Hong Kong, the esteemed financial hub of Asia. As one of the world's premier international financial centres, this cosmopolitan city has long been a beacon for trade, commerce, and investment. With its strategic location, Hong Kong serves as a vital gateway between East and West, bridging the region's burgeoning economies with global markets. The city's business-friendly environment, low taxation, and highly developed infrastructure have fostered a thriving economy, attracting multinational corporations, financiers, and entrepreneurs from around the globe. As a major centre for banking, asset management, and trade, Hong Kong plays a pivotal role in facilitating the flow of capital, goods, and services across the Asia-Pacific region, making it an indispensable player in the global economic landscape. But how does the city rank for affluent individuals looking to live well?
The Julius Baer Global Wealth & Lifestyle Report 2025
This year’s Julius Baer Global Wealth and Lifestyle Report presents a snapshot of the last moments of the ‘old’ situation, just before President Trump introduced new tariffs, which had and will continue to have ongoing implications for financial markets worldwide. Even before this point, though, the world was bracing itself for a global trade war, geopolitical tensions were high, and consumer spending was slowing. So, how did the global situation impact the lifestyles and priorities of affluent individuals over 2024 and early 2025?
The Julius Baer Lifestyle Index analyses the cost of a basket of eleven consumer goods (bicycle, car, champagne, jewelry, men's suit, residential property, technology package, treadmill, watch, women's handbag, women's shoes) and nine services (business class flight, degustation dinner, healthcare, hotel suite, lasik, lawyer, MBA, private school, spa) that represent discretionary purchases by HNWIs. It does not represent comprehensive spending patterns of HNWIs, but is an indication of how selected goods and services are priced around the world. This provides an overview of the relative cost of maintaining a high-net-worth lifestyle in these various major urban centres.
Hong Kong remains one of the most expensive cities in which to live well, despite having slipped one place in the ranking from last year, with the price of our basket of goods and services falling 0.8 per cent on average in local currency – one of just three cities experiencing a decrease in costs. For further explorations of wealth and consumer trends across the world, get our full Global Wealth and Lifestyle Report now:
City spotlight - Hong Kong
Looking into the detail of what has changed for Hong Kongers in the past year, prices for luxury and fashion goods have experienced varying shifts. While the prices of watches rose by 11.1 per cent and cars by 4.7 per cent in local currency, men’s suits, bicycles, and the technology package all became cheaper. The cost of services was similarly mixed, with healthcare and private schooling rising in price but other services falling significantly.
Somewhat bucking the general trend for increasing travel and hospitality costs this year, business class flights rose a relatively low 10 per cent. Meanwhile, fine dining costs fell 5.9 per cent and hotel suites saw the city’s biggest change, falling 26.1 per cent on last year.
Hong Kong has long been one of the world’s most expensive residential property markets, but saw a 1.2 per cent decline in local currency prices this year. The low-tax appeal and cosmopolitan culture of Hong Kong have long drawn wealthy individuals to relocate there, and a recent investment for residency programme generated significant interest from HNWIs both in mainland China and globally, reinforcing the city’s image as an attractive international investment and residency location.
Most Expensive Cities for Living Well
| City | 2023 Rank | 2024 Rank | 2025 Rank |
|---|---|---|---|
| Singapore | 1 | 1 | 1 |
| London | 4 | 3 | 2 |
| Hong Kong | 3 | 2 | 3 |
| New York | 5 | 7 | 8 |
| Monaco | 6 | 5 | 4 |
| Shanghai | 2 | 4 | 6 |
| Dubai | 7 | — | 7 |
| Zurich | — | 6 | 5 |
| Paris | — | 8 | 9 |
| Milan | — | 10 | 10 |
| São Paulo | 9 | 9 | — |
| Taipei | 8 | — | — |
| Miami | 10 | — | — |
Hong Kong continues to attract many family offices of HNW individuals and families – a reflection of the city’s competitive investment environment and ready access to fast-developing economies in East Asia.
Economically, Hong Kong has seen a recent return to strong growth, buoyed by higher tourism receipts and a surge in goods exports in advance of high US tariffs being enforced.
The government is also actively seeking to engage the ‘silver economy’ to reap the rewards of an ageing but increasingly wealthy population. Hong Kong has one of the highest life expectancies in the world, and with around 35 per cent of its population expected to be over the age of 65 by 2043, initiatives to develop technology and services that improve the lives of older people have become a key focus for the city.
Hong Kong continues to be an attractive destination for doing business and for the mobile global elite. Despite the city’s high cost of living, its status as a top financial hub and vibrant social landscape makes it a great place to live.
Economic overview: Asia
Asia Pacific remains one of the fastest-growing regions globally. Real GDP grew 4.5 per cent year on year in 2024 – moderating slightly from 5.1 per cent in 2023 but still outpacing the global average of 3.3 per cent. Meanwhile, inflation has largely been kept in check at 4.5 per cent in each of the past two years.
Firm fundamentals have set the stage for the rapid ascent of wealth in the region. The number of high-net-worth individuals in Asia is projected to have grown 5 per cent year on year to 855,000 in 2024. Growth in China and India is expected to help bring Asia’s share of new HNWIs globally to an estimated 47.5 per cent between 2025 and 2028.
While old economy businesses will be a mainstay of wealth in Asia, entrepreneurship opportunities facilitated by the emergence of newer technologies are changing the profile of the Asian HNWI. Concurrently, the intergenerational wealth transfer that should see a projected USD 5.8 trillion in assets change hands between 2023 and 2030 will accelerate the shift towards new preferences in lifestyle and spending choices, such as a growing focus on sustainability, increased digitalisation and a bias towards experiences.
The tariff war has disproportionately impacted ‘Factory Asia’, given the region’s high share of global manufacturing and the higher than average initial reciprocal tariffs imposed by the US. While economic growth has been revised down in the near term, the long-term dynamism of the region remains intact. After all, with 62 per cent of the world’s population calling Asia their home, there is plenty of opportunity for innovation here.
Jen-Ai Chua, Research Analyst, Equities Research Asia