Shanghai has topped the list of the world’s most expensive cities to live in for the rich, as per Julius Baer Group’s 2022 global wealth and lifestyle report. London, the capital of the UK, has been ranked second. Taipei, the capital of Taiwan, is number three on the list, while Hong Kong and Singapore have been ranked fourth and fifth.
The report was released on June 15. New York City has slipped out of the list of the top ten most expensive cities. Notably, purchases in Shanghai are now more expensive than anywhere else in the world. They are even more expensive than Hong Kong, the former most expensive city in the world.
For the ultra-rich living in some of the world’s most expensive cities, like Shanghai; the prices of luxury items are surging over the past year. It has taken a bite out of their vast purchasing power. On the other hand, for the wealthy individuals who reside in London and New York; the higher cost of designer handbags, shoes, suits, and watches doesn’t even keep up with their countries’ overall inflation rates.
Why these cities are so expensive?
The global divergence in price growth and monetary policy is one of the key factors as per the Julius Baer Group Ltd.’s 2022 global wealth and lifestyle report. It ranks the world’s most expensive cities by analyzing the price of residential property, cars, airfare, and other luxuries. Shanghai has once again topped the list. While London took the second position from Tokyo. New York is at the 11th position, down one spot from last year’s survey.
The findings highlight that the rich aren’t immune to inflation. It has reached 8.6% in the US and 9% in the UK. Moreover, wealthy individuals are also disproportionately likely to own stocks, which have tumbled as central banks raise interest rates to address price growth. According to the Julius Baer report,
“While the financial situation of many high-net-worth individuals has actually improved over the last year, the concurrent increase in the basket of goods and services that make up our lifestyle index means the ‘money illusion of previous years still lingers.”
Still, “our survey reveals a mildly optimistic post-pandemic picture,” it said. “The wealthy are spending normally again.”
Here’s a list of the most expensive cities to live in in 2022
- Hong Kong
- New York