Shanghai cheaper than other cities
- Source: Global Times
- [10:49 June 17 2010]
- Comments
By Tang Zhao
As the most expensive city on the Chinese mainland, Shanghai may serve the priciest cocktails, but its global ranking has dropped significantly compared to last year, according to the London-based 2010 Cost of Living Survey.
Shanghai plummeted to 46th this year from 28th last year due mostly to the Chinese yuan being pegged to the weakened US dollar, making the yuan relatively cheap compared to other currencies, said the report released Monday, which focuses on the cost of living for foreigners abroad.
Beijing, too, tumbled, 29 places to 55th, said the study by Employment Conditions Abroad International, a consulting company that monitors price changes in categories including food, drinks, tobacco, clothing and dining out.
Take a Big Mac hamburger from McDonald's for instance. The burger costs HK$ 17.3 ($2.22) in the 34th globally ranked city of Hong Kong, but slightly less on the mainland at 14 yuan ($2.05), according to prices listed Wednesday on the fast-food giant's official websites. In Tokyo and New York City, the same order goes for roughly $3.50.
"Shanghai presents endless options when it comes to food," American Arin Vahanian, a project manager who works in Shanghai, and who has previously lived in Taipei and Tokyo, told the Global Times Wednesday. "You can eat for cheap, or shell out if you choose to though you get what you pay for."
Though bigger-ticket items like accommodation, vehicle purchases and education fees for children contribute in large to living expenses, these factors were eliminated from the study since such expenses are covered by generous expatriate packages, said the report.
But for expats like Vahanian, who do not receive the benefit of free accommodation - an increasing reality as employers continue to localize expat compensation - housing remains a burden to his cost of living.
"The thing that distinguishes Shanghai from many other Asian cities is the extent of the range available for housing," he said. "It's hard to find reasonably priced accommodation in Tokyo, whereas in Shanghai, you can find a cheap place if you want - but the price gap will reflect the quality, especially in the city center."
Yet despite that Shanghai continues to be the most posh place to live on the mainland, for all its exclusivity, its cost of living is still far behind that of other world-class cities, according to Shanghainese Yi Mi, a reporter who has lived in Sydney and Melbourne, which are listed as 30th and 37th in the global rankings, respectively.
"Shanghai is still cheaper than a lot of cities," the 27-year-old said. "But since expats receive higher salary packages than most locals, when converted to Chinese yuan, they have more purchasing power here."
