Hong Kong is now ranked as the third most expensive city to live in across Asia, according to Numbeo’s latest cost-of-living index. In this ranking, Hong Kong surpasses other Chinese cities such as Suzhou (24th), Shanghai (26th), Beijing (30th), and Shenzhen (31st). This index excludes housing costs and focuses primarily on everyday expenses, including groceries, dining, and transportation.
However, when housing costs are considered separately through the Rent Index, which compares rental prices in each city relative to New York City, Hong Kong rises to second place in Asia.
The Rising Cost of Living in Hong Kong
Hong Kong ranks as the third most expensive city in Asia, following Singapore and Tel Aviv-Yafo. Other cities in the top 10 include Tokyo, Seoul, and Shanghai, with Hong Kong surpassing them all in terms of everyday expenses.
This rising cost of living is further confirmed by multiple studies: in 2023, Hong Kong was ranked as the second most expensive city in the world, losing the top spot to New York (source), and remains the most expensive city for expatriates, according to Mercer’s 2024 rankings (source).
As a result of this high cost of living, many Hongkongers are increasingly crossing the border to Shenzhen, which ranks 31st in Asia and 211th globally, looking for cheaper prices for daily essentials, dining, and entertainment. According to Al Jazeera, Shenzhen’s affordable alternatives are now drawing more and more people from Hong Kong, as they seek cost-effective options that are simply out of reach at home (source).
Global Comparison Highlights Hong Kong’s Competitive Position
Globally, Zurich, Switzerland, leads the cost-of-living rankings, followed by Geneva and Lausanne. US cities, including New York, San Francisco, and Boston, dominate the top 10.
Singapore, ranked 9th, is the first Asian city in the TOP10. In comparison, Beijing (23rd) and Shanghai (26th) are much lower, highlighting Hong Kong’s higher living costs. Despite this, Hong Kong remains a key global financial hub, ranking 23rd globally, up five spots from 2023.
In 2025, Hong Kong secured the 4th spot in the Asia-Pacific’s Best Cities report, behind Singapore, Tokyo, and Seoul (source). While the city performs well in terms of liveability and prosperity, its high cost of living is exacerbating demographic challenges. Hong Kong currently holds the world’s second-lowest fertility rate at 0.73 births per woman, a situation that could be partly driven by rising living costs, as outlined in a recent United Nations report (source).
Header Image Credit: Lung Po Chan via Canva
