No, you might feel is the obvious answer to the above question. But a new survey out today begs to differ. According to consultancy firm Mercer, Shanghai is now the seventh most expensive city in the world for expats – down from a ranking of sixth last year. Hoorah!
The top ten most expensive cities for expats in 2016 were: Hong Kong, Luanda, Zurich, Singapore, Tokyo, Kinshasa, Shanghai, Geneva, N’Djamena and Beijing.
And while Shanghai has been sliding (ever so slowly) down the cost ratings, Hong Kong has been rising, and was voted the most expensive city for expats this year. But before you rush out on a shopping spree with all the money you’re going to save, the new placing doesn't necessarily mean Shanghai is getting any cheaper. Researchers put the re-jigging of the cities at the top largely down to the British capital London sliding down the ratings amid concerns over a potential exit from the European Union - this year, London dropped to 17th place. Currency fluctuations have also been behind many cities moving upwards, including a strong Hong Kong dollar and Japanese yen.
And in contrast, those cities in countries whose currencies have slumped became more affordable, with Moscow plummeting from 17th in 2015 to 67th this year.
The rating is used mostly by employers who want to work out living costs for their expat workers by looking at the price of more than 200 items, from housing and transport to a cup of coffee and a bottle of beer. While renting accommodation represents one of the largest costs, the study only accounts for housing “of international standards”, located in “an appropriate neighbourhood”. These requirements explain why the top 10 includes some cities that not everyone would expect to be judged the world’s priciest. This year Mercer hasn't published more detailed findings, but last year it rated the 'average' monthly rent for a two-bed apartment in Shanghai as a hefty 4,064USD (25,241RMB).
Elsewhere in China, Shenzhen climbed two places to 12th place, while Guangzhou fell three places to 18th.
The world’s least expensive cities for expatriates, according to Mercer’s survey, are Windhoek, Namibia (209), Cape Town, South Africa (208), and Bishkek, Kyrgyzstan (207).