Singapore remains the world’s most expensive city for luxury spending for the third year in a row, while London has overtaken Hong Kong to claim second place, according to a Bloomberg report, citing Julius Baer’s latest annual report.
Monaco and Zurich rounded out the top five, while Shanghai — the 2022 leader — dropped two spots to sixth, added the report.
The report found that prices of luxury goods tracked in its index fell by 2% — the first decline since the survey began in 2020.
Julius Baer called the dip “quite exceptional,” noting that luxury prices typically rise at twice the rate of average consumer inflation, reported Bloomberg.
“In light of ongoing uncertainty, trade tensions, and tariffs, our findings represent the final moment ‘before’ the current situation,” Bloomberg quoted Christian Gattiker, head of research at the Swiss bank, as saying.
Next year’s report “will likely provide a fascinating ‘after’ perspective,” he said.
With the current “unpredictable nature” of the world, Singapore continues to attract the wealthy with its stability and security, while Hong Kong’s new investment-for-residency scheme has sparked strong interest, reported Bloomberg, citing Julius Baer.
Hotel suite prices jumped 10.3% in Singapore but fell 26.1% in Hong Kong.
London climbed in the rankings, driven by a 26.6% surge in private education costs and a 29.7% rise in business class fares. However, the UK capital faced a “turbulent ride” due to the abolition of non-domiciled residency status, prompting some wealthy individuals to look elsewhere.
Impact Shorts
More ShortsCities like Dubai, Milan, and Zurich have benefited, with Dubai climbing five spots to seventh and emerging as a “firm challenger” to traditional wealth hubs, added the report.
“The momentum of millionaires relocating to Dubai, which began during the pandemic, is predicted to continue,” the report said.
New York ranked eighth and remains the only city in the Americas to make the top 10, while São Paulo and Mexico City saw the steepest drops, falling to 16th and 21st respectively.
According to the report, the luxury sector is entering a downturn after an extended spending spree, weighed down by high interest rates, slower economic growth, and rising trade tensions. Technology led the decline in prices, though business class flights bucked the trend, rising 18.2%.
The Julius Baer Lifestyle Index ranks 25 global cities based on the cost of luxury items—from property and private schools to cars and fine dining—based on surveys conducted with high-net-worth individuals (assets over $1 million) between February and March 2025.
With inputs from agencies