Singapore has risen to the top of the list of the most expensive cities in the world for luxury living for the first time, as it competes to be a leading worldwide center for the wealthy. According to a survey by Swiss investment management Julius Baer Group Ltd, the city-state rated fifth in 2022, leapfrogging Shanghai and Hong Kong, which are ranked second and third, respectively.
Singapore’s allure to high-net-worth persons is reflected in soaring prices that residents now face, as it was one of the first cities in Asia to reopen its borders during the pandemic. According to the report, Singapore will have an anticipated 1,500 family offices by the end of 2022, which is double the number from the previous year. It is the most expensive city in the world in terms of car prices.
“High living standards and ballooning demands on local infrastructure mean life here does not come cheap,” according to the report released Tuesday. “Residential property is in extremely high demand, and punitively taxed cars and essential health insurance are 133% and 109% more expensive than the global average respectively.”
Asia tops luxury living
Julius Baer’s Lifestyle Index analyzes residential property, vehicles, business class flights, business school, degustation dinners, and other pleasures to rank the world’s 25 most expensive cities. For the fourth consecutive year, Asia was the most expensive location for luxury living. Another notable gainer was New York, which jumped from 11th to fifth this year thanks to a stronger dollar and a recovery from the pandemic.
London dropped from second to fourth position. According to Julius Baer, Brexit and the “ensuing turmoil” have further harmed the UK’s reputation, and London now confronts stiff competition from rising financial centers such as Dubai and Singapore. Europe, the Middle East, and Africa are the cheapest regions to live comfortably for the first time since the survey began, with European cities sliding in rankings.
Dubai broke into the top 10, becoming the seventh most expensive city, relegating Zurich to 14th place. According to Julius Baer, the Emirate is a “star performer” in this year’s index, and the relocation of a huge number of wealthy individuals has affected property prices and demand.
Here’s the list of the world’s most expensive cities for luxury living
Post-pandemic: Travel, entertainment, wine, and whiskey surged
According to the report, once epidemic restrictions were withdrawn and freedom was restored, there was an increase in demand for travel and entertainment. Wine, as measured by a bottle of Château Lafite Rothschild 2018 vintage, and whiskey increased the most globally, by 17.2% and 16.2%, respectively.
“Experiential spending has increased with people embracing their freedom and indulging in social experiences,” said the report.
Hotel suites and business-class flights were also significant winners. However, there were some exceptions. Bicycle prices fell by 1.8% after becoming “hugely expensive” during the outbreak. Julius Baer surveyed high-net-worth individuals with bankable household assets of $1 million or more between February to March 2023.