A recent report from annual surveyor and the largest human resources consulting firm Mercer, revealed a report detailing the top 20 most expensive cities for expats. Asian cities dominated the list taking four spots in the top five and Hong Kong is sitting comfortably at the top.
The list was accumulated by looking at a variety of different factors including transportation, property, food, clothes, everyday necessities and entertainment services. By evaluating these different areas of life the study was able to conclude the average cost of living expats should expect to pay when moving to these cities.
The comparison looked at over 200 different cities where expats currently reside and showed that while US cities overall saw a drop-in ranking, both Asian and EU cities has climbed the tables compared to previous years.
The following Asian cities made the top 10. Hong Kong – 1st (China), Tokyo -2nd (Japan), Singapore – 4th, Seoul -5th (South Korea), Shanghai -7th (China) and Bejing -9th (China).
Many experts in Asian finance and economy have pointed to the value of Yuan being responsible for the increase in Chinese expenses. Although following the recent trade war with the USA, how accurate this remains is yet to be seen.
President of Mercer’s career business, llya Bonic said “With technology advances and the importance of a globally connected workforce, deploying talent remains a key component of a multinational’s business strategy.
“While a mobile workforce allows organisations to achieve greater efficiency, utilise top talent, and be cost effective with international projects, volatile markets and slowing economic growth in many parts of the world require them to carefully assess expatriate remuneration packages.
“Aligning workforce and mobility strategies by ensuring the right employees are in the right place is more critical than ever for multinationals as they focus on new global business models. And, properly compensating employees on international assignments is as important as it can be costly.”
Switzerland unsurprisingly also held a number of spots in the top 20. The country famous for it’s high prices ranked Zurich in 3rd, Bern -10th and Geneva -11th.
The UK – probably thanks to recent international trading relations and Brexit negotiations -saw a number of cities on the rise with London climbing ten spots to 19th place.