Singapore is the most expensive city in the world in 2024 for people seeking to “live well,” according to a new report by global wealth management firm Julius Baer.
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Now in its third year, the Julius Baer Lifestyle Index polls affluent individuals worldwide to gain an understanding of their financial priorities and consumption patterns. The survey also analyses the cost of a basket of goods and services that represent a high-quality lifestyle in 25 global cities.
Across all surveyed regions, HNWIs are demonstrating a heightened demand for leisure travel, fine dining experiences, and luxurious hotels, with some variations per region.
In APAC, for example, spending is primarily directed toward hospitality and healthcare, indicating that affluent individuals are heavily investing in their well-being.
In the Middle East, spending is concentrated on luxury goods such as clothing and watches, whereas in Europe the emphasis is on experiential indulgences such as fine dining and high-end hotels.
Singapore and Hong Kong continue to dominate the rankings as costly hubs, though other cities in the Asia-Pacific region have dropped in the overall standings due to lower rankings for cities like Tokyo.
Singapore, claiming the top spot once again, remains the world’s most expensive city.
Its stability is reflected in the minimal change in the average price of luxury goods year-on-year, with inflation levels holding steady at 4.8 percent throughout 2023. The Singaporean government has introduced several tax incentives to attract the super-wealthy, including creating a conducive environment for establishing and operating family offices.
But such high standards come at a price, according to the report.
Approximately half of the items in the Lifestyle Index fall within the category of the five most expensive globally.
Visitors to Singapore should expect exorbitant airfares, as the city secures the fifth position in this year’s luxury travel ranking. Owning a car in Singapore is also a costly affair, with prices a staggering 155 percent higher than the global average.
Fine dining experiences in the city also come at a premium, placing Singapore in the fourth spot for dining expenses.
Interestingly, over the past 12 months, wealthy individuals in Singapore have displayed a preference for discreet displays of wealth. Sales of luxury goods such as watches, cars, and apartments have witnessed a decline in the city, indicating a shift in consumption patterns within this affluent segment.
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According to the report, the prices of goods across the globe grew faster than services this year, with an average increase of 5 percent for goods in USD terms, and a 4 percent rise for services. Prices witnessed a near-universal increase across all categories, except for bicycles, whiskey, and business class flights, which experienced minor drops. The steepest price hikes were observed in premium consumer items such as fashion and jewellery.