The fifth edition of the Global Wealth and Lifestyle Report reveals that while cities worldwide continue to see rising costs in 2024, affluent individuals remain committed to investing in their lifestyles, families, and futures.
This year, price hikes have moderated to 4% on average in US dollar terms, down from 6% in 2023. The increase was more pronounced for goods, rising by 5%, compared to a 4% uptick in services. Despite ongoing urban inflation, the past year has seen a stabilisation in inflation rates globally.
Key findings from the Global Wealth and Lifestyle Report, which uses the Julius Baer Lifestyle Index to assess the cost of living well in 25 cities globally - including Johannesburg, highlight significant shifts influenced by currency fluctuations.
Currency strengths, like the Swiss franc, and weaknesses, such as the Japanese yen, have notably impacted city rankings when converted to USD for global comparisons. The weak rand has kept Johannesburg at the bottom of the list.
Despite cost escalations, high-net-worth individuals (HNWIs) continue to spend notably on hospitality, fashion, and luxury items. Fashion and jewelry prices saw the steepest rise at 9.6%, driven by increased raw material and operational costs over several years.
Conversely, select categories experienced price declines, including bicycles (-6.4%), whisky (-1.0%), and business class flights (-1.7%).
In the Asia-Pacific (APAC) region, which hosts two of the world's priciest cities — Singapore and Hong Kong — there have been notable shifts.
Hong Kong rose to second place globally, driven by soaring property costs, while Shanghai slipped to fourth amid real estate market challenges and consumer confidence shifts. Tokyo's drop to 23rd reflects currency impacts despite stable local costs.
Mark Matthews, Head of Research APAC at Julius Baer, noted APAC's resilience and growth driven by technological advancements in China, India, and Southeast Asia. Singapore, a global leader in digital transformation, maintains its allure for HNWIs due to political stability and a business-friendly environment.
Christian Gattiker, Head of Research at Julius Baer, said that the pivotal role of currencies in reshaping city affordability perceptions. Tokyo's currency depreciation illustrates how exchange rates can alter living costs significantly for international perspectives.
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