living survey and what it really costs to live in the world’s most expensive city.
 

Understanding how cost of living is measured in EIU’s survey

First, it’s important to understand the methodology behind how EIU calculated cost of living in its survey.

Designed to help Human Resources (HR) managers build compensation packages for relocated employees or ‘the international businessman’, the Worldwide Cost of Living survey does not include tax liabilities, home prices, or rent. It also doesn’t include goods from local markets, bazaars, and online marketplaces.

Instead, it weighs the prices of more than 200 products and services, some of which are exceptionally costly in tropical and land-scarce Singapore.

Its three biggest components are shopping basket (25%), transport (19.5%), and recreation and entertainment (18%), which includes green fees on golf courses, three-course dinners, prices of cars and their maintenance, and seasonal clothing.

This works against what life in Singapore looks like for the average resident. For example, it’s true that prices of car ownership is much higher in Singapore. However, with public transport easily accessible and much more affordable than other cities like London and New York, owning a car is not a necessity.

Green fees on golf courses are naturally much higher in a land-scarce city, and there is no need to account for seasonal clothing when it’s summer all year round.
 

It’s also important to consider the effects of exchange rates on calculations. EIU’s survey converts all prices to US dollars, making it sensitive to exchange rates. Thus, a relatively strong Singapore dollar has contributed to its higher ranking.

This, however, doesn’t raise the cost of living for those earning a Singapore income. On the contrary, it dampens imported inflation, lowering the local prices of foreign goods.
 

How does the cost of living in Singapore compare to other places?

The cost of living in Singapore is on average 41% lower than New York. To find out how does Singapore really stack up against other metropolitan cities like London and New York, we break down the cost of living in Singapore and share how you can make the most of your money here by living as the locals do.
 

How much does it cost to rent in Singapore?

At the top of every expat’s cost of living considerations is housing rent.

Like most cities, rent in Singapore is determined by proximity to the city centre and popular schools, the neighbourhood’s character and history, age of property, and access to transport. 

In recent years, there has been an upward trend in rent, triggered by shortages resulting from COVID-19 related construction delays, but this has since eased off to stable levels.

Private apartments in Singapore’s glamorous city centre neighbourhoods like Tanglin and Marina Bay, the equivalent of New York’s Upper East Side or Wall Street, can set you back from US$3,718 (S$5,509.62) to US$11,155 per month.
 

What sets Singapore apart is the abundance of public housing (HDB) blocks in city fringe districts. Those in Farrer Park, Bukit Merah, or Marine Parade are only 1 to 4 train stops or 5 to 15 minutes away from the city core. Many have a wealth of facilities such as eateries and clinics, as well as easy access to train stations, parks, and places of worship.

Apartments in these blocks are owned by citizens and permanent residents, but they offer an affordable rental option for foreigners, particularly those flying solo.

Living further away from the city centre may also be a great option if you’re moving as a young family. Rent in neighbourhoods such as Ang Mo Kio and Yishun are more affordable, ranging from US$1,880 to US$3,190 for a three-bedder. Apartments here are favoured for their proximity to schools and plenty of amenities such as malls, supermarkets, and clinics.

If public housing isn’t to your fancy, many also live on the fringes of the city centre instead. This opens your rental options to condominiums, apartments, and even landed property.

Given Singapore’s size and expansive public transport network, you’ll find that you’ll still be able to reach the Central Business District (CBD) or town centre within 30 to 45 minutes for most of Singapore.

Rent in Singapore’s mid-tier and city-fringe neighbourhoods, like Paya Lebar and Redhill, can be cheaper than their equivalents in Shepherd’s Bush in London and Brooklyn, New York.
 

Sources: propertyguru, MoneySmart (SG), Hudsons property, Benham and Reeves (UK), StreetEasy, Rent Hop, Apartments.com (US). Accessed March 2024.
 

Read our guide to Singapore neighbourhoods as you plan your move and calculate your living expenses. Where you choose to live in Singapore could greatly impact the cost of living.
 

What are the tax rates in Singapore?

Singapore has some of the world’s most favourable tax rates for individuals and businesses alike, contributing to a lower cost of living. This reflects Sovereign Group’s tax-adjusted Worldwide Cost of Living index, which finds Singapore’s cost of living as one of the lowest among the top cities.

Like Singapore citizens, foreigners pay a progressive rate based on income, with a maximum ceiling of 24%. This personal income tax cap is almost half the UK’s (45%). In the US, income received by foreigners is typically subject to a standard flat rate tax of 30%.
 

Source: Inland Revenue Authority of Singapore
 

The progressive tax rate system ensures that you are taxed based on your ability to pay, supporting fairness and economic equity.

Another beneficial tax condition here is that income earned from employment outside of Singapore is not taxable. This includes income received in a Singapore bank account. 

This contrasts with countries like the UK, where foreign income and capital gains are taxed if they are remitted to or used in the United Kingdom.

It’s also easy to file taxes in Singapore, where everything is digital and can be completed online. If your company is part of the auto-inclusion scheme, your taxes are automatically populated in IRAS’ system, and you’ll be able to file your taxes within 10 minutes!

For the latest information on taxes in Singapore, refer to the IRAS website.
 

How much does it cost to take public transport in Singapore?

With an extensive bus and Mass Rapid Transit (MRT) network connecting all of Singapore, public transport is the mode of choice for many residents. MRT fares average US$1.49 per trip for adults. A monthly commute to work typically adds up to about US$60. 
 

With one of the cheapest public transport systems in the world, Singapore comes out on top by a significant margin when compared to New York and London. New York’s base fares for subway and buses start at US$2.90, while London’s peak-hour fares go up to a staggering US$6.06.

Wait times between trains are short, averaging 4 to 6 minutes off-peak and 2 to 3 minutes during rush hours.

If you travel primarily on public transport like a majority of the locals, you shave significant dollars off your daily expenses, lowering the cost of living in Singapore.

Fun fact: the sleek and polished designs of our newer stations have been featured in international productions like HBO’s Westworld and the Netflix backed Korean drama, Little Women.
 

How much does it cost to own a car in Singapore?

Owning a car in Singapore is certainly pricier than in other countries – no argument about that! This is because the Certificate of Entitlement (COE) that every car owner must purchase averages a whopping US$75,000 for a sedan – and that excludes the costs of the car, road tax, fuel, and insurance. 

It’s a major contributing factor to Singapore being ranked the most expensive city in the EIU Cost of Living survey.
 

Source: https://dollarsandsense.sg/cost-owning-car-singapore/ 

There’s a reason for it, though. Given Singapore’s small size, the volume of traffic on the road is carefully controlled to ensure we meet sustainability goals as well as avoid traffic gridlocks common to dense cities.

Paired with Singapore’s compact size, an efficient and affordable public transport infrastructure means there is no need to own a car. This is unlike larger cities where driving an hour or more to your destination is common.

If you really need a car from time to time, rental services like GetGo are an affordable alternative that starts at US$2.20/hour and go up to US$65.50/day. Longer-term rentals start at US$283/week for non-luxury models. 

Taxis and ride-hailing services like Grab, CDGzig or Gojek are readily available in Singapore for around US$11 to US$26 per trip, less if you opt for shared rides. They peak during rush hour and after the last train service, but if you’re out exploring the best of Singapore’s nightlife, you probably shouldn’t be driving anyway!
 

2024 airport transfer fares and fees of metropolitan cities around the world.
 

Frequent flyers will be pleased to know that rides to and from Changi Airport are significantly cheaper compared to many major cities. The airport is also easily accessed via the MRT.

If you use a mix of these options, say a daily commute on public transport, a three-hour rental every fortnight, ride-hailing twice a week and one round trip to the airport, you’ll average only about US$260 to US$300 per month.
 

What is the cost of living in Singapore for food?

Another major contributing factor to the cost of living in Singapore is the food expenses.

While the amount you spend on meals varies widely based on your lifestyle, affordable meals may be found at numerous food stalls and hawker centres across Singapore.

These meals average US$2.23 to US$7.42, and beverages like local coffee (kopi), can go for as low as US$0.45 to US$1.08.
 

This food-rich city is also home to many Bib Gourmand listed eateries — many of which are locals’ favourite hawker stalls — so a delicious, quality meal in Singapore really does not have to break the bank!

For restaurant dining, the vast range in Singapore is a highlight for a nation of foodies. Casual dining costs about US$15 to US$26 per person, while world-class establishments like Odette will set you back by US$311 to US$446 per pax for a seven-course dinner, not including wine. 

Other top-rated options at enclaves like Dempsey Hill and Marina Bay will cost you US$72 to US$224 per pax. These prices are mostly aligned with the dining scenes of other Asian cities like Hong Kong and Shanghai.
 

For those who like to cook, monthly groceries average US$171 to US$298 for one, depending on your appetite for imported fruits, alcohol, red meat, and dairy.

Wet markets in Singapore, similar to farmer’s markets, offer produce at lower costs, especially if they’re regionally sourced or in season. Ask your neighbours and find out where and when to buy.
 

Based on consumer-aggregated data, food in Singapore is 27% cheaper than in New York and 15% cheaper than in London.
Source: expatistan.com, accessed March 2024

Our tip for managing your monthly food expenses? Do as the locals do. If you shop local and cook more than eat out, you could really save and lower the cost of living in Singapore!

How much do utilities cost in Singapore?

The average monthly electricity, gas, water, and garbage bills for an 85m2 apartment would cost US$123.10.

The cost of utilities in Singapore is generally reasonable, and comparable to other cities. Bear in mind that Singapore can get quite hot and humid though, so it could cost more if you prefer cranking up the air-conditioning.

Of course, living in Singapore also means you’ll need to stay connected. Home internet and cable (60 Mbps or more) costs US$33.72 on average.

A mobile phone plan can vary, depending on whether you choose a SIM-only plan or a contract that covers the phone as well. For postpaid subscriptions, you can expect to be paying about US$26 to US$74 per month.
 

Are healthcare costs expensive in Singapore?

Singapore has a robust public healthcare infrastructure. Health practitioners and carers are heavily regulated, so your wellbeing is in good hands across a variety of fields, including traditional Chinese medicine.

While charges at public hospitals are higher for foreign patients (it’s subsidised for citizens), employer-provided health insurance is the norm for most expat packages. Make sure to prioritise this coverage in contract negotiations!

If not, private insurance is reasonably priced – starting from as low as US$370 per year. Expect to pay around US$1,500 annually for a basic policy covering hospitalisation and surgery.
 

Treatment costs in Singapore are generally transparent or available upon request, allowing you to plan accordingly. And the variety of public, private and international facilities means you won’t have much trouble finding healthcare tailored to your needs and budget.

Out-of-pocket costs in Singapore, sans insurance, remain significantly lower when compared to the cost of care in other countries:
 

Estimates for basic healthcare for uninsured expats and travellers. These may differ and will vary based on service provider, location, level of care required and your resident status/patient eligibility.
Sources: Department of Health, Australia/Victoria; Hospital Authority, Hong Kong; International Citizens Group; American Family Care

Is education expensive to afford in Singapore?

When it comes to your child's education in Singapore, you have a broad spectrum of high quality options in terms of culture, amenities, and programmes.

International schools offer globally-recognised curriculums, faculties and facilities, with annual tuition ranging from US$12,645 to US$37,191. These rates are on par with other expat centres like New York (US$13,700 to US$65,850) and London (US$9,665 to US$48,127).
 

Public schools offer more accessible fees and provide a strong bilingual foundation in English and mother tongue languages. It’s a great opportunity for you to immerse your children in local culture while experiencing Singapore's renowned education system.

Government-run kindergartens are subject to availability for foreigners. More than likely, you’ll have to depend on private operators, who charge anywhere from US$520 up to US$2,231 per month.

Source: Ministry of Education, Singapore
 

What is the average salary/income working in Singapore?

As we compare the costs of basic necessities, it is also imperative to consider how much on average an expat earns in Singapore, compared to other cities.

As a global hub with one of the world’s most competitive workforces, Singapore is a magnet for the best talent.

Generally, skilled workers based in Singapore can expect to receive a good salary, which makes the cost of living in Singapore more manageable.

A survey by ECA International in 2022 showed that expat pay packages for middle managers in Singapore rose by 4% to US$258,762 (SGD $342,218).

Ultimately, whether you are looking to grow your career or build a life in this city, you should be able to live comfortably within your means here.

What is the average cost of living in Singapore?

In summary, the estimated monthly living expenses in Singapore for a single person is $1,391 to $4,076.

Compared to a similar metropolitan city like New York, the average cost of living in Singapore is 41% less expensive.

• Rent in Singapore is 21% cheaper than in New York.
• Food in Singapore is 41% cheaper than in New York.
• Transportation in Singapore is 35% cheaper than in New York.
• Entertainment is 64% cheaper than in New York.

Estimates based on the average spend per month for a single person.
Sources: expatistan.com, SimplyGo Singapore, NYC.gov, https://housinganywhere.com/New-York--United-States/cost-of-living-nyc;

Of course, the cost of living in Singapore is subject to every individual’s needs and lifestyle. Use our Cost of Living Calculator to estimate your monthly living expenses in Singapore.
 

Conclusion – A great place to live?

Living in Singapore may not be cheap, but it also isn’t necessarily as expensive as other top-tier cities. There are fewer hidden costs, public transport is affordable, taxes are lower, and it’s also a great base from which to explore the rest of Asia. 

Besides Singapore’s cost of living, the city is also favoured for its infrastructure, quality of living, and global connectivity. In fact, Singapore ranks as the most liveable city for expats! Learn all the reasons why here.

With careful planning and smart budgeting, living in Singapore need not be a pipe dream.

Ready to make a move? Download our Guide to Living in Singapore to get started!
 

This article was first published by Singapore Global Network (SGN), an over 120,000-strong network of global professionals and friends. Join the network for free today to gain access to exclusive events, industry insights and member-exclusive perks.