Is Singapore expensive compared to Australia?

If you’re an Australian planning a trip to Singapore and wondering is Singapore expensive, the short answer is yes — Singapore is generally more expensive than Australia. But it also depends on your lifestyle, and how much you’re good with your budget, it all depends on your pocket. Here we will discuss all the expenses of Singapore and the reasons why Singapore is expensive.

Why Singapore is so expensive?

There are many reasons why Singapore is so expensive, that as follows:

1. Limited land area

If we are talking about the reasons, one of the biggest reasons is limited land. Because Singapore is not a big country so there is limited land area. If we want to buy a one-bedroom apartment in the city centre can cost SGD 3,625 per month. If foreigners come here to live and want to stay here permanently, it would be costly for them.

2. High demand for housing 

Many people want to live and work in Singapore. Many people like skilled locals, wealthy expats, plus international investors. When demand is high and limited supply then it becomes expensive housing.

3. Strict car ownership rules

Cars are extremely expensive in Singapore compared to Australia. Because you must buy a Certificate of Entitlement (COE) just to own a car. Import taxes on cars are very high and road taxes and petrol costs are very expensive. The government does this to control traffic and pollution but it makes owning a car a luxury item for people.

4. Dependence on imports

Singapore is heavily dependent on imports, including everything:

• Food
• Fuel
• Construction material
• Consumer goods

Since the country produces very little locally, imported goods come with higher costs due to:

• Shipping
• Storage
• Taxes

These things make groceries, electronics and lifestyle more expensive than in many other countries.

5. High standard of living

Singapore is extremely expensive, safe, clean and has strict rules and regulations. Singapore is clean because of its strict rules and laws. The Government of Singapore make strict rules to keep its country. World-class public transport in Singapore, excellent healthcare system, strong law enforcement, safe streets, this high quality of life adds to the overall cost of living.

6. Strong economy and high wages

Singapore has a very strong economy and its industries pay high salaries. Because people earn more money so they can manage their lifestyle. Also, businesses charge more, services cost more, restaurants, gyms and entertainment are priced higher and high local wages naturally push up everyday prices.

7. Expensive private schooling and healthcare

While public systems are limited, private options would be very expensive. Private school international schools, healthcare services can cost a lot, especially for foreigners and from rich, higher-income families.

8. High taxes on luxury goods 

Singapore applies heavy taxes on luxury items like:

• Alcohol
• Cigarettes
• Designer fashion

If you want to enjoy luxury lifestyle products, expenses rise quickly.

9. Business and office costs are high

Running a business in Singapore would be expensive due to costs like:

• High commercial rent
• High wages 
• Licensing fees

These expenses are customers should be passed through higher product and service prices.

10. Tourism and expat lifestyle influence prices

Singapore is a beautiful place for visitors. We can say that Singapore is a hub for 

• Business travel
• Expat living 

Luxury restaurants, rooftop bars and malls are common, which raises the average cost of living.

11. Government policies

Singapore usually uses economic policies so it can follow the policies and maintain stability but sometimes this can cause consumer prices to rise. For example, sometimes taxes on alcohol and cigarettes and cars are intentionally high so can focus on social issues. Public and private sectors prioritise quality, which comes with higher fees. These things and policies make Singapore safe but increase financial cost.

Why does Australia feel Singapore is expensive? 

Australians sometimes compare Singapore to Southeast Asia travel destinations or expect prices similar to Australia, but in reality:

• Some regular items like groceries, eating out and rent are more expensive than in Sydney or Melbourne.
• Alcohol, especially beer and spirits, is far expensive than in Australia due to taxes.
• Residential costs during travel feel much higher if we compare them to Bali, Thailand or Vietnam.

However, public transport, local hawker food and basic services are often cheaper than what Australians pay at home.

Conclusion

Singapore is expensive because of many reasons like, limited land, import reliance, government choices that impose taxes on everything and controlled car ownership. And economic factors like high wages, strong currency and lifestyle standards, world-class infrastructure and premium services.

But after all, Singapore remains extremely famous because it offers:

• Unmatched safety 
• Cleanliness
• Convenience
• Best transport 
• Modern living 

People pay more and they get more; this balance makes Singapore special. And that is the specialty of Singapore. That is why most people want to settle there.