Singapore holds its position as the world’s most expensive city for luxury goods. This marks its third consecutive year at the top. London, surprisingly, edged out Hong Kong for second place. These findings come from the annual Julius Baer Group Ltd. report. Monaco and Zurich followed closely behind. Shanghai, which led the list in 2022, dropped to sixth place.
For the first time since 2020, luxury good prices fell. The tracked basket of goods saw a 2% decrease. Julius Baer described this as “quite exceptional.” Historically, high-end consumer prices have risen much faster. They typically outpace average consumer prices significantly.
“Our findings represent the final moment ‘before’ the current situation,” said Christian Gattiker. He is head of research at the Swiss bank. This considers ongoing uncertainty and trade tensions. Next year’s report “will likely provide a fascinating ‘after’ perspective,” he added, indicating potential market shifts in the luxury sector.
WHY CITIES CLIMB AND FALL
The world remains highly unpredictable. Singapore is valued for its stability and security. Meanwhile, Hong Kong saw significant interest. A new investment-for-residency program attracted wealthy individuals interested in luxury. Hotel suite prices in Singapore rose 10.3%. Conversely, they fell 26.1% in Hong Kong.
London’s climb resulted from major price jumps. Private education costs rose 26.6% there. Legislative changes drove this increase. Business class flights also surged 29.7%. Yet, London’s appeal had a “turbulent ride.” The abolition of non-domiciled residency status affected it.
EMERGING LUXURY HUBS
This shift benefited cities like Dubai, Milan, and Zurich. They actively court the global elite seeking luxury lifestyles. Many wealthy individuals consider moving from the UK. Dubai notably rose five spots to seventh place. It is now a “firm challenger” to traditional wealth bastions. These include London, Monaco, and Zurich.
“The momentum of millionaires relocating to Dubai is predicted to continue,” the report stated. This trend began during the pandemic. New York ranked eighth globally. It is the only city in the Americas within the top 10. Sao Paulo and Mexico City experienced significant tumbles. Sao Paulo fell seven places to 16th. Mexico City dropped five spots to 21st.
The luxury sector now faces a “downturn.” This follows an “endless buying spree.” Higher interest rates contribute to this. Slowing economic growth also plays a part. A looming trade war adds further pressure. The biggest driver of price declines was technology. Nonetheless, luxury business class flights bucked this trend. Their prices jumped an impressive 18.2%.
Julius Baer’s Lifestyle Index ranks 25 cities. It analyzes various luxury items. Residential property, cars, and business class flights are included. School fees and degustation dinners also feature. The bank surveyed high-net-worth individuals. These individuals possess $1 million or more in bankable assets. The survey occurred from February to March 2025. This comprehensive report offers critical insights into global wealth and spending on luxury spendinggoods.
