Hong Kong retains its crown as the world’s most expensive city for expatriates in 2025, according to Mercer’s authoritative Cost of Living Survey.
Mercer, a global leader in human resources consulting, has released its 30th annual Cost of Living Survey, evaluating 226 international hubs where companies frequently relocate employees. This in-depth analysis enables organizations to fine-tune compensation packages for globally mobile talent by benchmarking living expenses across continents.
Using New York City as the reference point, Mercer assesses the cost of living by examining over 200 essential goods and services—ranging from premium housing and transport to groceries, apparel, household items, and leisure activities. The survey also considers currency fluctuations against the US dollar and the volatile rental market in each destination.
Hong Kong’s sky-high property market remains the primary driver behind its top ranking. In 2025, the average monthly rent for a modern, three-bedroom unfurnished apartment in a prestigious neighborhood stands at approximately $14,500 (about £11,420), reflecting continued demand and limited supply. In comparison, a similar property in London now averages $7,800 (about £6,140).
At the other end of the spectrum, Islamabad, Pakistan has emerged as the most affordable city for expats this year, underscoring the stark global contrasts in living costs.
2025 Mercer Cost of Living Top 10
- 1. Hong Kong – China (Special Administrative Region)
- 2. Singapore – Singapore
- 3. Zurich – Switzerland
- 4. Geneva – Switzerland
- 5. Basel – Switzerland
- 6. New York City – United States
- 7. Bern – Switzerland
- 8. Tel Aviv – Israel
- 9. Tokyo – Japan
- 10. London – United Kingdom