MANILA, Philippines — What are “crazy rich Asians” spending their money on?
Health, apparently, is wealth in the region, as a recent report reveals that high-net worth individuals are spending more on their well-being. This is even as they continue to splurge on five-star hotel stays, fine dining, jewelry and designer clothing.
According to the recent Julius Baer Global Wealth and Lifestyle Report, health spending has emerged as a new luxury category. It ranks in the top five spending areas across all regions, with the Asia-Pacific leading at 63 percent of respondents increasing health-related expenses—nearly double the rate in Europe and North America.
The annual report tracks how much it costs to maintain the luxe life across 25 major cities, measuring everything from private school fees and luxury hotels, to business class flights and fine dining.
READ: Philippine conglomerates increase investments in health care
The survey component of the report also reveals that 70 percent of high-net worth individuals saw their assets increase over the past year. Yes, they’re spending this more on health, but more still favor experiences, with 74 percent of wealthy respondents in the Asia Pacific saying they have spent more on five-star hotels, and 71 percent on fine dining.
Europeans showed similar patterns, with roughly half boosting spending on hotels and restaurants.
But while travel and hospitality lead spending growth across all regions, there are notable differences. Increases in leisure travel outpaced business travel everywhere, suggesting that hybrid work patterns are becoming permanent even among the wealthy.
Investment activity is also up across all regions, with the Middle East and Asia-Pacific showing the strongest increases. The Middle East stands out for real estate focus: More than half of wealthy respondents there increased property spending, with Dubai recording the world’s most active market for homes above $10 million. The emirate’s tax advantages and strategic location continue attracting global wealth.
Sustainability factor
One of the more interesting findings concerns environmental priorities. While nearly all survey respondents said environmental, social and governance factors matter in their investment decisions, sustainability ranked low in actual purchasing choices.
Brand history and innovative design topped buying considerations across all regions. Only in the Asia-Pacific region did sustainability make the top five purchase factors. In Latin America, celebrity collaborations ranked higher than recyclable packaging.
This disconnect suggests that while wealthy individuals embrace environment, social and governance principles in their portfolios, traditional luxury markers—prestige, craftsmanship, exclusivity—still drive their personal spending.
Value for money
Beyond spending choices and habits, the report also dives into how currency fluctuations are also redrawing the landscape of luxury living worldwide.
Europe, for one, bounced back this year as the most expensive region for luxury living, with every European city in the index moving up. Zurich made the biggest jump, rising eight places to sixth position globally. The strength of the Swiss franc—it gained 8 percent against the dollar—largely explains this climb.
Currency and context matter, notes Christian Gattiker-Ericsson, Julius Baer’s head of research. “Take Tokyo as an example. This used to be the poster child of an ultra-expensive city in the 1990s. However, the steady decline of the yen has shown how this can change,” he says in the report’s foreword.
READ: WHO: Basic health services lacking in PH, Western Pacific
The Japanese capital has dropped 15 places since 2022 and now sits at 23rd. The yen’s decline to 160 against the dollar—its weakest since 1990—drove much of this fall.
Singapore stays at the top of the list of the world’s most expensive cities despite minimal price changes in local currency terms. The city-state’s political stability, business-friendly policies and strong currency have cemented its status as a regional hub for global wealth. London returned to third place, overtaking Shanghai, while Milan and Paris also rose substantially. These moves reflect broader currency trends, with the euro up 4 percent against the dollar and the British pound recovering from its 2022 lows.
Shanghai, China’s financial center, continues a slower decline from its 2021 peak at No.1 to No. 4 today, pointing to economic headwinds in China, including real estate market challenges and softer consumer confidence.
Currency matters
The Americas offer relative value in some categories. Fine dining costs 33 percent less than the global average, making it the cheapest region for restaurant experiences. São Paulo maintains its position as the only South American city in the global top 10.
The report states that currency movements will continue to shape these rankings. Analysts anticipate the Brazilian real to strengthen through 2024, and the Mexican peso to maintain its rally against the dollar.
Ultimately, the data reveal a global wealthy class that is more mobile, health-conscious and experience-focused than before—but remains surprisingly traditional in luxury preferences. Most of them still favor established brands and innovative design over environmental considerations.
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And in a world where money can buy you luxury anywhere, the cost of that luxury increasingly depends on where you choose to spend it—and which currency you’re counting in. —CONTRIBUTED
