Hong Kong tops Asia’s most expensive cities for ‘luxury living’
Hong Kong overtook Shanghai as the most expensive city for luxury living in Asia, according to Julius Baer’s most recent Wealth Report on the region.
The report, which looks at the prices people with a net worth of US$1m or more pay for 22 items typically purchased by this group, shows that the cost of luxury living increased by 1.42% on an aggregate basis in US dollar terms, compared to a 1.68% contraction in 2016.
In a statement, the Swiss private bank noted that this “upward trajectory of the index” pointed to a “sustained demand for luxury goods and services in Asia”.
With respect to Hong Kong, although the price of goods and services as measured by the researchers rose just 1% during the year, soaring residential property prices pushed the jurisdiction up the index.
With prices per square metre of prime Hong Kong residential real estate running at US$51,594, Hong Kong prime real estate is 2.69 times more expensive than the Asian average (US$19,150), the report notes.
Hong Kong is also the most expensive city for fine dining and business class flights, the Julius Baer research reveals. (This year is the first time the Julius Baer researchers have included the cost of fine dining in their research, explaining that it is being included “to reflect the growing propensity [of] HNWIs to spend on experiences”.
In addition to Hong Kong and Shanghai, the index looked at the price of living a luxurious lifestyle in Singapore, Mumbai, Taipei, Jakarta, Manila, Seoul, Kuala Lumpur, Bangkok and Tokyo.
To read more about the 78-page Julius Baer report and to download a copy, click here.