WORKOUT Sydney in dearest list for postings
SYDNEY is the 21st most expensive city for international companies when posting staff overseas, and of Australia’s cities it is the costliest, says a Mercer survey of 143 cities.
Using New York as a base of 100, Sydney scores 94.9 when considering cost-of-living factors such as housing, food, clothing, household good and entertainment.
Mercer says it is acknowledged as the world’s most comprehensive cost of living survey. Global companies and governments use it when estimating allowances for expatriate employees.
The most expensive city in the world is Moscow, with an index reading of 134.4, followed by London (126.3), Seoul (122.4), Tokyo (122.1) and Hong Kong (119.4) in the top five spots. European cities dominate the list overall. The least expensive, occupying 143rd place, is Asuncion, Paraguay (50).
Other Australian cities in the list are Melbourne (60th place, index score of 82.5), Brisbane (86th, index score 77.8), and Adelaide (96th, index score 74.7).
The increasing value of the Australian dollar may have contributed to the cost of living in these cities, says Rob Knox, principal at Mercer.
‘‘ The resource rich states of Western Australia and Queensland, in particular, have experienced increased demand for goods and services through the influx of both people and capital contributing to upward pressure on costs in Brisbane and Perth,’’ Knox says. ‘‘ Other factors likely to be driving demand and increasing costs pressures include a positive employment outlook and healthy economy.
‘‘ But it’s important to keep this in perspective. Australian cities remain very competitive from a cost point of view, coupled with favourable quality of living metrics, ensuring Australia will continue to be well-placed to attract investment from overseas.’’
In contrast to Australian cities, those in North America have benefited from a falling currency. Only New York and Los Angeles (42nd place, index score 87.1) gain a place in the top 50 cities.
‘‘ The decline of most US cities in the rankings can be attributed to the depreciation of the US dollar against the euro and other major currencies worldwide,’’ says Mercer principal Rebecca Powers.
‘‘ The change reflects a reversal of the situation experienced this time last year, when the majority of US cities climbed the rankings due to the strength of the dollar.’’