The cost of living a life of luxury in Asia has risen 11.7% in dollar terms over the past year, more than twice the inflation rate for Asia as a whole. Haute Living takes a closer look at the new cost of living the good life.
According to a new Asian Lifestyle Index, which came from the private Swiss bank Julius Baer, the dramatic increase in the cost of living a luxury life in Asia is stunning many. The Index is based on a group of 20 luxury goods and services (including Oyster Rolex watches, Armani suits, boarding schools and facelifts) that are commonly purchased by millionaires in Hong Kong, Shanghai, Singapore and Mumbai.
So what is the reason for the inflation? Perhaps somewhat ironically, it’s increased demand from the wealthy themselves.
According to Julius Baer, the number of people in Asia with a million dollars or more in investible assets will more than double by the year 2015, to 2.82 million. In dollars, it’s estimated that their total wealthy will nearly triple to $15.8 trillion and China alone will account for nearly 50% of the number of high net-worth individuals.
In fact, reports in Asia, Europe and the U.S. all point to a higher growth rate of rich people which means with more millionaires out there, the more luxury items and services will be in demand.
The Lifestyle Index included the following items: Chanel quilted bag (price: $4,185, up 17.5%), Steinway Grand Piano (price: $201,021, up 16.7%), Tiffany 2ct diamond ring (price: $96,479, up 10.3%), Scupltra liquid facelift (price: $6,578, up 4.3%) and Cohiba siglo VI cigar (price: $760, up 5%).
Source: Wall Street Journal