Singapore is the most expensive city in the world for spending on luxury goods for the third year running, while London edged out Hong Kong to take the second spot.
They were followed by Monaco and Zurich, while Shanghai — which topped the list in 2022 — dropped two spots to sixth, according to an annual report by Swiss wealth manager Julius Baer Group.
For the first time since the survey began in 2020, prices tracked by basket of luxury goods fell 2%, which Julius Baer described as “quite exceptional” since historically, high-end consumer prices have risen twice as fast as average consumer prices.
“In light of ongoing uncertainty, trade tensions, and tariffs, our findings represent the final moment ‘before’ the current situation,” said Christian Gattiker, head of research at the Swiss bank.
Next year’s report “will likely provide a fascinating ‘after’ perspective,” he said.
With the current “unpredictable nature” of the world, Singapore is valued for its stability and security, while in Hong Kong, a recent investment-for-residency program generated “significant interest” from wealthy individuals, Julius Baer said. Hotel suites prices rose 10.3% in Singapore, and fell 26.1% in Hong Kong.
The UK capital rose on the back of a 26.6% jump in the price of private education after legislative changes and a 29.7% gain in business class flights, according to the Swiss bank.
Still, London’s appeal as a centre for wealth had a “rather turbulent ride” over the past year with the abolition of non-domiciled residency status, it said.
This has helped cities such as Dubai, Milan, and Zurich, which have courted the global elite considering to move away from the UK, according to the report.
See also: Only 6% of Singapore consumers want to live longer: Manulife
Dubai rose five spots to seventh place and is now a “firm challenger” to the traditional bastions of wealth such as London, Monaco and Zurich, according to Julius Baer.
“The momentum of millionaires relocating to Dubai, which began during the pandemic, is predicted to continue,” the report said.
New York, ranked the eighth and is the only city in the Americas to feature in the top 10.
Sao Paulo and Mexico City took the greatest tumbles in the survey, with the former falling seven places to 16 and the latter five places to 21.
The luxury sector is facing a “downturn” following an “endless buying spree” amid higher interest rates, slowing economic growth and a looming trade war, the report said.
The biggest driver of price declines was technology. Bucking the trend was business class flights which jumped 18.2%.
Julius Baer’s Lifestyle Index ranks 25 cities by analysing residential property, cars, business class flights, school, degustation dinners and other luxuries. The bank surveyed high-net-worth individuals with bankable household assets of US$1 million ($1.28 million) or more from February to March 2025.
