Cost of Living in Beijing
London (17) and Paris (17), according to Mercer's 2010 Cost of Living Survey.In short, despite the fact that living in China is generally more affordable than in comparable economic powerhouses, Beijing is not a cheap, especially for those expats who demand a certain standard of comfort and luxury. Furthermore, with so many opportunities for exploration and entertainment, it can often feel like there's rarely ever "enough" money to live the life you imagine for yourself in this city.
That said, if expats can get a handle on their consumerism, and can avoid paying the grossly inflated prices associated with western-style goods and services, it's easy to live well and to save. Many expats are beckoned to Beijing by lucrative salary packages, and in this case, expenses will not be a concern.
Cost of Housing in Beijing
An expat’s largest expense in Beijing will be housing. Property prices in Beijing have been increasing continuously for the last eight years; and foreigners will find that both buying and renting accommodation in Beijing can cost a huge amount of money.
As a general rule, the closer the accommodation is to the city centre, the more expensive it tends to be. So if housing is proving too pricey, move more toward the periphery. Beijing is organised according to ring roads, where the first ring road is closest to the city centre.
Both furnished and unfurnished accommodation are available in Beijing, and the former will be more expensive.
Most flats in Beijing come in apartment form, and are not incredibly spacious.
Estimated housing costs in Beijing
- Purchase a 2BDR apt. between 4th and 5th Ring Road ~ 3,000,000 CNY
- Rent a 2BDR apt. between 4th and 5th Ring Road ~ 5000 CNY
- Rent a 2BDR apt. between 2nd and 3rd Ring Road ~ 10,000 CNY
- Rent a villa or a luxury 2BDR apt. in city centre ~ 18,000+ CNY
Estimated utility costs
- Electricity for a 2BDR apt. ~ 500 CNY
- Water for a 2BDR apt. ~ 80 CNY
Cost of schooling in Beijing
For those expat parents who plan to bring their little ones across, anticipate paying some hefty school fees. Most foreigners
prefer to enrol their children in one of the international schools, and tuition in these institutions can rival that of a college back home. Fees can be as much as 120,000 CNY per year, and vary according to the school and the age of the child.Try and negotiate some sort of education allowance in your contract, otherwise, consider homsechooling or any one of the private bilingual Chinese schools (~20,000 CNY) as alternatives.
Cost of food in Beijing
Despite the high cost of housing and school, food is relatively cheap in Beijing, even good quality food. Of course, there are a lot of fancy places that can wear your wallet thin, but a meal in a decent restaurant for four people could cost as little as 200 CNY.
If you are brave enough, often the best and cheapest food comes from backstreet restaurants; and often eating out can be less expensive than cooking at home. That said, if you enjoy making a meal in your own kitchen, buying groceries in the fresh market and whipping up something special can cost you next to nothing. Almost anywhere in the world, Chinese food is very reasonably priced.
For example, a kilo of fresh tomatoes costs 5 CNY and a kilo of minced beef costs 35 CNY.
For those expats who rely on western food and rarely eat Chinese, the cost of food will be significantly higher. Many items considered staples in a western diet do not exist in Chinese eating, like cheese and bread. These types of items will only be available at international supermarkets, like Jenny Lou's, targeting expats. For example, cheese costs around 30 CNY per kilo and cereal, a quintessential non-Chinese product, can be as much as 50 CNY.
Expats do not need to tip in China. Waitresses and waiters receive a monthly salary and are not allowed to take tips.
Cost of communication in Beijing
Internet in Beijing is also cheap. The cost of using broadband at home for a whole year is about 900 CNY.
It’s cheap to make local phone calls. China Mobile and China Unicom are the top two mobile service providers. Local phone calls cost about 60 cents per minute; the price can be even cheaper depending on which bundle you choose. International phone calls cost a lot more.
Cost of transport in Beijing
Whether you are a millionaire in charge of a huge company, or an ordinary worker that struggles to get by, one “cost” you can’t avoid - be sure to prepare yourself – is that of Beijing traffic. There’s no “rush hour”, there’s only “rush day”. It’s the biggest headache for those who commute to work by car and a nightmare for those that have to use public transportation.
Travelling by car is not a wise solution because it’s always difficult to find parking; you easily get fined due to so many complicated and confusing traffic rules; and when you get stuck in traffic, you get stuck. Furthermore, the cost of leasing a mid-range vehicle, paying for petrol and hiring a driver can add up to a second rent.Leased VW Passat with driver (no petrol) ~ 10,000 CNY per month
It’s better to use taxis instead, as you can get off and choose subways when the traffic jam gets too hectic. Not to mention, a Beijing taxi rate is very reasonable. A short 15 minute drive costs about 20 CNY. The rate from the airport to the city centre is around 100 CNY.
Public transportation is even cheaper. Bus tickets average 1 CNY, and a subway ticket cost 2 CNY for however many routes.
Expats should plan to budget between 200 and 300 CNY per month for transportation, if you decide not to use a car.
To take public transportation or to use taxis there is no big need to learn to speak Mandarin. Expats should rather learn basic practical phrases and sayings, for example, “where is the taxi?” (qing wen chu zu che zai na li); “where is the toilet”(qing wen ce suo zai na li)… and so on.
