New Zealand cities rate as cheapest in Asia-Pacific

Auckland and Wellington are cheaper to live in than any other major city in the Asia-Pacific region. Photo / Glen Jeffrey

Auckland and Wellington are cheaper to live in than any other major city in the Asia-Pacific region, according to a global survey.

Mercer's 2010 Worldwide Cost of Living Survey ranked Wellington 163rd out of 214 cities. Auckland had slightly greater living costs at 149th, equal with Aberdeen and just ahead of Johannesburg (150) and Kuwait City (151).

The higher-ranked the city is, the more expensive it is to live in.

Mercer senior associate Anthony Shippard said New Zealand's position on the list was "very good news".

"The cost of living within New Zealand is really one of the most reasonable in the whole of the Asia-Pacific region, and of the developed economies within the Asia-Pacific region, it really is the best."

Mr Shippard said New Zealand had an advantage in that its economy had not been as strongly affected by the recession as others. "The strength of the New Zealand economy and, really, the state of your currency, has meant that the US dollar is still able to buy significant international goods at reasonable costs within New Zealand."

The survey is aimed at international companies which transfer employees to cities around the world. Cities were ranked by comparing the prices of more than 200 everyday items, including housing, transport, food, clothing and entertainment.

Mr Shippard said New Zealand would be regarded as a favourable destination for companies sending employees overseas. "At the moment, New Zealand looks good from both the employee perspective, in that the quality of life is very good, but also the employer perspective, in that the cost of relocating someone there is so low."

Both Auckland and Wellington ranked highly in Mercer's 2010 Worldwide Quality of Living Survey last month, with Auckland taking fourth place and Wellington coming in 12th.

In the Cost of Living Survey, three African nations featured in the top 10 most expensive cities, with European centres taking the other spots. First place went to Luanda, capital of southwest African nation Angola, while other costly destinations included Tokyo (2), Moscow (4) and Geneva (5).

The cheapest Australian city was Adelaide (90), while Sydney ranked as one of the world's priciest (26).

The most budget-friendly city surveyed was Pakistan's financial capital, Karachi, ranked lowest at 214th.

The survey measured destinations against a base city, New York, while currencies were compared with the US dollar.