Asia Is Becoming the Center for Luxury Living, According to Report

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.

According to Julius Baer’s latest report, the title of the most expensive city for upper-class living goes 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.

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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.

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," wrote 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 percent in 2023, while the global wealth market is expected to grow by 8.5 percent 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 percent this year.

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. But whether regular folk will be able to keep up is uncertain.

If you’re one of the few HNWIs out there, here are the most expensive cities for luxury living:

1| Singapore
2| Shanghai
3| Hong Kong
4| London
5| New York
6| Monaco
7| Dubai
8| Taipei
9| Sao Paolo
10| Miami
11| Bangkok
12| Jakarta
13| Paris
14| Zurich
15| Tokyo
16| Milan
17| Sydney
18| Mumbai
19| Barcelona
20| Manila
21| Mexico City
22| Frankfurt
23| Santiago de Chile
24| Vancouver
25| Johannesburg