Joburg, known as the City of Gold, has replaced Asunción in Paraguay as the least expensive city in the ranking of 143 cities, and is three times cheaper to live than Tokyo, the world’s most expensive city.

(Above: Chief executive of the Joburg Tourism Company, Lindiwe Mahlangu, named “Africa travel personality of the year” at the World Travel Awards)

London has become a more affordable city to live over the past year. A falling pound and lower rents have pushed the capital down the list of the most expensive cities from third to 16th place.

“The decline of rental prices, coupled with the fall in the value of the British pound against the US dollar, have caused London to plummet in the rankings,” said Nathalie Constantin-Métral, a senior researcher at Mercer.

Tokyo knocked Moscow off the top spot, while Osaka is in second position. Moscow has slipped to third place. Geneva climbs four places to fourth position and Hong Kong moves up one to reach fifth. New York has moved into the top 10.

The survey covers 143 cities across six continents and measures the comparative cost of over 200 items in each location, including housing, transport, food, clothing, household goods and entertainment.

The news of the influential poll will come as excellent news to Joburg as it gears up the FIFA 2010. The city has come a long way over the past decade and is growing a reputation as an events hotspot.

It has just hosted the Confederations Cup as well as Africa Fashion Week and is also gearing up for the Miss World beauty pageant, which is being held in the city for the second consecutive year. And next summer, Joburg will host the inaugural World Sport Destination Expo, the first global business forum dedicated to showcasing the $600 billion a year sport tourism industry.

Co-located alongside the 2010 FIFA World Cup in Johannesburg, the world’s most sought after sporting destinations, resorts and hotels, tour operators, specialist event organisers, sporting bid committees, financial investors and elite buyers will meet to sell and sign new contracts over 5 dedicated business days on 5-9 July 2010.