Urban cool

Hot on the heels of its footballing triumphs, New Zealand has scored another victory - this time as one of the cheapest places to work and live in Asia-Pacific. AMANDA MORRALL takes a closer look.

Once upon a time, a city's worth was measured by its expense, making London, New York, Tokyo and so forth among the most coveted and alluring places to live.

In today's economic climate, the high life has been eclipsed by quality of life and affordability as barometers of urban cool.

At the bottom of the world, New Zealand is beckoning.

In a recent cost-of-living survey, our biggest city and capital were stand-outs in Asia- Pacific in terms of "greatest value for money".

Of 214 cities on five continents, Auckland placed 149th and Wellington 163rd, making them among the more affordable outposts in the world with commercial interests.

By comparison, Luanda, the capital of Angola, laid claim to being the most expensive city in the world for expatriates, followed in order by Tokyo, Chad's Ndjamena and Moscow.

The annual survey, conducted by the global consulting firm Mercer, did not include Christchurch or other spots in New Zealand as the list was restricted to cities where Mercer's main multi-national clients had activity.

Rankings were based on the comparative cost of more than 200 items in each location, including housing, transport, food, clothing, household goods and entertainment.

New York was used as the base city for the index and currency movements were measured against the United States dollar.

The survey, billed as the most comprehensive of its kind, is designed to help governments and multi-nationals calculate compensation for expatriate employees.

It invariably attracts interest each year among restless globe- trotters trying to weigh up the competitive advantage of living abroad, particularly Kiwis intrigued by supposedly greener pastures overseas.

Contrary to the popular belief (among locals) about New Zealand being a low-wage paradise that many can't afford due to rising costs, this latest survey casts Aotearoa as the promised-land of Asia-Pacific.

That's because relative to other commercial hubs in the region, Australia and New Zealand came across as having a distinct cost-competitive advantage, Anthony Shippard, a senior associate with Mercer, says.

Sydney, Melbourne Brisbane and Perth, finished 24th, 33rd, 55th and 60th, respectively.

With more than 80 rankings separating our most expensive city (Auckland) with one of Australia's cheapest (Perth), New Zealand appears to have the upper hand.

In addition, a separate Mercer survey found New Zealand to have one of the highest relative rankings in terms of quality of life.

Shippard says those two factors conveyed a "powerful message about New Zealand and its market".

"They've come out right at the top of quality-of-living and at the bottom of cost-of- living and those two things are fantastic for New Zealand."

Regardless, the pull to Australia - particularly among Kiwis - is strong.

But to what extent do higher salaries compensate for the higher cost of living in places such as Sydney and Melbourne? Is Kiwi living really all that affordable?

Opinion is divided. Factoring in food prices, rising fuel and power bills (which have surged by more than 40 per cent in the last five years) many argue the price of paradise is too high for low wages to justify.

On-line discussions are rife with analysis. One of them, expatforum.com, cuts to the heart of the issue.

"Emma" writes: "If your wages stretch past your basic needs each month without taking you into debt you are one of the lucky ones. It's a beautiful country, but living under this kind of pressure is very stressful. I have two degrees and the last time I got a job in New Zealand I was working for little more than minimum wage . . . I have been living and working overseas for the last four years and find income versus cost of living to be considerably more comfortable in other countries. It's a real pity."

A British resident offers a similar opinion: "I moved to New Zealand from the UK six years ago and am now visiting the UK for a holiday. I am shocked at how much cheaper the goods are here in the UK, especially groceries, toiletries etc. I always knew New Zealand had high prices for these things but this has reinforced it for me. I am extremely lucky to be in a job with a good wage but still find I cannot save money due to high rents, utility bills etc. If you are thinking of coming over to New Zealand, be aware that the cost of living is NOT cheaper!"

Such complaints are common but typically countered by praise for non-monetary features that make New Zealand so attractive for foreigners.

That same on-line contributor from the UK adds: "Having said all that, the lifestyle is fantastic, laid-back and the weather is way better than the UK - you can't put a price on that. Definitely a nicer country in which to bring up kids . . . However, like a lot of the population, you may find yourself drifting over the Tasman to Oz."

On the question of how far salaries stretch on either side of the Tasman, Shippard declined to comment but admitted companies are scrutinising cost- of-living issues just as closely as individuals these days.

"In the current economic climate, people are being more careful about expenses of moving people."

If migration patterns are any indication, there is a net benefit in moving across the pond.

According to Statistics New Zealand, in the first five months of this year, more than 14,000 Kiwis left for Australia. The trend has been growing since the early 1990s. By the 2000s, one in nine New Zealanders lived in Australia. While many come home, anecdotal evidence suggest it is only after they have made their riches.

- © Fairfax NZ News