Tokyo: 'Most Expensive Expat City'

According to the data/surveying firm Mercer, Tokyo and Osaka, Japan surpassed Moscow in 2009 as the most expensive city in the world for expats, due to a strengthening of the yen in relation to other global currencies during the economic downturn. According to Mercer's 2009 report:

Mercer's Cost of Living survey covers 143 cities across six continents and measures the comparative cost of over 200 items in each location, including housing, transport, food, clothing, household goods and entertainment. It is the world's most comprehensive cost of living survey and is used to help multinational companies and governments determine compensation allowance for their expatriate employees.

In Mercer's survey, New York is used as the base city for the index and scores 100 points, all cities are compared against New York and currency movements are measured against the US dollar. Tokyo scores 143.7 points and is nearly three times as costly as Johannesburg with an index score of 49.6.

According to the new rankings, Tokyo is the single most expensive city overall, followed by Osaka, Japan; Moscow, Russia; Geneva, Switzerland; and Hong Kong, Hong Kong.

The report measured a relatively low rate of global inflation so far during the recession, coupled with low oil prices and a general stabilization of the costs of "basic items" across the board.

Most significantly, however, is stark fluctuations in currencies towards the end of 2008 and continuing into 2009, whereby the Euro weakened significantly in relation to the dollar and the yen. According to the BBC, who reported on Mercer's findings:

Currency fluctuations as a direct result of the economic downturn had led to a "significant reshuffle" in this year's rankings, said Nathalie Constantin-Métral, a senior researcher at Mercer.

And she said that as firms looked to control costs, keeping track of the factors that dictated the cost of living for staff it sent overseas was "essential".

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Comments

[pushrodgraveyard]

These surveys should be taken with a grain of salt. Notice that it measures costs for expatriate employees, who are given lavish living quarters in high rent districts, cars, and private school education for their children, on top of their (already generous) salaries. And the $8 cup of coffee in Tokyo is misleading- it may cost that at a top class hotel lobby cafe (where only fools or the well-heeled drink their java), but at the ubiquitous station and corner cafes, it's a reasonable $1.80. Costs are much lower for the general population, and expatriates willing to live more like the locals.

[Eusebio]

You can't beat Madrid and Barca as far as I'm concerned. Unfortunately the Euro is fairly strong at the moment, but it's still a great value. I live less than a mile from the park El Retiro in the middle of Madrid and my rent is probably equivalent to what most people pay for their car payments plus insurance. Top quality women, weather, wine, food, culture and futbol.

[davidwayneosedach]

I'll take London any day.

[Jaywalkker]

Are Ramen noodles a student staple in Osaka/Tokyo?

[email]

I thought Bombay (Mumbai) was expensive.

[kinkistyle]

Ridiculous. I used to live on $30-40 a week while living in Osaka. You just gotta go to where the super-cheap supermarkets are. They sometimes sell tofu for 1 yen a pack (1 cent).

[freethinking moderate]

Exactly. But if more Ameircans knew just how cheap it was to live in Osaka, they might decide to live there too. I like the idea of Japan being too expensive a place to live. Those of us in the know know better and how to enjoy life there - income tax free (and totally legal). :)