8 July 2009

Auckland and Wellington represent value for money when it comes to the cost of living.  The two cities ranked 138th and 139th respectively out of 143 cities in the 2009 Mercer Worldwide Cost of Living Survey carried out in March.

Mercer’s Worldwide Cost of Living survey compares the cost of housing, transport, food and other goods, and is used an indicator for compensation for companies who send their employees abroad

Auckland’s ranking fell to 138th place from 78th a year earlier, with a cost of living index of 54 compared to 81 in March 2008.  The index is based on a figure of 100 for New York.

Wellington’s ranking also decreased notably to 139th from 93rd in 2008; with its index figure falling from 77.6 to 52.3.

Fluctuations in worldwide exchange markets during the economic downturn saw major reshuffles in the rankings.  According to Mercer spokesman Rob Knox New Zealand has become more affordable with the value of the NZD falling against the USD; in March its value had depreciated by more than 33 per cent from a year earlier.

“New Zealand cities were extremely cost competitive destinations for global workers compared to cities such as Beijing, Hong Kong, Tokyo and Osaka, which all climbed in the rankings this year.
“This helps makes New Zealand a very attractive hub for companies looking to grow their presence in the Asia Pacific region.”

Also in New Zealand’s favour is the quality of living of its two major cities which ranked highly in the 2009 Mercer Quality of Living Survey; with Auckland in 4th place and Wellington in 12th.

The affordability and standard of living in New Zealand are both positive for strengthening New Zealand’s business prospects.  With economic growth in the Asia-Pacific region outstripping most parts of the world, New Zealand presents an economically viable place for multinationals to establish themselves in this growing market.