Just released, Mercer’s 2008 Cost of Living Survey makes some interesting reading for those considering a move downunder, that is to Australia or New Zealand.

The Mercer’s survey looks at comparative costs for an expatriate moving to each of 150 world cities. The 2008 survey confirmed Moscow as the world’s most expensive city, the “winner” for three years in a row. Tokyo and London were second and third most expensive respectively The survey is still dominated by Asian and European cities in the top 10 spots but the Australia and Pacific region has been catching up - based, at least in part, on the weakening of the US dollar against most other major currencies.

Sydney is still the most expensive city in Australasia, according to Mercer, and has moved up six spots to 15th place. Comparatively other Australian cities have closed the gap. Melbourne is 36th place, jumping 28 places and Perth has jumped 31 places to reach position 84. Brisbane is at 57th place, up 29 places and Adelaide is 73th- up 23.

New Zealand’s cities remain the less costly option for expatriates, however, with Auckland in 78th place and Wellington in 93.

The survey is comparative based on New York City costs so the drop of the US$ against the Australian and New Zealand dollars has had a significant effect which may not be relevant for locals. The survey was conducted in March 2008 and reported the cost of 200 items such as housing, clothing and food in 143 cities on six continents. The survey only reflects costs not actual incomes in the cities involved either, or the availability of work. It is clear to see the effect of the mining boom on demand and therefore costs on cities such as Brisbane, Perth and to a lesser extent Adelaide.

Looking for a cheaper option? Asunción in Paraguay is the least expensive city in the ranking for the sixth year running.

Photo Credit: Luxury Paris Hotels

South Australia’s capital, Adelaide has only recently started to grow at a rate better than 1% a year. Located between the sea and the wine-growing hills Adelaide is a still a compact city and an oasis in one of the driest states of Australia. A “town” in South Australia is defined as having more than 500 residents and the top 10 in population increase between 2001 and 2006 split neatly between tree-changers and sea-changers.

The fastest growing South Australian town was the aptly named Mt Compass, located on the southern edge of Adelaide, the town grew 40% in the 5 years, but off a low base to a population of 675. Nearby towns of Yankalilla and Strathalbyn also had population increases in excess of 20%.

The opening of the Heysen Tunnel has boosted growth in several Adelaide Hill towns including Mt Barker and Nairne with population growth of 25% and 22% respectively. The only fast growing town to Adelaide’s north was Roseworthy, immediately north of Gawler.

All of the communities mentioned so far are located within 40km of Adelaide. All were tree-change locations too: probably with a dash vino included given the nearby wine growing regions. South Australians have no need to commute 100’s of kilometers for lifestyle in the same way that Sydneysiders or Melburnians will.

The remaining four fast-growing South Australian towns are sea-changers: Robe added 37% to its permanent population of around 1100; Goolwa added 31% with its desirable location near the popular seaside town of Victor Harbour. Port Broughton on the northern edge of Yorke Peninsular

Coffin Bay which increased in population by 30% was the most remote town in the state to grow, near Port Lincoln on the Eyre Peninsular and on the road to Perth, eventually.

Places with marked decreasing populations are Leigh Creek and Coober Pedy. Leigh Creek is a historic coal mining area and Coober Pedy is one of the world’s largest opal producers. Neither scream lifestyle: more like hard work! So it appears that at least in South Australia the boomers are still driving small-town growth and its all about lifestyle.

Photo by Mundoo