The continent of Asia is the most expensive region in the world for the richest. Even though the world is hit by the COVID-19 pandemic crisis, a number of cities in Asia have been able to keep the prices of a number of goods high.
Quoting from CNBC, Tuesday (13/4/2021), in the 2021 Global Wealth and Lifestyle Report, there are 25 cities in the world that are the most expensive cities. The report released by Julius Baer Bank noted that in the top five there are four Asian cities that are the world’s most expensive cities for the rich in Asia, including Shanghai, Tokyo, Hong Kong and Taipei.
China Ranks First
Shanghai, China rises to the top of the 25 cities in the world being named the most expensive places to live as the wealthy. Hong Kong, number one last year, slipped to third.
Tokyo in Second Position
Meanwhile Tokyo, Japan remains stable in second position. Meanwhile, Taipei, Taiwan is in fifth position. While the fourth place is placed by Monaco, a small, wealthy country in Western Europe.
US is Cheapest Region
Europe and Middle East came in second, while the US which has been hit by the pandemic emerged as the cheapest region. As the US and Canadian dollars fell against other major global currencies.
The ranking is based on the price of a number of luxury items purchased by wealthy people in 25 cities around the world. This year, the list saw major changes, with four out of 18 items being replaced as the pandemic changed consumer spending habits.
The four items, personal trainers, wedding banquets, Botox, and piano, are out of the list of the most expensive items replaced by bicycles, treadmills, health insurance, and technology packages, including laptops and phones.
“During a year hit by a global lockdown, personal technology and treadmills soared in popularity, while prices for women’s shoes plummeted. Going forward, we think these items will continue to be the most expensive items,” the report said.
Overall, the luxury items that experienced the biggest price decline in terms of US dollars were women’s shoes, down 11.7%, hotel suites by 9.3%, and wine by 5.3%. Meanwhile, 11.4 percent of business class flights, 9.9 percent of whiskey, and 6.6 percent of watches experienced the largest increase.
The report predicts Asia will maintain its fortress as the world’s most expensive region for the rich for the next few years. This is expected because the economic growth continues at a fast pace.
China is predicted to remain the world’s leading luxury goods market as wealthy Chinese consumers dominate. By 2025, China is expected to control 47% -49% of the luxury goods market, compared to the US 16% -18% and Europe 12% -14%.
