Move Over, Europe: Asia Is Now the Ideal Place for the Luxurious
Even Manila is part of the list.
Just a few years ago, Europe was the face of luxury living, but times are changing. According to the Julius Baer Global Wealth and Lifestyle Report 2023, Asia is the new stronghold for all things luxury.
Julius Baer's latest report gives the title of the most expensive city for upper-class living to Singapore, followed closely by Shanghai and Hong Kong. The top three most expensive cities for high net-worth individuals (HNWIs) were all located in Asia, as the region is expected to be the fastest-growing market for luxury goods and services in 2023.
Asian cities took nine spots on the 25-city list, and surprisingly enough, the Philippines made the cut. Manila was ranked as the 20th most expensive city for luxury living, beating Frankfurt, Vancouver, and Mexico City.
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If you're one of the few HNWIs out there, here are the most expensive cities for luxury living:
- Singapore
- Shanghai
- Hong Kong
- London
- New York
- Monaco
- Dubai
- Taipei
- Sao Paolo
- Miami
- Bangkok
- Jakarta
- Paris
- Zurich
- Tokyo
- Milan
- Sydney
- Mumbai
- Barcelona
- Manila
- Mexico City
- Frankfurt
- Santiago de Chile
- Vancouver
- Johannesburg
It's important to note that the index measures wealth with a basket system that compares the relative cost of 20 select luxury goods and services paid by HNWIs globally. These items range from wine and whiskey to LASIK and business class flights. Based on this unique metric, the index found that Singapore's cost of living for HNWIs makes it the most expensive place to live in the world.
"Long considered liveable, stable, and cosmopolitan, Singapore is now vying to become a leading global center for the wealthy," it said in the Julius Baer report.
Meanwhile, the cost of luxury items in Manila was on par with HNWI hubs around the world despite the Philippines' struggle with poverty and wealth inequality. On that note, the Julius Baer report found that as the world is bouncing back from the pandemic, high-net-worth individuals are expected to see their wealth grow by 7.8% in 2023, while the global wealth market is expected to grow by 8.5% this year, reaching $530 trillion.
In 2023, the average wealth of an HNWI is expected to reach $2.3 million, which they'll likely spend on luxury goods and services, which will grow by 6.5% this year.
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In short, the rich will get richer, but with an added concern for health and wellness. After the pandemic, HNWIs are increasingly aware of the link between health and wealth and are making moves to prioritize both, which is no doubt a byproduct of the pandemic. "Future-proofing" is also on the minds of HNWIs as analysts observe the rise of legacy planning and succession among HNWI families. Singapore has spent the last year harnessing this as the city-state doubled the number of family offices in the territory to 1,500.
There's a lot to unpack in this new wealth report, but the gist is simple enough: HNWIs are expecting to grow their wealth as the world gets more expensive—whether or not the regular folk will be able to keep up is uncertain.