Asia is the most expensive region in the world, especially for residential properties. Hong Kong, Tokyo, Singapore, Shanghai and Taipei are among the ten cities in the world with the most expensive housing, in a group headed by Monaco, and in which cities such as London, New York, Sidney and Los Angeles are also found. In fact, the Asian continent is home to the most expensive cities in the world: in addition to the five above, there is also Bangkok, the place in the world where women's shoes and men's fashion are prohibitively expensive. Similarly, in terms of luxury cars, eight of the ten most expensive cities in the index are in Asia, Jakarta, Manila and Bombay are added to those listed above. However, for smaller products, such as a bottle of whiskey or wine, Asia offers better prices. These conclusions are drawn from the first study on global wealth and lifestyle, Global Wealth and Lifestyle Report 2020, prepared by the Swiss bank Julius Baer, with data collected between June and September 2019.
In Asia are the most expensive city in the world, Hong Kong, and the cheapest within a ranking of 28, Bombay. Hong Kong ranks above the 90th percentile globally for property, beauty services, fine dining and business class flights. In terms of legal fees, it turns out to be the most expensive. For its part, Shanghai ranks second in the region and globally, although housing prices and hotels are cheaper than Hong Kong, it is a very expensive destination for products such as watches and women's bags, and services such as legal fees or hiring a personal trainer. On the contrary, it is the cheapest in jewelry. At the opposite pole, Mumbai offers exceptional prices on almost all items and certain services, such as men's fashion, hiring a wedding reception or a physical trainer.
European cities are the cheapest, according to the aforementioned analysis. The best valued to lead a well-to-do life are Barcelona and Frankfurt. The luxury property market in Barcelona remains relatively cheap compared to its European counterparts, ranking behind Monaco, which tops the list, followed by London, Paris, Zurich, Vienna, Moscow, Frankfurt and Milan. For its part, Frankfurt, the European city with the most expensive watchmaking, is more competitive in wines and in the price of hotel suites.
On the other hand, London is the most expensive city on the European continent, especially in the price of flights in superior class, in the rates of certain services, such as lawyers' fees or laser optic surgery. It is also expensive to dine in a gastronomic restaurant, buy a house, make a suit or hire a physical trainer. The British capital is the least expensive of the European cities analyzed in the study to buy a car, or also to buy a watch or a bottle of whiskey. Zurich occupies the second position in terms of the high price of its services, especially those related to personal well-being, and the hotel and restaurant sectors. On the other hand, in jewelry and watches it is the least expensive.
America occupies the second position with the most expensive cities in the world, with New York in the lead, while Vancouver boasts of being the most affordable city in the region. As a whole, this continent seems relatively cheap compared to Asia. High real estate prices in North America are offset by lower values in South America. In fact, North America is especially expensive for its services, due to high labor costs, while high tax rates drive up the prices of luxury goods in Latin America.
In South America, residential properties stand out for their affordable prices in Rio de Janeiro and Mexico City, offsetting the high prices of goods and services. According to the study by Julius Baer, housing in the Brazilian and Mexican cities is 7% and 5%, respectively, with respect to the most expensive city in the index. Luxury vehicles are also expensive in both places, as are whiskey, fine wine, jewelry, and women's bags and shoes. However, other items, such as hotel suites or wedding receptions, are the cheapest in these two cities.
Because having a wedding reception, as well as buying a property, staying in a hotel suite, having a beauty treatment, eye surgery, hiring a lawyer or a personal trainer is much more expensive in New York, where The cheapest that can be purchased, among the products and services analysed, is a bottle of wine, followed by whiskey or a pair of women's shoes. This is due, say the wealth manager's experts, to the fact that local taxes and charges for certain services, especially in the United States, are burdensome for the consumer. Miami, for example, is the most expensive in the entire continent when it comes to purchasing a flight in business class, while Los Angeles is if you want to enjoy a high-end dinner. And Mexico City is the most expensive if you want to buy some women's shoes.
The report places special emphasis on the issue of conscious consumption, or what is the same, less is more, which favors the generation of less waste and more experiences on products. The sustainable trend is taking hold, and is on the agenda of governments, regulators and central banks. And it concludes that Europeans and North Americans are less likely to pay more for responsibly produced products, since there is a regulation in this regard that offers guarantees. Therefore, it highlights that Asian and Latin American consumers are the most likely to choose a product for its sustainability credentials. “The conscious consumer, which began with the millennials and continues with the Alpha generation, is here to stay and we have seen a rapid evolution of the current offer and large investments in innovation in all industries in response to this growing demand” , says Nicolas de Skowronski, head of wealth management solutions at Julius Baer.
