The “Global Wealth and Lifestyle Report 2024,” recently released by the Julius Baer Group, shows that Hong Kong’s global ranking rose from third to second, while its real estate prices remain the second highest in the world. It is also the most expensive city to hire a lawyer.
London has returned to the top three, and Shanghai dropped from two to number four.
The report points out that although the average price increase in U.S. dollars has slowed from 6 percent in 2023 to 4 percent this year, the current year’s price increase in commodities is still higher than that of services. Among them, commodity prices have gone up by an average of 5 percent, which is 1 percentage point higher than that of services.
According to the report, the top ten most expensive cities in the world, in descending order, are Singapore, Hong Kong, London, Shanghai, Monaco, Zurich, New York, Paris, Sao Paulo, and Milan.
While Asia Pacific still boasts the two most expensive cities in the index, the region is no longer the most expensive overall due to falling prices in several cities. Notable declines include Tokyo, which dropped from 15th to 23rd; Shanghai, which fell from 2nd to 4th; Bangkok, which slid from 11th to 17th; and Jakarta, which fell from 12th to 14th.
The report examines the effect on high-net-worth individuals. It considers a basket of 20 items bought or used by affluent consumers, including residential property, private education, high-end consumer goods, and the cost of health care; it also places a higher weighting on properties and cars. Based on the cost of the basket of goods, it then compares the 25 major cities around the world in U.S. dollar terms.
Currency changes have played a big part in the cities’ positions as they are compared in U.S. dollar terms.
Zurich, Milan, Sydney, Paris, and Mexico City are among the risers, while Tokyo, Bangkok, Dubai, and Taipei are among the fallers. However, Tokyo and Mexico City’s costs have barely changed, and their change in position is largely due to their currency’s change in the U.S. dollar exchange rates. New York dropped from fifth to seventh, and Miami dropped from tenth to fifteenth, mainly due to the strong U.S. dollar’s effect.
Globally, the prices of jewelery, high-end ladies’ handbags and shoes, and men’s suits have increased by about 9 percent. Cars, watches, and technology products have increased by about 5 percent, while business travel and residential property have only increased or decreased slightly in price in U.S. dollar terms. The cost of the packages in most cities has risen by about 4 percent.
