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Hong Kong named most expensive city for expats

Reporter: Li Jiejun 丨 CCTV.com

07-04-2016 05:12 BJT

A new international survey has ranked Hong Kong as the world's most expensive city for expatriates. The result may affect multinational companies' strategies for sending expats there.

50 US dollars for a simple brunch. For Canadian expat John Sydoruk and his girlfriend who are both busy, eating outside is part of their life. And that is not a small sum of their expenses every month.

John was sent to Hong Kong by an IT company three years ago. He enjoys how his life became easier here. He is concerned though to see the cost of living going up dramatically.

"I find the rents much more expensive than where I came from in Canada. My apartment costs at least more than double that I pay in Canada, but the size is much smaller than what I got in Canada. And going out wines, the cost is higher, depending on where you go out. If you go the the center of the city, the drinks are very expensive. Compared with other cities, there’s considerable increase. I’m not saying I cannot afford, but more expensive," Sydoruk said.

According to a report by global consultancy firm Mercer, Hong Kong is the world's most expensive city for expatriates to live in.

It surveyed over 200 cities and graded them based on a number of items, such as housing, food, and entertainment.

Mercer found that an unfurnished two-bedroom apartment in a decent Hong Kong neighborhood costs as much as 6,800 US dollars a month -- higher compared to London's roughly 4,600 dollars and Tokyo's 4,000 dollars. In Hong Kong, you'll need to pay about 8 dollars just for a cup of coffee — twice as much as London and Tokyo.

Living in Hong Kong is always expensive. But what made it the world's priciest city this year?

"First, HK dollar is pegged with US dollar. Currency fluctuation is one the main factors affecting the ranking......(3) Last year, the most expensive city Luanda, but the local currency has been depreciated for more than 40 percent. Secondly, Hong Kong is quite expensive for several items, for example, the house rental is the most important element, and food at home, utility and transportation cost are also expensive compared to many cities in the world," Connie Leung with Mercer Hong Kong said.

Hong Kong's free market and low taxation has attracted many multinational companies to send staff here.

And for those expats, they may have to get used to the changes.

John's work is going well. His company hopes he can stay longer as it plans to expand and go to the giant Chinese mainland market.

But because of housing rental fees are rising, John has moved from downtown Central, which is near his office, to another place farther.

He says high prices may soon to more or less change his lifestyle, and his company’s overall arrangement.

The survey is designed for multinational companies to calculate expat workers' allowances. Experts say that if the cost of living remains high or continues to rise in Hong Kong, these companies may have to adjust their future development strategies.

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