Cape Town and Joburg among most expensive cities to live in as an expat

CAPE Town ranked 178th and Johannesburg 184th out of 209 cities globally, according to the latest study that ranks the most expensive cities to live in for overseas workers.

The 27th Mercer Cost of Living Survey showed that Cape Town has moved up nine places and Joburg eight places since its last report in 2020.

Hong Kong (China), which held the number one spot last year, has fallen into second position, making way for Ashgabat, the capital of Central Asia’s Turkmenistan as the most expensive city to live and work in for 2021.

Turkmenistan's financial crisis, which has led to food shortages and hyperinflation, is cited as the reason why Ashgabat’s cost of living has risen over the past couple of years.

Beirut (Lebanon) climbed up a massive 42 positions as a result of a severe and extensive economic depression due to an escalation of several crises – the country’s largest financial crisis, Covid-19 and the Port of Beirut explosion in 2020.

Tokyo (Japan), Zurich (Switzerland), Shanghai (China), Singapore, Geneva (Switzerland), Beijing (China), Bern in Switzerland ranked third to 10th, respectively.

Brasilia, Tunis, Tbilisi, Lusaka and Bishkek occupied the last five spots on the ranking list, making these cities the least expensive for expats.

The rankings demonstrate how currency fluctuation and shifts in the price of goods and services can affect the purchasing power of expatriate employees.

The survey includes more than 400 cities throughout the world; this year’s ranking includes 209 cities across five continents and measures the comparative cost of more than 200 items in each location.

And the biannual report is based on the comparative cost of expenses including housing, transportation, food, household goods, clothing and entertainment, with New York City (ranked 14th on the list) used as a baseline comparison and currency movements measured against the US dollar.