Hong Kong is one of the most expensive cities in the world to live in. Hundreds of studies confirm it and most residents believe it. Sometimes we even seem proud of it, shocking our family and friends overseas with the rents we pay and the cost of a car or round of drinks.

In studies conducted over the past few years by the Hong Kong government’s Economic Analysis Division and the Economist Intelligent Unit, Hong Kong consistently ranks in the top ten most expensive cities worldwide.

But what exactly makes the Hong Kong Special Administrative Region (HKSAR) such a costly place to live, and how do so many manage to cope with the expense?