The Japanese capital city of Tokyo comes first on the list of most expensive cities to live in. In addition to being the top of the list of cities with the highest living costs, it is also the centre of the world's largest metropolitan area by both population and economy. This is probably what makes it the most expensive city in the world in which to live. The Tokyo stock exchange is one of the world's largest, and is the largest one in Japan. Many international companies are based in Tokyo, and yet more have regional offices in the city which leads to a lot of highly paid jobs. In addition, the large size of the population leads to massive demand for space, and this is further exacerbated by the fact that Tokyo is surrounded by the Bay of Tokyo and a lot of steep hills and mountains. All of these factors combine to make Tokyo the most expensive city in the world in which to live.