Shanghai most expensive city for luxury goods and services

Shanghai remains the most expensive city for luxury goods in the latest Julius Baer Lifestyle Index.
Shanghai remains the most expensive city for luxury goods in the latest Julius Baer Lifestyle Index.PHOTO: TIFFANY TAN

SINGAPORE - Shanghai remains the most expensive city for luxury goods, Bank Julius Baer said in its latest report published Wednesday.

There were also significant swings in its luxury goods and services basket compared with last year's findings.

The biggest changes were in the wine and handbag areas.

These findings are part of the latest Julius Baer Lifestyle Index, which the private bank has compiled annually since 2011.

The bank constructs a basket of goods and services that closely reflects the lives of high net worth individuals in Asia.

"It is clear that wine has hit the bottom of the barrel, with the largest shift in the index, and against the historical trend of approximately 4 per cent increase year-on-year," said the bank.

Data showed that in all markets where the wine could be located, they were down. This is also the case for the ladies handbags,which is down everywhere. One reason could be slowing economic growth, the bank noted.

The bank also suggested that it is possible that the rich may favour electric cars over the Mercedes-Benz in future, while the wealthy may be shunning the Lafite Rothschild for champagnes and whisky.

rachaelb@sph.com.sg