The Asian Wealth Management landscape

Asia is Julius Baer’s second home market and a powerhouse of global wealth creation. The region’s pool of investable assets held by High Net Worth Individuals (HNWI) is on track to reach USD 14.5 trillion by 2020, representing growth of 160% in the current decade.

This year's Julius Baer Wealth Report Asia

2018 has been a fortuitous year for the luxury goods market. The report shows that the cost of luxury living, as measured by the Julius Baer Lifestyle Index, rose by 2.91% on an aggregate basis in USD terms, compared to the 1.42% gain in 2017. This qualifies as our index’s best yearly price growth on record, extending its historical upward trajectory. In this year’s report, Shanghai displaces Hong Kong as the most expensive city, whereas Kuala Lumpur remains the most competitive.

Following a strong recovery since 2015, global luxury consumption is expected to moderate alongside a cooling Chinese economy. Yet the longer-term outlook remains rosy premised on structural demand from Chinese millennials and a more prominent female presence in the luxury market.

Living in luxury in Asia: the Julius Baer Lifestyle Index

The Julius Baer Lifestyle Index 2018 compares 22 goods and services across 11 Asian cities, including Hong Kong, Singapore, Shanghai, Mumbai, Taipei, Jakarta, Manila, Seoul, Kuala Lumpur, Bangkok, and Tokyo. The 2018 report introduces a new index – the His & Hers Index, which compares the cost of grooming for wealthy women and men across Asia.

Our Julius Baer Lifestyle Index maintains its upward trajectory since its launch eight years ago, underscoring the strength in demand for luxury goods and services in Asia. Government efforts to boost domestic consumption, price harmonisation by luxury companies, and the scarcity factor were among the contributing factors to robust price trends.

Further information

You are invited to explore the eighth instalment of Julius Baer’s flagship research on wealth trends across Asia in the 2018 edition. Your relationship manager will be delighted to provide you with your personal copy and advice pertaining to wealth allocation to this region (subject to local regulatory requirements).