Singapore was declared the most expensive city in the world for luxury living in the Global Wealth & Lifestyle Report 2023, published by Swiss wealth management firm Julius Baer Group LTD.

Singapore, which was in fifth place in 2022, came ahead of Shanghai and Hong Kong, which came in second and third place, respectively.

These were followed by London, New York, Monaco, Dubai, Taipei, Sao Paolo, and Miami.

Dubai moved into the top 10 for the first time, becoming the seventh most expensive city, relegating Zurich to 14th place.

“The Emirate is an exceedingly good performer in this year’s index, and the relocation of large numbers of wealthy individuals has affected property prices and demand,” the report said.

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Julius Baer’s Lifestyle Index ranks the world’s 25 most expensive by analyzing residential property, cars, business class flights, business school, luxury dining and other high-end amenities. This provides an overview of the relative cost of maintaining a high-net-worth lifestyle in various major urban centres.

The rankings were compiled by surveying high-net-worth individuals with bankable household assets of $1 million or more between February to March 2023.

Asia remains the most costly region in which to live well for the fourth year in a row.

Compared to 12 months ago, the overall price for its index of goods and services increased on average by 13 per cent in local currencies and by 6 per cent in USD, the report said.

Singapore attracts high-net-worth individuals

One of the first places in Asia to reopen its borders during the pandemic, Singapore’s attractiveness to high-net-worth individuals is reflected in rising prices that locals are now facing.

By the end of 2022, Singapore counted an estimated 1,500 family offices in the territory, twice the number of the previous year, added the report. At the moment, it tops the most expensive city globally for car prices.

“High living standards and ballooning demands on local infrastructure mean life here does not come cheap,” reads the Julius Baer report.

“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,” it added.

Earlier this year, it was reported that Singapore was fast-becoming a haven for wealthy Chinese nationals, following Beijing’s crackdowns on tech billionaires and tax-shy celebrities, as well stringent and lengthy Covid lockdowns.

Singapore saw a fresh influx of wealth since 2021 after it became one of the first Asian cities to significantly ease pandemic restrictions.

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Meanwhile, New York rose to fifth from 11th place last year, due to a strengthening dollar and a rebound from the pandemic.

MENA region

London slipped to fourth place from second. Brexit and the “ensuing turmoil” continue to tarnish UK’s reputation and London now faces increased competition from burgeoning financial centers such as Dubai and Singapore, added the report.

For the first time, Europe, the Midde East and Africa were ranked as the most affordable regions to live well, with European cities dropping in rankings.

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The survey by Julius Baer also found rising demand for travel and entertainment as pandemic restrictions were lifted. The cost of luxury items such as wine, benchmarked by a bottle of Château Lafite Rothschild 2018 vintage, and whiskey globally surged the most by 17.2% and 16.2% and respectively.

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“Experiential spending has increased with people embracing their freedom and indulging in social experiences,” quoted Julius Baer.

Other big avenues of luxury expenditure included hotel suites and business class flights.

The greatest price increases are in high-demand, premium consumables, as well as luxury cars and hospitality services. Hotel suites, business class flights, and fine dining all experienced significant price increases as the demand for travel and entertainment has surged.

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