Auckland, Wellington jump up global cost-of-living list

By REBECCA WALSH

Auckland and Wellington are fast becoming more expensive to live in but are still among the cheapest cities by world standards, says a cost-of-living survey.

The two cities moved 25 places up the table from last year and are now at positions 115 and 117, according to the survey by international consultants Mercer Human Resources Consulting.

But living across the Tasman would cost more. Sydney was rated 67th - the only Australian city in the world's 100 most expensive cities - and Melbourne 111.

The most expensive city in the world was Tokyo, followed by Moscow and then Osaka, in Japan. London was the seventh most costly city, and New York City came in at number 10. The cheapest city was Asuncion in Paraguay, where it was almost 3 1/2 times cheaper to live than Tokyo.

Chris O'Brien, an associate in Mercer's Human Capital Practice in Auckland, said the survey looked at 144 cities and measured the cost of more than 200 items in each location, from housing, food, clothing and household goods to transportation and entertainment.

The information was used to help multinational companies determine compensation allowances for their expatriate workers.

The Minister for Auckland Issues, Judith Tizard, believed the main driver behind Auckland's jump up the rankings was the cost of housing.

"The tiny house next to me in Ponsonby, a little four-roomed house with primitive amenities, recently sold for over $500,000."

Ms Tizard said the price of cars and fuel continued to be competitive. People could choose to spend a "fortune or relatively little" on clothes.

Likewise, they could choose whether to eat out at the city's many restaurants and cafes. "If you look internationally, New Zealand is still a very desirable place to live."

Mr O'Brien said the survey showed that the cost of living in cities of the Asia-Pacific region varied significantly. "Globally, New Zealand and Australian cities remain relatively cheap. However, the survey indicates that of the world's 20 most expensive cities, 10 are located in Asia."

The results showed the gap between the cheapest and most expensive cities continued to narrow.

Although cities in NZ and Australia had become more expensive, they still rated among the highest in terms of quality of life, Mr O'Brien said.

In March the Herald reported Auckland was ranked fifth in the world, up from sixth place the previous year. Wellington was ranked 15th overall.

The quality-of-life survey was based on 39 criteria ranging from political, social and economic factors, including the quality of health, education and transport services.