China’s Silicon Valley tops the list for lowest cost of living for locals and expats

Rising living costs are something most of us have to endure, which is why some choose to pack up and move abroad in search of a more affordable lifestyle. But which cities are genuinely the easiest on the wallet? A new study by Singapore’s Lee Kuan Yew School of Public Policy has the answer – and topping the list is Shenzhen, China, ranked as the most affordable city for both locals and expats.

The research compared 45 cities across Asia, Australasia, Europe and North America, taking into account factors such as housing markets, education fees and transport costs. Unsurprisingly, New York, Zurich and Los Angeles are the priciest cities for both expats and residents. The study highlights that the most expensive cities remain concentrated in North America and Western Europe.

On the flip side, Shenzhen leads the list of the world’s most affordable cities for expats. Despite being dubbed China’s Silicon Valley and serving as the country’s third most populous city after Shanghai and Beijing, Shenzhen still boasts relatively low housing prices compared to the other global cities. Bangkok takes second place, followed by Osaka and Kobe in joint third.

The top 10 cities with the lowest cost of living for expats: 

1. Shenzhen, China
2. Bangkok, Thailand
3. Osaka and Kobe, Japan
4. Ho Chi Minh, Vietnam
5. Taipei, Taiwan
6. Hanoi, Vietnam
7. Manila, Philippines
8. Jakarta, Indonesia
9. Kuala Lumpur, Malaysia
10. Mumbai, India  

Shenzhen also has the lowest cost of living for locals, with Beijing and Taipei ranked second and third respectively. 

The top 10 cities with the lowest cost of living for residents: 

1. Shenzhen, China
2. Beijing, China
3. Taipei, Taiwan
4. Manila, Philippines
5. Jakarta, Indonesia
6. Kuala Lumpur, Malaysia
7. Bangkok, Thailand
8. Hanoi, Vietnam
9. Ho Chi Minh, Vietnam
10. Mumbai, India  

While most rankings stayed the same as last year, Manila and Hanoi climbed slightly, while Jakarta and Mumbai dropped down a notch. The study notes that it’s unsurprising that the cheapest cities are largely in Southeast Asia, a region where lower housing and living costs continue to set it apart from the West. 

Read the full report here.

Did you know? These two stationery shops in Japan were voted among the world’s best souvenir shops in 2025

Plus: Courtyard by Marriott debuts first hotel in Kyoto, set near the Gion geisha district and Yasaka Shrine

Stay in the loop: sign up for our free Time Out Asia newsletter for the best travel inspiration straight to your inbox.