Research firm Julius Baer conducted its survey on high-net-worth individuals possessing bankable household assets amounting to $1 million or more, within the timeframe of February to March 2023.
Image-: Hindustan Times.
In a startling turn of events, Singapore has soared to the pinnacle of the rankings as the most exorbitant city in the world for opulent living. This unprecedented achievement signifies the city-state’s aspirations to establish itself as a preeminent global hub for the affluent. Strikingly, Singapore has outstripped Shanghai and Hong Kong, which now occupy the second and third positions respectively, as revealed by a report published by the esteemed Swiss wealth manager, Julius Baer Group Ltd.
Having swiftly reopened its borders amid the throes of the pandemic, Singapore’s allure to high-net-worth individuals is vividly evident in the mounting prices faced by the local populace. The report discloses an estimated tally of 1,500 family offices in Singapore by the close of 2022—a twofold increase from the preceding year. Moreover, it emerges as the most extravagant city worldwide for automobile prices.
“The exalted living standards and burgeoning demands on local infrastructure conspire to render existence in this locale a costly affair,” asserts the report unveiled on Tuesday. “The residential property sector is teeming with insatiable demand, while the costs of taxed vehicles and indispensable health insurance surpass the global average by a staggering 133% and 109% respectively.”
Julius Baer’s Lifestyle Index adjudges the 25 most lavish cities globally by scrutinizing facets such as residential property, automobiles, business class flights, business schools, exquisite culinary experiences, and other indulgences. Asia, for the fourth consecutive year, remains the most dear region for luxurious living. Notably, New York has experienced a remarkable ascent, climbing from the eleventh to the fifth position, propelled by a resilient dollar and a resurgent recovery from the perils of the pandemic.
Alas, London has relinquished its former glory, descending to the fourth rank from its erstwhile pedestal at second place. The report attributes this decline to the ramifications of Brexit and the subsequent turmoil, which continue to erode the United Kingdom’s reputation. Furthermore, London now confronts formidable competition from burgeoning financial centers such as Dubai and Singapore, according to Julius Baer. For the first time since the inception of this report, the most affordable region for a life of opulence is Europe, the Middle East, and Africa, with European cities tumbling down the rankings.
In an unforeseen twist, Dubai has catapulted into the top ten, firmly establishing itself as the seventh most extravagant city, consequently relegating Zurich to the fourteenth spot. The Emirate emerges as a “star performer” in this year’s index, with the influx of numerous affluent individuals precipitating a surge in property prices and demand, as cited by Julius Baer. The survey identifies an upsurge in the desire for travel and entertainment as pandemic restrictions are lifted, thereby reinstating freedom. Astonishingly, the prices of luxury items like wine, exemplified by a bottle of the esteemed Château Lafite Rothschild 2018 vintage, and whiskey have experienced substantial leaps of 17.2% and 16.2% respectively.
“Expenditure on experiential indulgences has witnessed an upswing as individuals embrace their newfound freedom and wholeheartedly immerse themselves in social endeavors,” states the report. Notable beneficiaries of this trend include luxurious hotel suites and business-class flights. However, there are exceptions to this pattern, as evidenced by the decline of bicycle prices by 1.8%, which had hitherto skyrocketed during the pandemic. Julius Baer conducted its survey on high-net-worth individuals possessing bankable household assets amounting to $1 million or more, within the timeframe of February to March 2023.
