Changing Dynamics: The Shifting Landscape for Expatriates
As the world continues to evolve, so does the landscape for expatriates living in Asia. Recent reports1 and forecasts indicate significant changes in the rankings and housing markets of major Asian cities, bringing to light new considerations for expats residing in or planning to move to Asia. In this article, we delve into the latest developments, with a focus on New York overtaking Hong Kong in the ECA International rankings, the decline of other Asian cities, and the concerning forecasts for Hong Kong’s housing market in particular.
New York Takes the Lead
In a surprising turn of events, New York has surpassed Hong Kong to become the top-ranked city in the ECA International rankings. This shift reflects the changing economic landscape and the attractiveness of New York as a destination for expatriates seeking professional opportunities.
While Hong Kong’s fall in the rankings may have grabbed the headlines, it is important to note that other Asian cities have also witnessed a decline. Tokyo, once a popular choice for expatriates, dropped five spots to number 10 in the rankings. This decline suggests that the city’s appeal may be waning due to various factors, including economic challenges and increasing competition from other global cities.
The property market in Hong Kong has been under considerable strain, with the situation exacerbated by the global pandemic. JLL, a leading real estate firm, has predicted a further decline in prices, estimating a 5 to 10 percent drop in the second half of 2023. This projection indicates a cumulative decrease of 5 to 82 percent for the entire year. The prolonged adjustment period and the absence of a clear bottom in the market are worrying signs for homeowners.
So what are the implications for expats who largely rent for short periods rather than own property in Asia? For those currently residing in Hong Kong, the declining housing market may lead to opportunities for negotiation and securing favorable rental agreements. Conversely, expatriates planning to relocate to Hong Kong or other Asian cities should approach the housing market with caution, conducting thorough research and considering alternative options before making any commitments.
Given the changing dynamics in Asia, some expatriates may opt to explore alternative destinations. Cities such as Singapore, Shanghai, and Sydney have consistently ranked highly in terms of quality of life and business opportunities. These cities offer vibrant expatriate communities, robust economies, and relatively stable housing markets, making them attractive options for upmarket expats seeking a new Asian experience.
The shifting landscape for expatriates in Asia brings both challenges and opportunities. With New York surpassing Hong Kong in the ECA International rankings and other Asian cities experiencing declines, expats must adapt to these changes when making decisions regarding their current or future residence. The forecasted decline in Hong Kong’s housing market further underscores the need for caution and diligent research or delegation to a relocations services company like SilkRelo.
By staying informed and relying on experts with Asian experience, expatriates can navigate these shifting dynamics and make informed choices that align with their lifestyle, mitigate risk and land on both feet.