Singapore has recently claimed the top spot as the most expensive city in the world for luxury living, surpassing both Shanghai and Hong Kong, according to a report by Swiss wealth manager Julius Baer Group Ltd. This significant jump in rankings reflects Singapore's ambition to become a leading global hub for the affluent.
Singapore's decision to reopen its borders early during the pandemic has greatly contributed to its appeal among high-net-worth individuals. As a result, local residents now face rising prices. In fact, by the end of 2022, Singapore had an estimated 1,500 family offices, double the number from the previous year. The city-state also holds the distinction of having the highest car prices globally.
Julius Baer's Lifestyle Index analyzes various factors such as residential property, cars, business class flights, business schools, and fine dining to determine the most expensive cities in the world. For the fourth consecutive year, Asia remains the costliest region for luxury living.
Notably, New York made a significant jump in the rankings, moving from the 11th to the 5th spot. This rise can be attributed to a stronger dollar and the city's post-pandemic recovery. On the other hand, London slipped from 2nd to 4th place due to the impact of Brexit and increased competition from emerging financial centers like Dubai and Singapore.
In a first for the report, Europe, the Middle East, and Africa emerged as the most affordable region for a high-quality lifestyle, resulting in European cities dropping in the rankings. Dubai, for the first time, entered the top 10 and secured the 7th spot, pushing Zurich to 14th place. The relocation of numerous wealthy individuals to Dubai has driven up property prices and demand, cementing its status as a "star performer" in this year's index.
As pandemic restrictions were lifted, there has been a surge in demand for travel and entertainment, leading to increased prices for luxury items such as wine and whiskey, which saw price hikes of 17.2% and 16.2% respectively.
The report highlighted the rising trend of experiential spending, as people embrace their newfound freedom and indulge in social experiences. However, there were exceptions to this trend, as the prices of bicycles, which had become prohibitively expensive during the pandemic, experienced a slight drop of 1.8%.
In conclusion, Singapore's ascent to the top of the luxury living rankings showcases its appeal as a global center for the wealthy. The report also sheds light on the shifting landscape of expensive cities worldwide, with New York, Dubai, and London experiencing notable changes in their rankings.
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