A recent survey by USB has identified Sydney as number seven in the list of the world’s most expensive cities in the world . The strong Australian dollar has undoubtedly contributed to Sydney coming in ahead of many other larger cities such as London and New York.
Two years previously Sydney was a lot lower on the same list – at number 38.
The survey found that it is now cheaper to live in international hubs like London and New York than Sydney. This finding is not a complete surprise to Sydneysiders who experience Sydneys high cost of living and especially high cost of housing on a daily basis.
Oslo, Zurich, Geneva, Copenhagen, Stockholm and Tokyo are the only cities with higher living costs, according to the financial services firm report.
Sydney is the only Australian city included in the latest UBS rankings.
But it’s not all bad news for Sydneysiders, because with high living costs come higher wages, UBS found.
Sydney finished second in a table ranking the domestic buying power of its citizens. This ranking is calculated by comparing wages in each location with living costs.
In 2010 Sydney was 12th on the list of most expensive cities and in 2009 it was 38th.
Sydney is moving rather quickly to the top of report rankings. This can not be put down to currency pricing exclusively as no other Australian cities are on this list
However, Sydney is just one of many cities that have seen a jump in their rankings.
UBS found some US cities had fallen in the cost of living rankings, with New York slumping to 14th, if property rental is excluded.
In recent years New York has been ranked in the top 10 of the most expensive cities.
“This can be attributed to the general depreciation of the US dollar versus the world’s other currencies,” the UBS report added.
London slumped to 15th place on the list, compared with 10th in 2010.
The rankings, published in the annual Prices and Earnings, are calculated by comparing the cost of an average “shopping basket” of 122 goods and services.