Mercer released it's latest annual 'Cost of Living' survey this month and Adelaide has fallen twenty five spots from it's 2013 ranking.
Sydney, currently ranked Australia’s most expensive city for expatriates, has dropped seventeen places from nine to twenty-six. Melbourne (33) dropped seventeen places, Perth (37) fell nineteen spots, Brisbane (52) and Canberra (53) dropped outside the top fifty after having both previously been inside the top thirty.
Garry Adams, Leader of Mercer’s Talent Business, Pacific said, “The results of our latest Cost of Living Index are promising for companies considering establishing headquarters in Australia or relocating expats.”
“The drop in rankings mean Australia becomes more attractive for global talent because ex-pats’ dollars will go further, it does not mean that Australian cities have become cheaper for Australians.
“Changes in the value of the Australian dollar against the US dollar are the primary reasons for the drop in our rankings,” said Mr Adams.
The strengthening of the Chinese yuan and currencies in Western Europe against the US dollar has also seen countries in these regions become more expensive, and drive Australian and New Zealand cities down the list.
“We know Australian cities are already a very attractive location for corporates due to our high quality of living, multicultural and multi-lingual workforce and Asian region time zone. The drop in costs means they become even more attractive as a location for global assignments. Companies will find it easier to justify using one of the major Australian cities as a headquarter for their Asia Pacific operations,” said Mr Adams.
“Compared to last year, where Sydney sat within the top 10 most expensive cities globally, we were looking at ensuring salaries adequately reflected the difference in cost of living to an employee’s home country in order to attract and retain talent. Now, we’re provided with a lot more flexibility in setting salaries and attracting employees from the global talent pool, knowing the expat dollar will go a lot further here,” he said.
Mercer's authoritative survey is one of the world’s most comprehensive, and is designed to help multinational companies and governments determine compensation allowances for their expatriate employees. New York is used as the base city, and all cities are compared against it. Currency movements are measured against the US dollar.
The survey covers 211 cities across five continents and measures the comparative cost of over 200 items in each location, including housing, transportation, food, clothing, household goods, and entertainment.
“Rankings in many regions were affected by recent world events, including economic and political upheavals, which resulted in currency fluctuations, cost inflation for goods and services, and volatility in accommodation prices,” said Ed Hannibal, Partner and Global Leader for Mercer’s Mobility practice.
Mercer Cost of Living Survey – Worldwide Rankings 2014
2013 2014 City Country 1 1 Luanda Angola 4 2 N'Djamena Chad 6 3 Hong Kong Hong Kong 5 4 Singapore Singapore 8 5 Zurich Switzerland 7 6 Geneva Switzerland 3 7 Tokyo Japan 9 8 Bern Switzerland 2 9 Moscow Russia 14 10 Shanghai China 15 11 Beijing China 25 12 London United Kingdom 22 13 Victoria Seychelles 13 14 Seoul South Korea 17 15 Copenhagen Denmark 24 16 New York City United States 29 17 Shenzhen China 32 18 Tel Aviv Israel 21 19 Libreville Gabon 33 20 Kinshasa Congo, Democratic Republic of 11 20 Oslo Norway 45 22 Nouméa New Caledonia 12 23 Osaka Japan 35 24 Guangzhou China 36 25 Lagos Nigeria 9 26 Sydney Australia 37 27 Paris France 40 28 Brazzaville Congo, Republic of 39 29 Bamako Mali 41 30 Milan Italy 44 31 Rome Italy 48 32 Vienna Austria 16 33 Melbourne Australia 46 34 Conakry Guinea 23 35 St. Petersburg Russia 49 36 Abuja Nigeria 18 37 Perth Australia 42 38 Stockholm Sweden 52 39 Amsterdam Netherlands 51 40 Dakar Senegal 26 40 Nagoya Japan 55 42 Helsinki Finland 38 43 Abidjan Cote d'Ivoire 46 44 Douala Cameroon 55 44 Yaoundé Cameroon 57 46 Baku Azerbaijan 69 47 Nanjing China 65 48 Qingdao China 19 49 Sao Paulo Brazil 67 50 Tianjin China 61 51 Dublin Ireland 28 52 Brisbane Australia 27 53 Canberra Australia 79 54 Shenyang China 81 55 Munich Germany 69 56 Brussels Belgium 77 56 Luxembourg Luxembourg 54 58 Auckland New Zealand 34 59 Adelaide Australia