Hong Kong is now the world’s most expensive city for luxury consumers, according to a new report released on Thursday.
The report by Swiss private bank Julius Baer said the Asian financial hub was the least-affordable place in the world when it came to things such as fine dining, handbags, and wedding banquets. Hong Kong has now surpassed Shanghai, which was previously listed as the world’s least-affordable city, the report noted.
Asia has the top three most expensive cities in the world, with Shanghai and Tokyo in second and third place respectively in the report’s list of the world’s least-affordable cities.
The report, titled “Global Wealth and Lifestyle Report 2020”, surveyed the price of premium goods and services such as legal services, property and even whisky across 28 cities worldwide.
The report noted that Hong Kong had proved to be economically resilient despite months of protests dragging down tourist arrivals and retail sales, although this might change in the long term.
According to the Zurich-based bank’s report, the SAR ranks above the 90th percentile for property, beauty services, fine dining, business-class flights and legal fees.
By contrast, Mumbai offers exceptional value in almost all these areas, making the Indian city the ideal destination for luxury bargain-hunters.
Meanwhile, European cities still offer luxury consumers the best value, the report noted. The continent’s best value cities for luxurious living are Barcelona and Frankfurt, which were ranked 24th and 26th respectively. London remained the priciest city in Europe, it said.
Across the Pacific Ocean, services in North America are particularly costly due to high labor costs, while high tax rates have pushed up the price of premium items in Latin America.
