Luxury Spending: Singapore Tops, London Edges Hong Kong in Expensive Cities List

Singapore is the most expensive city for luxury spending for the third year running, followed by London and Hong Kong. Prices tracked by a basket of luxury goods fell 2% for the first time since the survey began in 2020. Dubai rose five spots to seventh place and is now a "firm challenger" to traditional wealth centers. The luxury sector is facing a downturn due to higher interest rates, slowing economic growth, and a looming trade war.

Singapore has retained its title as the most expensive city in the world for luxury spending for the third consecutive year, according to the latest report by Swiss wealth manager Julius Baer Group Ltd. [1] London followed closely in second place, edging out Hong Kong, while Monaco and Zurich rounded out the top five. Shanghai, which topped the list in 2022, dropped to sixth place.

This year, prices tracked by a basket of luxury goods fell 2% for the first time since the survey began in 2020. Christian Gattiker, head of research at Julius Baer, attributed this decline to ongoing uncertainty, trade tensions, and tariffs. He noted that next year's report will likely provide a "fascinating 'after' perspective" on the current situation.

Singapore's appeal as a center for wealth is attributed to its stability and security, while in Hong Kong, a recent investment-for-residency program generated significant interest from wealthy individuals. Hotel suite prices in Singapore rose by 10.3%, while they fell by 26.1% in Hong Kong. London's position was bolstered by a 26.6% jump in private education costs and a 29.7% gain in business class flights.

However, London's appeal as a center for wealth has been "rather turbulent" over the past year due to the abolition of non-domiciled residency status. This has helped cities such as Dubai, Milan, and Zurich, which have courted the global elite considering to move away from the UK.

Dubai rose five spots to seventh place, positioning itself as a "firm challenger" to traditional wealth centers like London, Monaco, and Zurich. The momentum of millionaires relocating to Dubai, which began during the pandemic, is predicted to continue.

New York, ranked eighth, 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, falling seven and five places, respectively.

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 biggest driver of price declines was technology, while business class flights bucked the trend, jumping 18.2%.

Julius Baer's Lifestyle Index ranks 25 cities by analyzing residential property, cars, business class flights, school, degustation dinners, and other luxuries. The bank surveyed high-net-worth individuals with bankable household assets of $1 million or more from February to March 2025.

References:
[1] https://www.bloomberg.com/news/articles/2025-07-14/singapore-london-are-costliest-cities-for-luxury-spending
[2] https://ca.finance.yahoo.com/news/trump-tariffs-watch-sellers-hard-050336936.html
[3] https://macaonews.org/news/lusofonia/trump-brazil-brics-trade-war-tariffs/