 "Singapore retains title as most expensive city for luxury spending, Hong Kong moves to second spot. Which other cities are on the list?")
While Singapore retained the title as world’s most expensive city to live ‘extremely well’, increased spending by Hong Kong’s wealthy residents pushed the city one notch higher to make it the world’s second-most expensive metropolis.
According to a South China Morning Post report, citing the Julius Baer report released on Tuesday, London and Shanghai are in third and fourth place, respectively, with Monaco rounding out the top five. Shanghai dropped one spot from last year while London climbed one place, added the report.
The other cities making it to the top 10 include Zurich (6), New York (7), Paris (8), São Paulo (9) and Milan (10).
According to the report, the fourth annual global wealth and lifestyle report by Swiss bank analysed the cost of a basket of goods and services across 25 cities from November 2023 to March 2024. The study focused on consumption patterns among high-net-worth individuals (HNWIs), defined as those possessing at least US$1 million in investible assets.
According to The Edge Singapore, citing Julius Baer, Singapore is also the most expensive place in the world to own a car. The city continues to attract the ultra-wealthy by maintaining its reputation for political and economic stability alongside a “pro-business environment”, it added.
How have the top 10 cities changed since 2022
Credit: Julius Baer
Singapore was placed at fifth position behind cities like London and Taipei in the 2022 version of the annual report, which is now in its fifth year.
Impact Shorts
More ShortsHong Kong, now the runner-up, has climbed one position this year to become the second-most expensive city for property prices, replacing Shanghai in the rankings. Hong Kong is also the most expensive place to engage a lawyer.
Hong Kong also saw an increase in the prices of many other luxury items. The price of a hotel suite surged by 22.9 per cent and ladies’ shoes by 12.7 per cent. However, the price of whisky declined by 18.8 per cent.
Meanwhile, Shanghai, now ranked fourth, faced real estate market challenges last year that Julius Baer believes affected consumer confidence. Despite this, it remains the most expensive city to indulge in a degustation dinner.
Taipei, which placed eighth last year, has dropped out of the top 10. Bangkok and Jakarta also fell from 11th to 17th and 12th to 14th respectively.
Tokyo, which placed eighth in 2022, dropped out of the top 10 to place 15th last year. Japan, in 23rd place this year, saw swings only when prices were converted to US dollars.
Weaker currencies made a big impact
According to Julius Baer, this year, many of the biggest jumps up and down the index were a result of currency fluctuations.
“Index prices are converted to US dollars to allow for global comparison, and the strength of currencies such as the Swiss franc and, conversely, the poor performance of currencies such as the Japanese yen are clearly seen in the performance of these cities in US dollar terms,” the report said.
Many Asian cities saw their rankings fall because of weaker currencies. Tokyo was hit the most, slumping to 23rd from 15th, as the yen sank to the lowest in three decades.
Zurich saw the biggest improvement in ranking, climbing to sixth place from 14th because of a stronger Swiss franc.
“This year’s report shows that currencies matter a lot,” South China Morning Post report quoted Christian Gattiker, the head of research at Julius Baer, as saying.
Asia making strides in development journey
Asia ranked as the second-most expensive region because of its economic growth after Europe, Middle East and Africa, which was consolidated as one region by the Swiss bank.
Mark Matthews, head of research for Asia-Pacific at Julius Baer, told South China Morning Post that Asia is making significant strides in its development journey, showing the potential of innovation and collaboration.
“The technological advancements of China and India, along with the robust economies of Southeast Asia, contribute to the region’s resilience and growth,” Matthews was quoted as saying. “Singapore, located in this dynamic environment, is leading the digital transformation,” he added.
According to the report, for HNWIs, healthcare was their top priority, with more than 63 per cent of respondents in Asia citing health and well-being as their main concerns.
Wealthy individuals are planning to increase investments and indulge more in travel and fine dining now that pandemic-related travel restrictions have eased. In Asia, 74% of respondents increased spending on luxury hotels this year, while 71% spent more on fine dining, according to the report.
Seventy per cent of wealthy individuals achieved substantial returns on investments in the past year, with ESG (environmental, social, and governance) principles guiding their decisions, added the report.
With inputs from agencies
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