Expats ready to call NZ home even as costs rise
BUSINESSDESK: Expatriates still think New Zealand is an attractive place to call home, even as the cost of living in Auckland and Wellington surges to record highs.
Auckland increased 62 places to 56 out of 214 countries, in Mercer's worldwide cost of living survey, while Wellington jumped to 74th place from 136th.
The survey helps multinational companies and governments determine compensation allowances for their expatriate employees. It measures over 200 items such as transport, food, household goods and entertainment.
"In relation to other countries New Zealand is still pretty competitive - there are other cities that are far more expensive," Sarah Barnaby, senior associate at Mercer's information product solutions business, told BusinessDesk.
"If we think about large multi-nations I don't think New Zealand would be the first choice - since our proximity means we will never be the closest but we are still an attractive option."
The increased cost of rental accommodation coupled with the high kiwi dollar helped attribute to the rise.
Rent prices across New Zealand increased by 2.3% in the March quarter, compared with the same period a year earlier, according to Statistics New Zealand data. The New Zealand dollar has gained 0.6% against the greenback so far this year.
Government data out this week showed that food prices rose by 0.3% in May. That is the second monthly increase this year.
Produce reported the biggest increase, up 3.2%, while the price of non-alcoholic beverages rose 2.2% and restaurant meals and ready-to-eat food advanced 0.7%.
"Yet for expats, New Zealand still continues to offer improved lifestyle and career opportunities despite the rise in costs," Mr Barnaby said.
Multinationals are able to take advantage of local and regional business opportunities in New Zealand. The country also acts as great base to Asia and is away from Europe's current economic uncertainty, he said.
Globally, Tokyo was the most expensive city, followed by Luanda and Osaka.
Across the Tasman, Sydney jumped three places to 11th most expensive, followed by Melbourne up, six places to 15, and Perth, climbing 11 places to 19th.
In the North Hemisphere, London dropped back seven places to 25th, while New York was the most expensive US city, coming in at 33.
At the other end of the scale, Karachi in Pakistan was the cheapest city, followed by Islamabad, also in Pakistan, on 213.
Back to home
Back to top
Print
Latest
NBR SERVICES
SUBSCRIPTIONS
Sign up for NBR subscriber content or email alerts
Comments and questions7
femijourno echo chamber alert!
where do they get these surveys from - i live out of counrty and not one of my many nz friends intent on returning
I can purchase NZ lamb, beef, cheese etc in the Middle East cheaper than at Pak n Save!
How about some decent investigative journalism and putting the produce providers and transportation suppliers on the spot for shafting the domestic market.
If you want NZ to be more attractive and competitive internationally, then start importing some of these products. Add into that some internationally competitive labour - heck we could even rebuild Christchurch and a better roading system. Couldn't be worse than current.
Mercer continues to prove it has no credibility. Needs to get some more real world feet on the ground basis to its reporting and I suggest surveying. This report is so out of touch with the vast expat community I mix with regularly in many countries who have fled NZ with no intention of coming back. Some I know have returned and unless they have secured a degree of wealth enabling them to stay removed from the realities of daily common life which after all anyone wealthy enough in any country can, then NZ soon becomes an expensive cold hole with no future for young folk.
What would you do when you get back to New Zealand? Buy a flash house and sit next to the pool (if it is warm enough to swim)?
I concur with all the above comments that the survey is half baked. If I have tonnes of money, I want to be able to travel. Where can I go within4 hours flight of NZ? Let me guess, Sdyney, Melbourne.. But if I am based in Singapore, I can be in 6-8 countries.
To go back, there must be a purpose. Yes, family life is important, but what are you going to do when your children is at school, and you are at home? Visiting your in laws? Play bowls everyday?
I think my country is great, but even I have a problem with this survey! There are no reasons for expats to come here, other than a lifestyle. But then you hardly get a NZ lifestyle in Auckland (traffic, noise, pollution, high house prices, etc). No, lets face it, expats can have a lifestyle and extra money in many other country.
New Zealand looks more appealing than it is from afar, once you live there the flaws become apparent and balancing the debits and credits is a mare. Life is pretty basic and ain't that flash for most unelss they are already cashed up on arrival and coming to retire.