Bangkok climbs up rankings on living costs

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Bangkok climbs up rankings on living costs

By   THE NATION 

 

 

BANGKOK has been ranked the 63rd most expensive location in a cost of living survey for expatriates.

 

 The survey, published by ECA International, also found that Singapore has experienced a significant rise in the rankings, becoming the 12th most expensive location in the world for expatriates. 

 

“We have seen the cost of living in Thailand increase over several years now. Bangkok especially has risen by over 100 places in the space of five years, and is now the 63rd most expensive location in our list,” Lee Quane, regional director for Asia at ECA International said yesterday.

 

 “In doing so, it has moved into a category of relatively expensive locations in Asia. The city is now significantly more expensive than regional capitals including Jakarta, Kuala Lumpur and Manila. “Meanwhile, Singapore’s rise in our rankings is largely due to another strong year for the Singapore dollar.”

 

While increases in prices have been small over the past year, the strength of the Singapore dollar relative to other currencies makes Singapore the 12th most expensive location in the world and the sixth in Asia, overtaking Beijing, Busan and Yokohama from a year ago. This also marks the continuation of a longer-term trend, with Singapore rising 18 places since 2014 when it was 30th in the global rankings.

 

The ECA's Cost of Living Survey compares a basket of like-for-like consumer goods and services commonly purchased by international assignees in 482 locations worldwide. The survey helps businesses ensure that their employees’ spending power is maintained when they are sent on international assignments. 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 the ECA’s cost of living basket. ECA International has been conducting research into cost of living for over 45 years.

 

Hong Kong is now the fourth-most expensive location in the world for expatriates, up from 11th last year, and the second most expensive location in Asia. After being ranked in 28th place just five years ago, Hong Kong now sits only behind Ashgabat, Turkmenistan, and the Swiss cities Zurich and Geneva.

 

Hong Kong is now one of the top five most expensive locations for expatriates, primarily due to the continued strength of the Hong Kong dollar and relatively higher rates of inflation witnessed in the Chinese Special Administrative Region in the past 12 months. Prices in Hong Kong rose at a faster rate in the past 12 months compared to Tokyo, Shanghai and Seoul – all of which were ranked higher in our previous survey, Quane said.

 

The Chinese cities included in the rankings all remained fairly static, with none of the 14 locations moving more than four places. Shanghai was the only mainland Chinese city to feature in the global top 10, staying in 10th place.

 

“The Chinese yuan has been very stable compared to other currencies during the survey period. Inflation in tier-one cities such as Beijing and Shanghai has been much more moderate when compared to other Asian cities which are situated towards the upper end of our rankings,” Quane said.

 

“Prices have risen at a faster rate in tier-two locations, resulting in a narrowing gap in living costs for expatriate workers in tier-one and tier-two cities in the past year. This represents the continuation of a trend we have observed, with several developing cities such as Chengdu and Tianjin rising significantly in our rankings over the course of the past five years. All 14 of the Chinese cities in our rankings now feature in the global top 50, as compared to five years ago when there were only four.”

 

The location with the highest cost of living in the world was Ashgabat in Turkmenistan, which rose 110 places from last year.

 

Quane said that although the rise of Ashgabat in the rankings may be a surprise to some, those familiar with the economic and currency issues experienced by Turkmenistan over the past few years may have seen this coming. “Ever-escalating levels of inflation, coupled with a prominent illegal black market for foreign currencies have pushed up the cost of imports. This implies that the costs for visitors in Ashgabat, at the official exchange rate, have increased enormously – putting it firmly at the top of the rankings,” Quane said.

 

ECA International is a provider of knowledge, information and software for the management and assignment of employees.

 

Source: http://www.nationmultimedia.com/detail/breakingnews/30371048

 

-- © Copyright The Nation 2019-06-14

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[arithai12]

Wrong title. It should read "Thai Baht climbs up rankings of exchange rates."

[dinsdale]

Pretty sure TOT will come out with a list today saying how BKK has jumped up the list of some nonsense ranking that it's an even more popular destination.

[Emdog]

".....a basket of like-for-like consumer goods and services commonly purchased by international assignees..."

Not me or my friends. International corporations or governments usually pay quite well, often include hardship pay (yeah, right). "I'll have to cut back my home staff from 5 to 4. Oh the devastation"

[miamiman123]

I think Manila likely more than bkk. 

[Sydebolle]

Fact is, that cost have gone up - BUT refer to the CPI for THAIS!
Fact is, that the Thai Baht is being heaviliest supported by the Bank of Thailand!
Fact is, that less resident alien live in Thailand (for various reasons, employer downsizing/moving elsewhere or retirees who move in large numbers to cheaper/less bureaucratic countries)
Fact is also, that prices were increased due to lower demand with the (Thai) idea, the fewer now have to pay more for the declining demand (no joke, heard that the other day in a store by the store owner lady)
Fact is, that despite the strenghtening of the THB no currency adjustment has been made on any imported product; normally one could expect a cheaper THB price

[Zack61]

58 minutes ago, Sydebolle said:

Fact is, that despite the strenghtening of the THB no currency adjustment has been made on any imported product; normally one could expect a cheaper THB price

There has been nothing but consistent price rises of imported food stuff. 

[hotchilli]

5 hours ago, arithai12 said:

Wrong title. It should read "Thai Baht climbs up rankings of exchange rates."

Both are correct, statistically Bangkok is rising up the list as for cost of living is concerned while plunging exchange rates widen the gap further.

[wotsdermatter]

1 hour ago, Zack61 said:

There has been nothing but consistent price rises of imported food stuff.

It is not just the increase in prices for imported food products.  I am now in Toronto and just received an e-mail from the receptionist where I stay in Bangkok.  She told me that the monthly rental fee has increased as have the water and electricity prices.  Am I going back to Thailand?  No, because at 78 the proposed mandatory health insurance the Thai government wants me to have will cost me CAD 1500 and that does not cover in hospital stays.  Also, other financial aspects such as the time and money needed to obtain a visa are too extensive now.  What many fail to realise, and that especially includes having to buy a ticket before making a request for the visa and if the visa application is rejected then the ticket cannot be returned unless one buys cancellation insurance.  Spiralling costs going up not down.  The total journey time from the time I leave my place in T.O. to reaching my place in BKK is about 30 hours and the return journey is even longer because of a protracted layover in China at a terribly dismal airport near Shanghai.

'nuf sed.

[mike787]

13 minutes ago, wotsdermatter said:

It is not just the increase in prices for imported food products.  I am now in Toronto and just received an e-mail from the receptionist where I stay in Bangkok.  She told me that the monthly rental fee has increased as have the water and electricity prices.  Am I going back to Thailand?  No, because at 78 the proposed mandatory health insurance the Thai government wants me to have will cost me CAD 1500 and that does not cover in hospital stays.  Also, other financial aspects such as the time and money needed to obtain a visa are too extensive now.  What many fail to realise, and that especially includes having to buy a ticket before making a request for the visa and if the visa application is rejected then the ticket cannot be returned unless one buys cancellation insurance.  Spiralling costs going up not down.  The total journey time from the time I leave my place in T.O. to reaching my place in BKK is about 30 hours and the return journey is even longer because of a protracted layover in China at a terribly dismal airport near Shanghai.

'nuf sed.

Absolutely correct!!  Thank god this planet has other countries as options.  Thailand is not a place to retire.  No way! 

[Jimbo2014]

Yup - we have a timeframe for getting out now.  Unfortunately still 4 years.  RIP paradise.

[Orton Rd]

Went to the barbers today, he, and all the others of course as no competition, just increased the price from 80 to 100 baht for a cut. One years ago they were charging 60, quite an increase.

[khunPer]

Its seem to be depending of which Index one looks at. In Numbeo, which count USA and New York as index 100 for comparison, Hong Kong is number 40 in their list (number is depending how many cities that are measured), or index Cost-of-living as 78.14; whilst Bangkok is number 216, with Cost-of-living index 55.25, i.e. almost half price of living New York, if one live equivalent to the index specifications.

 

New York is number 10, the remaining Top-10s are 6 cities in Switzerland – Basel #1 with index 131.37 – followed by Norway and Iceland. USA and Norway shares the following positions in the list until number 17, which is Luxemburg, followed by Tokyo, Copenhagen, and Paris.

 

The list is quite detailed by separately indexing rent, croceries, restaurant prices, and local purchasing power. It can be found here.

????

[Shocked farang]

4 hours ago, Zack61 said:

There has been nothing but consistent price rises of imported food stuff. 

Yes, compared to Cambodia for example imported food prices in Thailand are outrageous. The local manufacturers support this government and in exchange they impose high tariffs on imported goods. When I am in Thailand I try to avoid imported foods at all cost. 

[Ctkong]

1 hour ago, Orton Rd said:

Went to the barbers today, he, and all the others of course as no competition, just increased the price from 80 to 100 baht for a cut. One years ago they were charging 60, quite an increase.

I would often tip the guy with a 100 baht bill for the 80 baht cut. If price increased to 100, then no tip from me. 

[thaimacky]

Quote

Fact is also, that prices were increased due to lower demand with the (Thai) idea, the fewer now have to pay more for the declining demand (no joke, heard that the other day in a store by the store owner lady)

The first time I heard this was more than 20 years ago in Soi Cowboy during low season when they increased the prices for a beer ;))

[Baerboxer]

9 hours ago, dinsdale said:

Pretty sure TOT will come out with a list today saying how BKK has jumped up the list of some nonsense ranking that it's an even more popular destination.

 

Why would the Thai telephone people make such a comment?

[MarkyM3]

3 hours ago, khunPer said:

Its seem to be depending of which Index one looks at. In Numbeo, which count USA and New York as index 100 for comparison, Hong Kong is number 40 in their list (number is depending how many cities that are measured), or index Cost-of-living as 78.14; whilst Bangkok is number 216, with Cost-of-living index 55.25, i.e. almost half price of living New York, if one live equivalent to the index specifications.

 

New York is number 10, the remaining Top-10s are 6 cities in Switzerland – Basel #1 with index 131.37 – followed by Norway and Iceland. USA and Norway shares the following positions in the list until number 17, which is Luxemburg, followed by Tokyo, Copenhagen, and Paris.

 

The list is quite detailed by separately indexing rent, croceries, restaurant prices, and local purchasing power. It can be found here.

????

As someone who spends 4 months in Bangkok and rest of the year in the UK, I find the reliability of those stats to be very questionable, based upon my own observations. They are submitted by real people, for sure, but there is no way to ensure they are actually on a like-for-like comparison. Example - 60 baht quoted for a meal in Thailand, 15 GBP in UK. Just isn't correct, on a like-for-like basis, no matter what exchange rate you use. Several of the other ones do not stand up to scrutiny either in my experience.  

 

Property costs are a key factor. They need to be quoted per average sq m in like-for-like locations. No doubt property is cheaper and potentially much nicer away from Bangkok but make the comparison meaningful. Prices in London or SE England, for example, are not reflected in other parts of the UK. 

[dinsdale]

6 hours ago, Baerboxer said:

 

Why would the Thai telephone people make such a comment?

Fairly sure you knew I meant TAT.

[spidermike007]

Despite government protestations to the contrary both here and in the US, inflation is rampant. Prices are going up everywhere I look. The official inflation numbers here in Thailand are 0.4%! That is about as phony as it gets.

 

I see products I paid 100 baht for last month, having gone up to 120 baht. That is a 20% increase. I see rents going up, real estate prices going up, gas going up, car repairs going up. Sometimes by 5%. Sometimes by 40%. And they have the nerve to quote 0.4%! Such unbelievable nonsense. BS on a mega level.