Three Australian cities are now rated as more expensive than London for expatriates, with the strong dollar and steep rents blamed for the high cost of living. Sydney, Melbourne and Perth now rank as among the world's 20 most expensive cities, while the British capital dropped to 25th spot, according to the 2012 Mercer Worldwide Cost of Living Survey. The world's 50 most expensive cities All lagged behind Tokyo, Japan, and Luanda, the capital of oil-rich Angola, while Japan's Osaka and Russia's Moscow rounded out the four most costly cities. Sydney jumped to the No.11 spot in the survey from No.14 spot last year, placing it ahead of the likes of Sao Paulo and Rio de Janeiro in Brazil. Melbourne jumped to 15th spot from No.21 in the previous year, ahead of the Chinese cities Beijing and Shanghai. "Cities in Australia and New Zealand witnessed some of the biggest jumps, as their currencies strengthened significantly against the US dollar," said Mercer principal Nathalie Constantin-Métral, who oversaw the compilation of the list. "Demand for rental properties has also increased significantly in all the Australian cities we rank," she said. "Coupled with very limited availability, the result has been very tight markets and increased prices." Climbing costs Perth, meanwhile, soared 11 places to No.19 in the year as the mining boom pushed up costs across the board. Canberra also leapt, to 23rd from 34th within one year, while Brisbane rose to 24th from 31. Among major Australian cities, Adelaide surged the fastest up the rankings, climbing to 27th from 46th a year earlier. By a variety of rankings, Australian cities are among the most expensive places to live and do business in. Housing remains among the most unaffordable in the developed world, according to anti-planning group Demographia. The Economist magazine also ranks Australia as having among the most overvalued property markets. Over the 12 months to June, the Australian dollar has traded between 95 US cents and $US1.10, well above its long-term average, amplifying the costs foreigners faces. Mercer, the global financial services and recruitment group, measured costs in US dollars in creating the index. The survey ranked 214 cities according to their comparative costs of transportation, food, and housing. It placed Karachi, the commercial hub of Pakistan, in the No.214 spot.

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