London has trumped Hong Kong as the world's most expensive city, according to a report from international estate agent Savills. For the first time since the Savills "Live/work index" was launched in 2008, London has outdone Hong Kong as the priciest city for companies to locate staff.
Londoners have been hit by resurging property prices—unlike in Hong Kong, where residential rents have fallen. For companies happy to locate their staff around the world, Hong Kong's attractiveness has been boosted by the weakening Hong Kong dollar, while sterling has appreciated against the U.S. dollar. Despite London's climb in the rankings— from fifth to first place in the space of six years—the cost of living and working in the city is nonetheless less than the record set by Hong Kong in 2011 of $128,000 per annum. By comparison, it currently costs $120,568 for employers to locate staff in London in 2014.
SOCIAL
-- CNBC's Katy Barnato