A survey of 27 cities by PricewaterhouseCoopers found Sydney is the second most expensive.
AAP reports the survey measured factors like quality of life, economic factors, technology and cost of doing business.
Sydney was ranked second for demographics and livability, behind Paris, and third for health, safety and security, after Stockholm and Chicago.
However, it did not do so well in on transport and infrastructure, coming fourth last with only Los Angeles, Sao Paulo and Johannesburg worse.
"Sydney is more expensive than much bigger cities like New York, London and Hong Kong," said Sydney Business Chamber president Scott Lennon of PwC in a statement.