Mercer's 25th annual Cost of Living Survey finds cities in Asia most expensive locations for employees working abroad
Multinationals' focus on mobility as a workforce strategy supports career growth and global competitiveness
Hong Kong remains the world's costliest city
Eight of the world's top 10 most expensive cities are in Asia
HONG KONG,June 27,2019 -- Eight of the world's top 10 most expensive cities are located in Asia as a result of the region's high costs for consumer goods and a dynamic housing market,according to Mercer's 25th annual 2019 Cost of Living Survey.
Hong Kong tops the list as the world's costliest city for the second consecutive year with the local housing market increasingly out of reach for many. Other cities appearing in the top 10 are Tokyo (2),Singapore (3),Seoul (4),Zurich (5),Shanghai (6),Ashgabat (7),Beijing (8),New York City (9),and Shenzhen (10). Ashgabat in Turkmenistan saw the biggest rise in rankings,jumping an astonishing 36 places from 43rd in 2018,as a result of the country's shortage of currency and imported goods driving up prices.
Mario Ferraro,Mercer's Global Mobility Practice Leader for Asia,Middle East and Africa,said Hong Kong's property prices weren't all to blame.
"While it's true that property costs are a key factor for Hong Kong's top ranking,the underlying reason is that there is still strong demand for accommodation suitable for expatriates to a standard they expect and in locations popular with expatriate communities," Mr Ferraro said.
"With Hong Kong's inflation having been relatively low in the year leading up to the survey,it's clear that the strengthening US dollar is also a major factor influencing the high costs in Hong Kong," he said.
China's yuan lost more than six per cent to the USD over the past year causing some Chinese cities to drop in ranking. Shanghai,however,rose one place due to price movement,as did Beijing with increasing rental prices. Shenzhen and Chengdu (30) rose two and one places respectively due to the movement of other cities in the ranking.
Mr Ferraro pointed out that Asia continued to be a major engine of global economic growth.
"Despite the relatively high cost of living,many organizations still see a strong business rationale for moving talent into and within the region. At the same time,cost considerations are still an issue,and we are seeing an increased focus on having a clear business case for the assignment,as well as measuring the return on investment," he said.
This year's ranking includes 209 cities across five continents and measures the comparative cost of more than 200 items in each location,including housing,transportation,food,clothing,household goods,and entertainment.
Of the world's major cities,the costs of movie tickets,coffee,property rental and petrol in Hong Kong were the most expensive,with Beijing topping the list for a price of milk at USD $4.45 in comparison to just USD $1.21 in New York.
Mercer's widely recognized 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 City is used as the base city for all comparisons,and currency movements are measured against the US dollar.
"In a skill-focused economy driven by digital disruption and the need for a globally connected workforce,deploying expatriate employees is an increasingly important aspect of a competitive business strategy for global companies," said Ilya Bonic,President of Mercer's Career business.
"There are numerous personal and organizational advantages for sending employees overseas,including career development,global experience,new skillsets,and re-allocation of resources. By offering fair and competitive compensation packages,organizations can facilitate moves that drive business results."
-ENDS-
Regional Breakdown
Asia Pacific
Eight of the top ten cities in this year's ranking are in Asia due in part to a strong housing market. Hong Kong (1) remains the most expensive city for expatriates both in Asia and globally as a result of the housing market and currency being pegged to the US dollar,driving up the cost of living locally.This global financial center is followed by Tokyo (2),and Ashgabat,Turkmenistan (7).
Mumbai (67) is India's most expensive city,followed by New Delhi (118) and Chennai (154). Bengaluru (179) and Kolkata (189) are the least expensive Indian cities ranked. Elsewhere in Asia,Bangkok (40) jumped twelve places from last year. Hanoi (112) and Jakarta (105) also rose in the ranking,up twenty-five and twelve spots,respectively. Bishkek (206) and Tashkent (208) remain the region's least expensive cities for expatriates.
Australian cities have continued to fall in the ranking due to the depreciation of the local currency against the US dollar. Sydney (50),Australia's most expensive ranked city for expatriates,dropped twenty-one places. Melbourne (79) and Perth (87) dropped twenty-one and twenty-six spots,respectively.
The Americas
Cities in the United States climbed in the ranking due to the strength of the US dollar against other major currencies as well as the significant drop of cities in other regions. New York jumped four places to rank 9,the highest-ranked city in the region. San Francisco (16) and Los Angeles (18) climbed twelve and seventeen places,respectively,while Chicago (37) jumped fourteen places. Among other major US cities,Washington,DC (42) is up fourteen places,Miami (44) is up sixteen places and Boston (49) is up twenty-one spots. Portland (107) and Winston Salem,North Carolina (138) remain the least expensive US cities surveyed for expatriates.
In South America,Montevideo,Uruguay (70) ranked as the costliest city followed by San Juan (72),which jumped twenty-three spots. Other cities in South America that climbed on the list of costliest cities for expatriates include Panama City (93),San Jose (131),and Havana (133) rising twenty-one,ten,and twenty-two spots,respectively. Cities that fell in the ranking despite price increases on goods and services and accommodation costs include Brazil and Argentina. In particular,São Paolo (86) dropped twenty-eight spots. Rio de Janeiro (121) dropped twenty-two places,while Buenos Aires (133) fell fifty-seven places. Managua (200) is the least expensive city in South America.
Although most Canadian cities remained stable in the ranking,the country's highest-ranked city,Vancouver (112),dropped three places. Toronto (115) dropped six spots,while Montreal (139) climbed eight spots. Calgary (153) and Ottawa (161) remained stable.
Europe,the Middle East,and Africa
Only one European city is among the top ten list of most expensive cities,which is Zurich at number five,followed by Bern (12). Geneva (13) is down two places. Eastern and Central European cities,including Moscow (27),St. Petersburg (75),Prague (97),and Warsaw (173),dropped ten,twenty-six,fourteen,and nineteen spots,respectively.
Cities in Western Europe,including Milan (45),Paris (47),Oslo (61),and Madrid (82),fell in the ranking as well,by twelve,thirteen,and eighteen spots,respectively. The German city Stuttgart (126) dropped significantly as did Berlin (81) and Dusseldorf (92). Cities in the United Kingdom saw modest drops,including Birmingham (135),which fell seven places,Belfast (158) six spots,and London (23) four spots.
"Despite moderate price increases in most of the European cities,European currencies have weakened against the US dollar,which pushed most cities down in the ranking," said Yvonne Traber,Global Mobility Product Solutions Leader at Mercer. "Additionally,other factors like recent security issues and concern about the economic outlook,have impacted the region."
Tel Aviv (15) continues to be the most expensive city in the Middle East for expatriates,followed by Dubai (21),Abu Dhabi (33),and Riyadh (35). Cairo (166) remains the least expensive city in the region. "Many currencies in the Middle East are pegged to the US dollar,which pushed cities up in the ranking,as well as steep increases for expatriate rental accommodations," said Ms. Traber.
Despite dropping from the top ten most expensive cities for expatriates,N'Djamena (11) remains the highest-ranking city in Africa. Following are Victoria (14) rising seven places,and Kinshasa (22) rising fifteen spots. Libreville (24) dropped six places. Dropping one spot,Tunis (209) in Tunisia ranks as the least expensive city in the region and globally.
Notes for editors
The figures for Mercer's cost of living and rental accommodation cost comparisons are derived from a survey conducted in March 2019. Exchange rates from that time and Mercer's international basket of goods and services from its Cost of Living Survey have been used as base measurements.
Governments and major companies use data from this survey to protect the purchasing power of their employees when transferred abroad; rental accommodation costs data is used to assess local expatriate housing allowances.The choice of cities surveyed is based on demand for data.
Mercer produces individual cost of living and rental accommodation cost reports for each city surveyed. For more information on city rankings,visit https://mobilityexchange.mercer.com/Insights/cost-of-living-rankings. To purchase copies of individual city reports,visit https://mobilityexchange.mercer.com/multinational-approach-cost-of-living-dataor call Mercer Client Services at +48 22 434 5383.
About Mercer
Mercerdelivers advice and technology-driven solutions that help organizations meet the health,wealth and career needs of a changing workforce. Mercer's more than 23,000 employees are based in 44 countries and the firm operates in over 130 countries. Mercer is a wholly owned subsidiary of Marsh & McLennan Companies(NYSE: MMC),the leading global professional services firm in the areas of risk,strategy and people. With 75,000 colleagues and annualized revenue approaching $17 billion,through its market-leading companies including Marsh,Guy Carpenterand Oliver Wyman,Marsh & McLennan helps clients navigate an increasingly dynamic and complex environment. For more information,visit www.mercer.com.hk. Follow Mercer on Twitter @Mercer.
Mercer also provides advice and market data on international and expatriate compensation management,and works with multinational companies and governments worldwide. It maintains one of the most comprehensive databases on international assignment policies; compensation practices; and data on worldwide cost of living,housing,and hardship allowances. Its annual global mobility conferences and other events provide companies with the latest trends and research on mobility issues. Visit https://mobilityexchange.mercer.com/ for details. Follow Mercer's mobility news on Twitter @Mercer.
Mercer Cost of Living Survey – Worldwide Rankings 2019
(Mercer international basket,including rental accommodation costs)
Rank as of March
City
Country/Region
2018
2019
1
1
HONG KONG
Hong Kong (SAR)
2
2
TOKYO
Japan
4
3
SINGAPORE
Singapore
5
4
SEOUL
South Korea
3
5
ZURICH
Switzerland
7
6
SHANGHAI
Mainland China
43
7
ASHGABAT
Turkmenistan
9
8
BEIJING
Mainland China
13
9
NEW YORK CITY
United States
12
10
SHENZHEN
Mainland China
8
11
NDJAMENA
Chad
10
12
BERN
Switzerland
11
13
GENEVA
Switzerland
21
14
VICTORIA
Seychelles
16
15
TEL AVIV
Israel
28
16
SAN FRANCISCO
United States
15
17
GUANGZHOU
Mainland China
35
18
LOS ANGELES
United States
23
19
OSAKA
Japan
14
20
COPENHAGEN
Denmark
26
21
DUBAI
United Arab Emirates
37
22
KINSHASA
Dem. Rep. of the Congo
19
23
LONDON
United Kingdom
18
24
LIBREVILLE
Gabon
42
25
LAGOS
Nigeria
6
26
LUANDA
Angola
17
27
MOSCOW
Russia
25
27
NANJING
Mainland China
22
29
NOUMEA
New Caledonia
24
30
ABIDJAN
Côte d'Ivoire
31
30
CHENGDU
Mainland China
29
32
TIANJIN
Mainland China
40
33
ABU DHABI
United Arab Emirates
41
33
NAGOYA
Japan
27
35
TAIPEI
Taiwan
45
35
RIYADH
Saudi Arabia
51
37
CHICAGO
United States
54
38
HONOLULU
United States
19
39
BRAZZAVILLE
Congo
52
40
BANGKOK
Thailand
36
41
QINGDAO
Mainland China
56
42
WASHINGTON
United States
32
43
DUBLIN
Ireland
60
44
MIAMI
United States
33
45
MILAN
Italy
38
45
SHENYANG
Mainland China
34
47
PARIS
France
66
47
DHAKA
Bangladesh
70
49
BOSTON
United States
29
50
SYDNEY
Australia
39
51
VIENNA
Austria
43
52
YAOUNDE
Cameroon
65
53
BEIRUT
Lebanon
48
54
BANGUI
Central African Republic
46
55
ROME
Italy
79
56
WHITE PLAINS
United States
77
57
MANAMA
Bahrain
50
58
AMSTERDAM
Netherlands
73
59
DJIBOUTI
Djibouti
86
59
HOUSTON
United States
47
61
OSLO
Norway
85
62
DALLAS
United States
63
63
ACCRA
Ghana
90
64
SEATTLE
United States
53
65
HELSINKI
Finland
73
66
DOUALA
Cameroon
55
67
MUMBAI
India
57
67
MUNICH
Germany
95
69
ATLANTA
United States
75
70
MONTEVIDEO
Uruguay
97
70
MORRISTOWN
United States
62
72
DAKAR
Senegal
95
72
SAN JUAN
Puerto Rico
68
74
FRANKFURT
Germany
49
75
ST. PETERSBURG
Russia
94
75
AMMAN
Jordan
67
77
BRUSSELS
Belgium
102
78
MINNEAPOLIS
United States
58
79
MELBOURNE
Australia
69
79
SANTIAGO
Chile
71
81
BERLIN
Germany
64
82
MADRID
Spain
97
83
PORT OF SPAIN
Trinidad & Tobago
71
84
LUXEMBOURG
Luxembourg
99
85
ABUJA
Nigeria
58
86
SAO PAULO
Brazil
61
87
PERTH
Australia
106
88
CONAKRY
Guinea
81
89
AUCKLAND
New Zealand
116
90
DETROIT
United States
79
91
BARCELONA
Spain
82
92
DUSSELDORF
Germany
114
93
PANAMA CITY
Panama
122
94
ST. LOUIS
United States
93
95
LISBON
Portugal
77
96
CANBERRA
Australia
83
97
PRAGUE
Czech Republic
123
97
NAIROBI
Kenya
125
97
PITTSBURGH
United States
88
100
HAMBURG
Germany
117
100
JEDDAH
Saudi Arabia
106
102
BANDAR SERI BEGAWAN
Brunei
84
103
BRISBANE
Australia
117
103
MUSCAT
Oman
117
105
JAKARTA
Indonesia
125
106
CLEVELAND
United States
130
107
PORTLAND
United States
142
108
PHNOM PENH
Cambodia
87
109
ADELAIDE
Australia
138
109
MANILA
Philippines
92
111
RIGA
Latvia
109
112
VANCOUVER
Canada
137
112
HANOI
Vietnam
101
114
WELLINGTON
New Zealand
109
115
TORONTO
Canada
115
115
DOHA
Qatar
91
117
YANGON
Myanmar
103
118
NEW DELHI
India
121
119
KUWAIT CITY
Kuwait
124
120
HO CHI MINH CITY
Vietnam
99
121
RIO DE JANEIRO
Brazil
132
121
LIMA
Peru
105
123
LYON
France
120
124
BAMAKO
Mali
104
125
POINTE A PITRE
Guadeloupe
108
126
STUTTGART
Germany
89
127
STOCKHOLM
Sweden
111
128
COTONOU
Benin
112
128
ATHENS
Greece
128
128
CASABLANCA
Morocco
113
131
BRATISLAVA
Slovakia
141
131
SAN JOSE
Costa Rica
76
133
BUENOS AIRES
Argentina
165
133
HAVANA
Cuba
128
135
BIRMINGHAM
United Kingdom
130
136
GUATEMALA CITY
Guatemala
134
137
ABERDEEN
United Kingdom
161
138
WINSTON SALEM
United States
147
139
MONTREAL
Canada
140
140
TALLINN
Estonia
145
141
KUALA LUMPUR
Malaysia
132
142
LJUBLJANA
Slovenia
138
143
ZAGREB
Croatia
157
144
MEXICO CITY
Mexico
134
145
LOME
Togo
134
145
OUAGADOUGOU
Burkina Faso
148
145
GLASGOW
United Kingdom
156
148
QUITO
Ecuador
143
149
NIAMEY
Niger
173
150
KIEV
Ukraine
145
151
NUREMBERG
Germany
148
152
VILNIUS
Lithuania
154
153
CALGARY
Canada
144
154
CHENNAI
India
163
154
ISTANBUL
Turkey
150
156
LEIPZIG
Germany
164
157
KINGSTON
Jamaica
152
158
BELFAST
United Kingdom
179
159
MAPUTO
Mozambique
165
160
RABAT
Morocco
153
161
LIMASSOL
Cyprus
160
161
OTTAWA
Canada
161
161
PORT LOUIS
Mauritius
151
164
BUDAPEST
Hungary
125
165
PORT AU PRINCE
Haiti
172
166
TIRANA
Albania
174
166
SAN SALVADOR
El Salvador
188
166
CAIRO
Egypt
178
169
SANTO DOMINGO
Dominican Republic
168
170
BOGOTA
Colombia
180
171
DAR ES SALAAM
Tanzania
183
171
ADDIS ABABA
Ethiopia
154
173
WARSAW
Poland
158
174
BRASILIA
Brazil
169
175
KIGALI
Rwanda
176
176
BUCHAREST
Romania
175
177
SOFIA
Bulgaria
186
178
BAKU
Azerbaijan
170
179
BENGALURU
India
170
180
CAPE TOWN
South Africa
181
181
BELGRADE
Serbia
158
182
COLOMBO
Sri Lanka
192
183
KAMPALA
Uganda
195
184
ALGIERS
Algeria
177
185
JOHANNESBURG
South Africa
183
186
ASUNCION
Paraguay
193
187
MONTERREY
Mexico
165
188
HARARE
Zimbabwe
182
189
KOLKATA
India
189
189
GABORONE
Botswana
187
191
ALMATY
Kazakhstan
194
192
NOUAKCHOTT
Mauritania
204
193
BLANTYRE
Malawi
191
194
SARAJEVO
Bosnia and Herzegovina
199
195
LA PAZ
Bolivia
185
196
LUSAKA
Zambia
198
197
YEREVAN
Armenia
202
198
MINSK
Belarus
201
199
TEGUCIGALPA
Honduras
200
200
MANAGUA
Nicaragua
197
201
SKOPJE
Macedonia
203
202
TBILISI
Georgia
190
203
ISLAMABAD
Pakistan
196
204
WINDHOEK
Namibia
206
204
BANJUL
Gambia
207
206
BISHKEK
Kyrgyzstan
205
207
KARACHI
Pakistan
209
208
TASHKENT
Uzbekistan
208
209
TUNIS
Tunisia
Source: Mercer's 2019 Cost of Living Survey
