Singapore tops global list for costliest luxury spending, London overtakes Hong Kong

For those who indulge in a luxury lifestyle without budget constraints, certain global cities stand out as the priciest destinations to satisfy high-end tastes.

However, these lavish experiences come with substantial costs, varying significantly by location.

Findings from the report

According to the latest Global Wealth and Lifestyle Report by Julius Baer, Singapore has retained its position as the world's most expensive city for luxury spending for the third consecutive year. London has now surpassed Hong Kong to claim the second spot. The report evaluates the cost of luxury goods and services most relevant to individuals with a net worth of at least $1 million in bankable assets. This year's study was conducted between February and March 2025, amid notable shifts in global economic trends.

Why Singapore leads the rankings

Singapore continues to attract wealthy individuals, thanks to its political stability, economic strength, and investor-friendly environment. The city ranked highest in luxury spending categories such as designer footwear and fine jewellery. Moreover, local spending on essentials like healthcare, education, and dining also contributes to its top position. The report notes that although the global economy has adjusted to a "new normal" post-pandemic, inflation, geopolitical unrest, and rising living costs continue to influence spending patterns.

London climbs to second place

London moved up to second place in the rankings, overtaking Hong Kong. Analysts attribute this rise partially to the strength of the British pound in the post-Brexit landscape. Other European cities also gained positions this year, including Zurich, which now ranks sixth. While Europe, the Middle East, and Africa were once considered more affordable, unfavorable currency shifts and weakening economic performance have made them more expensive for luxury living.

Top 10 cities for luxury expenditure

Among American cities, only New York retained a spot in the top 10, holding steady at number eight. Meanwhile, Mexico City fell five places to 21st, and Sao Paulo dropped seven spots to 16th, highlighting decreased luxury spending and economic instability in Latin America.

Here are the ten most expensive cities for luxury spending in 2025, according to Julius Baer:

1. Singapore
2. London
3. Hong Kong
4. Shanghai
5. Monaco
6. Zurich
7. New York
8. Paris
9. Sao Paulo
10. Milan