Shanghai Is Now The Most Expensive City in The World

[Photo/Forbes]

China is expected to become the world's biggest economy by 2028, but its commercial capital is already there: Shanghai is now the most expensive city in the world. 

Such is the amount of private wealth in Shanghai that exclusive purchases there are now more expensive than anywhere else in the world, including Hong Kong, the former world's most expensive city.

These purchases include "degustation" dinners, lawyers and business class flights, according to Julius Baer, which looked at the cost of "a basket of goods and services that reflect the HNWI lifestyle."

The Swiss bank wants to know what its clients—the super-rich—buy and how much it costs them in various cities around the world. Among its curious findings was that treadmills are more expensive in Shanghai than anywhere else, but health insurance is cheaper. London is the most expensive place for Lasik and New York for hotel rooms.

But actually, Shanghai is the world's most expensive city because there are now a lot of very rich people living there. It has shot up this week's Forbes billionaire rankings. It now has the sixth largest concentration of billionaires in the world having ranked 18 last year.

The most expensive cities for the wealthy 2021 

[Photo/Forbes]

Asia continues to be the most expensive place in the world to be rich, according to a new report, which saw the region’s resilience to the Covid-19 pandemic hold high prices steady.

The world’s most populous continent remained the most costly for high-and ultra-high net worth individuals (HNWIs) in Bank Julius Baer’s Global Wealth and Lifestyle Report 2021 as its swift response to the global health crisis and overall currency stability maintained the cost of luxury goods in the region.

Four of the five most expensive cities for HNWIs — individuals with $1 million or more in investible assets — are now in Asia, according to the annual report.

Shanghai, China jumped to the top of the ranking of 25 global cities to be named the most expensive place to live as a wealthy individual. Hong Kong, last year’s number one, slipped to third place, while Tokyo, Japan held steady in second position.

Monaco, a small wealthy state in Western Europe, and Taipei, Taiwan rounded out the top five.

[Photo/Forbes]

But how comes the city Shanghai stole the "world's most expensive" title from Hong Kong? Having once been a shopping destination for wealthy Chinese tourists, now few venture to Hong Kong to spend their wealth.

The last two years of pro-democracy protests put many off the special administrative region. But now mainland Chinese shoppers have all the luxury shops they need at home. Plus, Julius Baer says, Hongkongers are "less interested in high-profile labels as indicators of status."

U.S. and European cities, on the other hand, have become cheaper, largely thanks to an exodus of their wealthy residents to the countryside over the past year. Prime real estate markets in both London and New York struggled last year as wealthy buyers headed for the hills. Therefore, both cities are cheaper than a year ago.

It is the very opposite of what is going on in China and other Asian countries whose cities have weathered the Covid-19 pandemic in better shape. But, that, as this study shows comes at a cost.

Source: Forbes

 

COVID-19 Update Apr. 14th.

1. Shanghai:

+0 local case

+15 imported COVID-19 cases

2. Chinese mainland:

+11 imported COVID-19 cases

+1 local case in Yunnan

For the latest policy&news updates, scan the code below to follow AnyShanghai! 

You can also get local tips & events in the city.

If you have any questions about China visa applications(work visa, PU letter, company registration and more), please contact our visa consultant Annie (WeChat ID: AnyHelper-ss).

You might also like ▼

Expat-Friendly Businesses

Expat Gamer is a gamer community incubated by AnyHelper!

If you are a game lover, follow Expat Gamer now!

Free promotion/network sharing for expat-friendly businesses. Learn more HERE.

AnyShanghai Advisors

AnyShanghai Advisors provide professional suggestions and solutions to the expat communities in Shanghai. If you have questions related to their expertise, feel free to contact them.

SWIPE to click name card or extract code for profiles

Maria Pastorelli (Coaching & Training)

We have 30+ advisors so far,

Scan code above to view more advisors for other fields!

Get daily news, tips, and events in Shanghai

Connect with expat communities and industry experts

Click "Wow" if you like this article