 |
CITIES
Jo'burg: world's cheapest city
9 June 2002
Johannesburg is the cheapest city in the world, according to a cost of living survey released by a Geneva-based research company this month.
Mercer Human Resource Consulting, an international research company, produces an annual rating of the cost of living in 144 of the world's major cities. The survey, designed to help global corporations assess the costs of operations around the world, uses New York as its base, scoring it at 100 points.
Jo'burg: even cheaper than they say!
There’s nothing wrong with the information on Jo'burg that researchers gave to Mercer, writes Barbara Ludman - except for their own expensive tastes! 
|
|
Hong Kong, rated this year's most expensive city, scores 124.2 points. Johannesburg, which replaces Malawi's Blantyre as the cheapest city, scores 34.4 points. Last year, Johannesburg ranked as the fifth cheapest city in the world.
The report says of Johannesburg: "Despite the fall of the rand over the last year (more than 40% from March 2001 to March 2002), there has been only moderate inflation in South Africa, making Johannesburg the least expensive city in the world".
The survey measures the comparative cost of over 200 items in each location. These include housing, food, clothing and household goods, together with transport and entertainment.
The information is used to assist multinational companies in determining compensation allowances for their expatriate workers.
In Johannesburg, the researchers went to such sources as Ludophi Rentals, Prestige Rentals and Seeff
Residential Properties, and divided areas into three categories: “good areas” – Norwood, Northcliff, Randburg, Northcliff and Sunninghill; “very good areas” – northern suburbs, Bryanston, Sandton and Parkmore; and “best areas” - again, northern suburbs, including Houghton, Rosebank and Sandton.
They found that a three-bedroom furnished house in a good area would cost around R7 000 to rent; in very good areas, R20 000; and in the best areas, R38 000. Unfurnished in an equivalent area was a bit better: R5 300, R14 000, and R33 000.
Furnished apartments came in considerably cheaper: for three bedrooms (120-160 square metres), they found one would expect to pay R6 500 in good areas; R14 500 in very good areas, and R19 000 in the best areas. An unfurnished flat of equivalent size in equivalent areas would run to R4 000, R7 000 and R14 000.
For the price of food, they consulted Pick & Pay, Woolworths Fourways, Thrupps and the Friendly Grocer chain, while for clothing
they went to Woolworths, Edgars and Grays, formerly Surtees.
There were three categories of restaurants: “pizzerias/cafeterias” (represented by Mimmos); “good restaurants” (Walnut Grove and Turn ‘n Tender); and “elegant/hotel restaurants” (Linger Longer and Villamoura).
They looked up car prices in the Star, consulted the Wanderers Club, Northcliff and Bryanston country clubs for golf and tennis prices, and for bars and cafes went to a Brazilian, the Sunnyside Park Hotel and – for “elegant or hotel bar” – the Sandton Sun.
They found private school fees exceptionally pricey – from R13 648 at the German School to $15 180 for the American School.
Most & least expensive cities: gap narrows
Results released by the multi-national based in Geneva show that the gap between the world's most and least expensive cities is narrowing. In the last year alone, the difference has reduced by nearly 15%.
Marie-Laurence Sépède, senior
researcher at Mercer, said: "Increasing globalisation means that international companies are now producing more high-quality items locally, reducing the need for imports. This particularly affects the living costs for expatriates in developing countries who often pay a premium for imported food and household goods from the West."
Harare in Zimbabwe is the most expensive city in Africa and has jumped dramatically from 130th to 26th position. The main reason for this is the high rate of inflation, due to the current political and economic situation. Further, the official exchange rate remains stable, clearly exposing price increases.
Cairo has been suffering from the devaluation of its currency and the economic consequences of 11th September, particularly regarding tourism. Consequently, it moves down in the ranking, from position 39 to position 51 (score 72.9).
Nigeria has also experienced economic problems over the past year, as well as a high level of inflation and
ethnic conflict. As a result, Lagos moves up in the index, from position 109 to 60, with a score of 69.5.
New York is the costliest city in North America. Other expensive cities include Los Angeles in 19th position (84.7), Chicago in 20th place (83.7) and San Francisco at position 21 (83.6). Canadian cities are much cheaper, with none of those surveyed appearing in the world's 100 most expensive cities. Toronto takes 104th place (59.7), while Vancouver is in position 110 (58.5). Ottawa is the least expensive Canadian city, 129th in the table with a score of just 52.5.
In Europe, Moscow, St Petersburg and London are the costliest cities, scoring 120, 98.6, and 91.0 respectively. Geneva (80.8), Zurich (79.8) and Oslo (77.1) are the next most expensive cities in Europe, with the score for each increasing slightly since last year.
In the EU, London is by far the most expensive city, and this year has moved back into the world's top 10 - rising to joint 10th position from
12th place last year. Accommodation and transport costs are particularly high in London compared to the rest of the EU which, together with higher duty on items such as alcohol and tobacco, drive up the city's score.
After London, Copenhagen is now the next most expensive city in the EU, at position 62 (index 69.3), followed by Milan, ranked 63 (score 69.1), Dublin in 73rd place (67.5) and Paris at position 74 (66.8).
Worldwide, New Zealand and Australian cities are still the cheapest, yet with the highest quality of living. Auckland and Wellington have both dropped five places in the table, and are now in position 140 and 142 respectively out of the 144 cities reviewed.
The cost of living in Australia's Adelaide, Brisbane and Perth is only marginally higher (Sydney is the only Australian city amongst the world's 100 most expensive cities - position 95, score 62.2). With index scores of well under 50 in these cities, living costs here are under half those of the
world's costliest cities, while ranking among the top 30 for quality of life.
Source: City of Johannesburg web site
| |
World Summit special
One of the largest ever gathering of global leaders takes place in Jo'burg in August and September. Visit our Summit page for world-ranging news, views, features, info, links & more!
How far will my money go in SA?
A long, long way. Because of the favourable exchange rate, you'll find South Africa a very inexpensive destination. For a pound you can buy seven daily
newspapers, one hamburger, about five cans of Coke, about four beers, two cappuccinos or a pound of cheese ...
Living standards - surprise!
South Africans may be feeling the pinch of higher petrol and food prices this year. But SA’s best-known market research survey takes a longer view, providing hard evidence that living standards have improved since the country's first democratic elections in 1994.
Jo'burg on the move
If you're a city person, you will love Johannesburg. It's a vibrant and dynamic place with a throbbing pulse and an awesome sense of rhythm.
We're living in an urban forest
It's official – there are over six million trees in Johannesburg. On satellite pictures, the city looks like a rain forest.
Jo'burg water: good as bottled
Johannesburgers drink water of world-class standards. The quality of the water provided by the city's supplier is measured against international standards - and easily meets them.
|
|
|
