Singapore has once again been crowned the most expensive city in the world to live ‘extremely well,’ according to the Julius Baer report. However, a surge in spending by Hong Kong’s affluent residents propelled the city to the second spot, making it the world’s second-most expensive metropolis.
The report, released on Tuesday, analyzed the cost of a basket of goods and services across 25 cities between November 2023 and March 2024. It focused on the consumption patterns of high-net-worth individuals (HNWIs), defined as those possessing at least US$1 million in investible assets.
London and Shanghai secured third and fourth place respectively, while Monaco rounded out the top five. Shanghai dropped one position from last year, while London climbed one place. The remaining cities in the top 10 include Zurich (6), New York (7), Paris (8), São Paulo (9), and Milan (10).
Notably, Singapore also holds the title of 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.”
The 2022 report, now in its fifth year, ranked Singapore in fifth position behind cities like London and Taipei. This year, Hong Kong climbed one position to become the second-most expensive city for property prices, replacing Shanghai in the rankings. It also emerged as the most expensive place to engage a lawyer, with a surge in the prices of many other luxury items. The price of a hotel suite jumped by 22.9 per cent, and ladies’ shoes rose by 12.7 per cent. However, the price of whisky declined by 18.8 per cent.
Shanghai, now ranked fourth, faced real estate market challenges last year, which Julius Baer believes affected consumer confidence. Nevertheless, it remains the most expensive city to indulge in a degustation dinner. Taipei, which held eighth place last year, fell out of the top 10. Bangkok and Jakarta also dropped in rankings, 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 price fluctuations only when converted to US dollars.
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 explained. Many Asian cities saw their rankings fall due to weaker currencies. Tokyo was hit the hardest, slumping to 23rd from 15th, as the yen sank to its lowest point in three decades. Zurich saw the biggest improvement in ranking, climbing to sixth place from 14th due to a stronger Swiss franc.
“This year’s report shows that currencies matter a lot,” Christian Gattiker, the head of research at Julius Baer, was quoted as saying by the South China Morning Post report.
Asia ranked as the second-most expensive region, driven by its economic growth, following Europe, the Middle East, and Africa, which were consolidated as one region by the Swiss bank. Mark Matthews, head of research for Asia-Pacific at Julius Baer, told the South China Morning Post that Asia is making significant strides in its development journey, showcasing 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 said. “Singapore, located in this dynamic environment, is leading the digital transformation,” he added.
The report highlighted healthcare as the top priority for HNWIs, with over 63 per cent of respondents in Asia citing health and well-being as their primary concerns. Wealthy individuals are planning to increase investments and indulge more in travel and fine dining, following the easing of pandemic-related travel restrictions. 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.
