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 Cost of living & Quality of living |
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Cost of Living & Quality of Living in South Africa |
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Quality of Living Cape Town has been ranked by the latest Mercer World-Wide Quality of Living survey as the best city one could live in the Middle East and Africa (June 2008). The city tied Port Louis in Mauritius in 80th spot (out of total 215 worldwide cities) based on political, social, economic and environmental factors, personal safety and health, education, transport and other public services. Thus quality of living in Cape Town exceeded even such popular expat locations as Dubai (83rd) and Abu Dhabi (87th). In contrast, Johannesburg slipped from 90 in 2007 to 94 in 2008.
Cost of Living Based on Mercer’s 2008 Worldwide Cost of Living Survey, Johannesburg was the lowest ranking city within the Europe, Middle East & Africa region (140th out of 143 cities worldwide). Cape Town cost of living is comparable to that of Johannesburg, if not cheaper due to lower housing costs. The survey showed that South Africa has infact become more affordable to expatriates, having ranked 136th in the 2007 survey.
Cost of living determinants - Cape Town
Locally produced food is of high quality and cheaper in comparison to many European countries and USA. Imported foods can be pricey but can be easily substituted for local. For example, a loaf of bread and a litre of milk will cost under 10 rand, and a kilo of good quality beef steak – 70-100 rand. A very good bottle of wine will set you back around 60 rand, while a 6-pack of beer – 35 rand. Locally made clothing, shoes and accessories are very affordable but the range and the quality is not as good as what you might be used to coming from Europe or USA. Imported clothing is more expensive than overseas and collections are usually lagging a year behind. Car prices are quite stable and cheaper than overseas. Fuel costs however are getting higher and higher. Currently diesel costs R11.79/l and petrol R10.20/l. Car insurance for a mid-range car will cost around 500-600 rand monthly. Cost of books, CDs and DVDs is on par with overseas, which makes them relatively expensive for South Africans.
Despite steadily rising prices during the last 5 years, housing in Cape Town remains very affordable. Selling prices range a lot based on location. R20,000-25,000 can get you a nice 4-5 bedroom rental in some the best areas (Southern Suburbs or Camps Bay), with a pool, a garden, and views. If you are willing to let go of some luxuries, you can find good three bedroom houses in a safe area for 12,000-15,000 month. Council costs (water, waste collection etc) amount to roughly R100-150 per month. Electricity costs have recently been increased drastically by some 40% and depending on your consumption will amount to R 500-R1500 monthly. Armed Response (security companies) charge around R 300 per month. Salaries for domestic staff such as cleaners and gardeners range between R 110 – 180 per day, and for qualified nannies – R 200-300 a day. Pool and garden service will cost you between R 500 and R 1000. Locally made furniture is affordable and some of it very good quality, but the variety it not great. Imported furniture is expensive and limited. The choice of appliances is very good and prices are on par with overseas. See For Your Home section for more details.
Private medical care is of excellent quality and more affordable than overseas. Monthly premiums for a couple with comprehensive medical aid coverage are around R 3,500- R 4,000. Costs for treatments not usually covered by medical aid, such as cosmetic surgery and fertility treatments, are also relatively inexpensive and facilities and doctors are world class.
School fees in high quality independent schools vary from R25,000 to R40,000 per child/year, which also makes them considerably lower than overseas. After schools activities such as sports and art classes can amount to another R 3,000 - R5,000 per year per child/class.
Eating out in Cape Town is an affordable treat. A 3 course dinner for 2 with a nice bottle of wine in one of the top 5 gourmet restaurants will cost under R 800, but you can easily find great restaurants where you will pay the same for a similar extravaganza for 4. A cup of coffee or soft drink costs R 10-15, and a beer R 15-25 in a reastaurant. A nice breakfast or lunch will cost around R 50-100 per person. Gyms are very well equipped by any standards and inexpensive. Membership costs under R 200 per month and an hour with a personal trainer – from R 100 to R 200. A round of golf at most courses costs R 250-300 (affiliated fees), and annual club memberships cost from R 900 to R 9,000. Spas are numerous and relatively cheap. A 60-minute massage or a facial will cost from R 250 to R 400. Movie tickets cost R 25.
VAT on all products and services amounts to 14% and is included in all consumer prices. Basic food, transport and education are VAT-free. Last updated: December 19, 2009 |
