Australian cities among most expensive in world

Australian cities are among the most expensive places in the world to live – with day-to-day costs in Sydney and Melbourne outstripping the likes of London and New York.

And home loan customers in these two cities will not be able to ease their plight much by moving from the sixth and seventh most expensive cities in the world because Perth and Brisbane are close behind in 13th and 14th place respectively.

The figures from the Economist's Intelligence Unit shows that Melbourne has risen from 38th to seventh place in the listing and costs a whopping 40 per cent more than New York.

Speaking to the Age, AMP chief economist Shane Oliver said that the main reasons were the strong Australian dollar and the steadily increasing cost of housing – which has pushed up the price of home loans.

However, he claimed that it was not all bad news for Aussies, saying: "If you compare it internationally we've become a more expensive place to live, but for Australians it hasn't really changed."

Despite the rising cost of living, the National Australia Bank saw the number of home loan customers it has on its books increase in May of this year.

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