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Two subjects currently spark heated discussions about inflation at expat dinner parties in Singapore: the rising rental costs and Taylor Swift.
When it comes to rent, reactions vary depending on whether you belong to the majority of people experiencing a significant increase or the fortunate few with only a slight rise. On the other hand, the mention of Taylor Swift ignites a fierce debate comparing Singapore to Hong Kong, a favorite topic among party-goers.
Taylor Swift, like Harry Styles and Coldplay, will be performing in Singapore but has excluded Hong Kong from next year’s international tour. While she performed in the Chinese special administrative region during her 2011 tour, Singapore will be hosting six concerts, more than Sydney, Tokyo, or Mexico City.
The reasons behind Hong Kong’s exclusion remain unclear. Speculations on social media range from the national security law to the lack of suitable venues. Regardless, these musical decisions, along with escalating rents, reveal diverging fortunes of the two cities, at least in the short term.
For years, Hong Kong and Singapore have engaged in fierce competition to establish themselves as leading financial hubs. However, strict pandemic lockdowns, the enforcement of draconian national security laws, and deteriorating US-China relations have diminished Hong Kong’s appeal. In contrast, Singapore’s low taxes, stable rule of law, and neutral stance have made it increasingly attractive for both businesses and tourists. Surprisingly, Singapore now boasts higher total employment numbers than Hong Kong, despite the latter’s larger population.
Nevertheless, Singapore faces the downside of its success: soaring costs and limited management capabilities. An investment banker based in the city-state expressed his frustration, stating, “If two Beyoncé concerts apparently caused high inflation in Sweden, what will six Taylor Swift concerts do to Singapore?” He also mentioned his two daughters’ desire for VIP tickets.
Prior to ticket sales, prices for hotels and flights to Singapore during Swift’s performances have already skyrocketed. Some three- and four-star hotels are now 20% more expensive compared to the previous week, while flights from other Southeast Asian cities to Singapore are nearly triple the usual price range.
In response to requests for ad hoc school holidays during Swift’s visit, Singapore’s education minister, Chan Chun Sing, voiced concerns about potential inflationary effects.
Although Hong Kong outpaced Singapore in terms of inflation during the 1980s and 1990s, the roles have now reversed. In the past two years, Singapore has consistently experienced higher inflation than its rival. The influx of new residents and construction delays during the pandemic have driven rents to record levels. Knight Frank, a real estate group, reported that Singapore overtook New York as the city with the highest rental growth by the end of last year.
Due to its limited natural tourist attractions such as beaches or mountains, Singapore heavily relies on its reputation as a gastronomic hub. However, even its vibrant restaurant scene struggles with commercial property rents that defy the slowdown witnessed in other capitals. The manager of my favorite local Italian restaurant is relocating to a distant neighborhood after his rent was doubled by the landlord.
Despite the downsides for residents, the healthy rivalry with Hong Kong provides beneficial competition. It drives both cities to innovate, introducing new financial products and tax incentives to attract businesses and capital. Hong Kong, determined to regain some of its lost status, is already making efforts to lure back companies, professionals, and family offices.
Although some friends who had moved to Singapore during the pandemic are considering returning to Hong Kong, the allure of Taylor Swift may make them regret their decision. One of them, a lawyer with two kids, explained that she made the choice after her rent was increased by 120%. However, she also made a request before leaving: “I might need a place to stay if I manage to get Taylor Swift tickets. The hotel prices are too expensive.”
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