Auckland and Wellington have been ranked among the world's 75 most expensive cities, with the strong dollar and skyrocketing accommodation cost and demand being blamed for the steep cost of living.
Both Auckland (56) and Wellington (74) jumped a very significant 62 places.
Meanwhile, across the Tasman, Sydney, Perth and Melbourne have been ranked among the world's 19 most expensive cities.
It means the Aussie cities are now more expensive to live in as an expatriate than London, which came in 25th place, according to the 2012 Mercer Cost of Living Survey.
“The leap up the list by cities in New Zealand follows large increases in both accommodation cost and demand, coupled with a stronger New Zealand dollar,” said Ms Constantin-Metral.
“Demand for rental properties has also increased significantly in all the Australian cities we rank. Coupled with very limited availability, the result has been very tight markets and increased prices.”
Tokyo came in at the top spot on the survey while Luanda, the capital of oil nation Angola, came in at number two.
Osaka, in Japan, and Moscow filled out the top four places.
The survey, conducted by global financial services and recruitment group Mercer, ranked 214 cities according to their comparative costs of transportation, food and housing.
Karachi, in Pakistan, was the least expensive of the 214 cities ranked.