25 Jul 2013

African and European cities 'most expensive'

9:34 am on 25 July 2013

A survey shows African and European cities are the most expensive places to live in the world for expatriates.

Mercer's 2013 Cost of Living Survey is designed to help multinational companies and governments determine compensation allowances for their expatriate employees.

The survey covers 214 cities across five continents and measures the comparative cost of more than 200 items in each location, including housing, transportation and food.

The BBC reports the most expensive city for expatriates is the Angolan capital Luanda where accommodation costs are high and it's expensive to import goods.

Moscow is the second most expensive city to live in, the survey says. A coffee in the Russian capital will cost as much as $US8.29.

Tokyo is third, due to high property and transport costs.

Sydney is 9th on the list and is the most expensive city in the Pacific due to rising demand for rental accommodation. Mercer says New Zealand is more affordable for expatriates.