Hong Kong has topped an annual expat cost of living index published by recruitment consultants and professional services provider Mercer.
The special administrative region of China is closely followed by Tokyo, Zurich and Singapore.
Ilya Bonic, president of Mercer’s career business, said: “While a mobile workforce allows organisations to achieve greater efficiency, utilise top talent, and be cost effective with international projects, volatile markets and slowing economic growth in many parts of the world require them to carefully assess expatriate remuneration packages.”
Mercer’s survey is designed to help multinational companies and governments determine compensation strategies for their expatriate employees. New York City is used as the base city for all comparisons, and currency movements are measured against the US dollar.
Last year’s chart topper Luanda, in Angola, came off the top spot after its housing market fell back.
Other cities appearing in the top 10 of Mercer’s costliest cities for expatriates are Seoul, Luanda, Shanghai, N’Djamena, Beijing, and Bern.
The world’s least expensive cities for expatriates are Tashkent, Uzbekistan (209th), Tunis, Tunisia (208th), and Bishkek, Kyrgyzstan (207th).
Asia ascendant
A strong Chinese economy and push to reinforce regulations, coupled with Beijing’s efforts to position the Renminbi as an international currency, have all contributed to Hong Kong’s ascendance this year.
Mumbai is India’s most expensive city at 55, while Kolkata is the cheapest in 182nd place.
Australian expat centres Brisbane and Perth fell 13 and 11 spots, respectively, to rank 84th and 61st.
Sydney, the country’s most expensive city, fell five places to 29th.
Europe
Switzerland is the best represented European nation in the upper echelons of Mercer’s rankings with Geneva ranking just outside the top 10 behind Zurich and Bern.
Overall, Western European cities have all risen in the rankings, a result of strong local currencies against the US dollar and the rising cost of goods and services.
Cities in Germany experienced some of this year’s biggest surges in the ranking:
- Frankfurt rose 49 spots to 68th;
- Berlin was also up 49 places to 71st;
- Munich climbed 41 rungs to 57th.
In the UK:
- Birmingham went up 19 places from last year to 128th;
- Belfast jumped 18 spots to 152nd;
- Aberdeen climbed 12 places to 134th;
- London jumped 10 spots to rank 19th.
Other major European cities ranked:
- Paris made it to 34th, up 28 places from last year;
- Rome shot up 34 spots to reach 46th;
- Madrid jumped 47 places to reach 64th;
- Vienna rose 39 places to rank 39th.
Middle East
A cooling property market in the Middle East contributed to more affordable lifestyles across the region compared to 2017.
Tel Aviv, ranked 16th, continues to be the most expensive city in the Middle East for expatriates, followed by Dubai (26th), Abu Dhabi (40th), and Riyadh (45th).
Why Luanda?
Oil rich Luanda is still Africa’s most expensive city for expats, having first topped the rankings in 2015.
N’Djamena, Chad ranked eighth; Libreville, Gabon is 18th; followed by Brazzaville, Congo at 19th.
According to the World Economic Forum, the high cost of living in Luanda is not reflected for locals.
For example, having emerged from a 30-year civil war in 2002, quality expat-style housing is still in short supply.
However, since 2002, Luanda has boomed with oil corporations offering bumper cost-of-living allowances to entice workers to Angola.
