Mercer compared the cost of more than 200 items in cities around the world. The study also found that eight of the 10 most expensive cities are in Asia. Hong Kong topped the list in 2019 (for the second year in a row), while Tokyo, Singapore, Seoul and Zurich rounded out the top five.
Top 10 most expensive cities for expats:
- Hong Kong
- Tokyo, Japan
- Singapore
- Seoul, South Korea
- Zurich, Switzerland
- Shanghai, China
- Ashgabat, Turkmenistan
- Beijing, China
- New York, USA
- Shenzhen, China
Hong Kong
Also according to Mercer statistics, the cheapest cities for expats in 2019 were Tunis in Tunisia, Tashkent in Uzbekistan and Karachi in Pakistan.
10 cheapest cities for expats:
- Tunis, Tunisia
- Tashkent, Uzbekistan
- Karachi, Pakistan
- Bishkek, Kyrgyzstan
- Banjul, Gambia
- Windhoek, Namibia
- Islamabad, Pakistan
- Tbilisi, Georgia
- Skopje, Macedonia
- Managua, Nicaragua
Tunis, Tunisia
According to Mercer, the main reason why Hong Kong in particular and Asian cities in general are becoming expensive is because the real estate market in this region is thriving. High demand and low supply have pushed real estate prices in Hong Kong to uncontrollable levels in recent years. The Hong Kong government is planning to build an $80 billion artificial island to overcome this situation. Mercer also noted that the Hong Kong dollar's peg to the USD also increases the cost of living here. Vietnam has two cities evaluated, Hanoi and Ho Chi Minh City. Globally, Hanoi ranked 112th in terms of expensiveness, up 25 places compared to 2019. The cost of living in Ho Chi Minh City increased 4 places, to 120.
The categories analyzed in Mercer’s report range from alcohol, clothing and food to entertainment and housing. A typical McDonald’s Big Mac is most expensive in Zurich, Switzerland, at nearly $15. Hong Kong is the most expensive place for consumers to buy petrol or a cup of coffee at a fancy cafe, while Londoners pay the most for cinema tickets.
The report also analyzed how the cost of living has changed in recent years. In eight of the 17 Chinese cities surveyed, the price of an international beer brand increased between 2014 and 2019. A night out in China – which includes two movie tickets, a steak dinner for two and two cups of coffee – increased from $136 in 2009 to $163 in 2019. Meanwhile, in Mexico City, the cost of a night out increased by more than 40% year-on-year. Specifically, a date night would cost $90 in the Mexican capital in 2019.
New York, USA
US cities rose in 2019 due to the strong US dollar. New York, the North American hub, rose four places to be named the ninth most expensive city for expats. This year, San Francisco, ranked 16th, jumped 12 places from 2018, while Los Angeles, ranked 18th, climbed 17 places from the same time last year. Washington, DC, Miami and Boston rounded out the top 50 most expensive cities. Meanwhile, Portland, Oregon and Winston Salem, North Carolina, were the cheapest cities in the US for expats.
Elsewhere, Dubai was named the 21st most expensive city in the world, while London was ranked 23rd. Mumbai was India's most expensive city, while Sydney took the top spot in Australia.
In South America, Brazilian cities Sao Paolo and Rio de Janeiro both fell 22 places in the rankings. Canadian cities remained stable, with Vancouver, Canada's most expensive city, ranked 112th in the world.
