Table of Contents

1. Key Highlights
2. Introduction
3. Why Singapore climbed to No. 1
4. What the Julius Baer 2026 ranking reveals about high-net-worth behavior
5. How the U.S. luxury market is evolving
6. What brands must reconfigure: retail footprints, pricing and services
7. Real-world responses: how cities and brands are reacting
8. The secondary market and the ascent of collectible assets
9. Currency, tariffs and policy: the unseen levers that shape perceptions
10. Which cities could be next on the rise — and why size no longer guarantees leadership
11. What wealthy consumers should consider when buying luxury today
12. How governments and cities can attract luxury spend
13. Contrasting strategies: heritage brands versus new luxury entrants
14. Measuring success: what metrics matter now
15. The role of digital platforms and auctions
16. Sustainability, stewardship and the cultural framing of luxury
17. Forecast: three scenarios for the next decade of luxury
18. Practical guidance for brands and wealth managers
19. FAQ

Key Highlights

• Singapore ranks as the world’s most expensive city for high-net-worth individuals for the fourth consecutive year, driven by high property and car costs, a strong Singapore dollar, and the city-state’s appeal as a stable financial and cultural hub.
• For the first time, no city in the Americas appears in the global top ten — a symptom of changing spending habits among wealthy Americans, currency effects and growing mobility of luxury demand.
• Luxury consumption is shifting from conspicuous, immediate purchases toward experiences, collectibles and assets with potential appreciation, forcing brands to rethink retail footprints, pricing strategies and services.

Introduction

For decades the luxury sector followed a straightforward map: Paris delivered heritage and craftsmanship, New York offered purchasing power and theatre, and China promised mass expansion. That map produced predictable choices for where houses opened flagships and staged shows. The latest Julius Baer Global Wealth and Lifestyle Report 2026 overturns several assumptions at once. Singapore now sits at the top of the ranking for the fourth year running, while, for the first time, no American city appears in the global top ten. Those shifts reflect more than statistical reshuffling. They document changing incentives for wealthy consumers, new calculations by luxury brands, and the rise of smaller but magnetically connected cities that concentrate global wealth.

The story is not that American appetite for luxury has vanished. Fifth Avenue still stages some of the sector’s most iconic shopping rituals. The United States remains one of the world’s largest luxury markets. The story is subtler: where, how and why wealthy people spend is evolving. Currency movements, tariffs and concerns about value and longevity are nudging buyers toward experiences, art, collectibles and assets that offer both enjoyment and potential appreciation. Luxury is becoming mobile; the places that attract and preserve wealth — not simply those with the largest populations — are rising as new centers of consumption.

This article traces the forces behind that shift, examines what it means for brands and consumers, and outlines how the industry is adapting to a more mobile, discerning wealthy clientele.

Why Singapore climbed to No. 1

Singapore’s top ranking is not an accident of aesthetics or advertising. It results from a combination of structural price drivers and deliberate policy choices that make the city-state unusually attractive to high-net-worth individuals (HNWIs).

High residential property values and expensive automobiles figure directly into the Julius Baer calculation. A compact territory with limited land, Singapore has seen sustained demand for prime real estate from both domestic buyers and foreign investors. The result: property is expensive. Luxury automobiles — a visible marker of status in many HNWI circles — are costly as well, in part because of taxation and regulatory frameworks that limit vehicle numbers and raise ownership costs. Those items, when combined with the strength of the Singapore dollar, push the city-state up the expense ladder.

Political stability and strong institutions add a second, less visible advantage. Wealthy individuals and family offices prize jurisdictions where rule of law, regulatory predictability and governance reduce the risk that accumulated capital will be eroded by sudden policy shifts. Singapore’s reputation as a reliable financial nucleus attracts capital and the services that support it: private banks, wealth managers, galleries, luxury retailers, and concierge providers that cater to deep-pocketed clients.

Global connectivity completes the picture. Singapore’s airport is a hub for travel within Asia and to Europe; the city’s visa and residency options for investors and professionals make it a practical base. Those logistics matter. The person browsing a boutique on Orchard Road might be Singaporean, but could equally be visiting from Indonesia, India or Malaysia. That catchment area multiplies demand for high-end retail, gastronomy and hospitality.

Kylie James, CEO of luxury auction platform LAX.BID, describes the magnetism this way: Singapore “offers political stability, a strong economy, excellent infrastructure, and a business-friendly environment, all of which create confidence for those looking to live, work and invest there.” She also highlights the city’s growing role in art and collectibles. Fine art fairs, high-end hospitality and headline events anchor cultural calendars and draw wealthy travelers who combine shopping with lifestyle consumption.

Those combined factors — price mechanics, governance, connectivity and cultural infrastructure — explain why a small city of fewer than six million residents can top a ranking that once favored deep-pocketed, populous countries.

What the Julius Baer 2026 ranking reveals about high-net-worth behavior

The report surfaces behavioral change as clearly as it measures cost. One in three respondents say they have altered where they source some of their luxury purchases. That degree of mobility suggests a break with a pattern in which wealthy individuals shopped according to proximity, national heritage or store prestige.

Three main behavioral shifts emerge:

1. Geographic substitution. Tariffs, currency fluctuations and travel convenience now shape where goods are bought. A buyer may choose to purchase in Singapore rather than New York because exchange rates or duties create a meaningful price advantage. The luxury experience is portable; shoppers will seek the most efficient combination of cost, availability and service.
2. Asset orientation. Wealthy consumers increasingly treat purchases as investments. Art, collectible watches, rare handbags, and vintage jewelry enter portfolios not just for consumption but for appreciation potential. Kylie James notes that HNWIs are “putting their money into experiences, art, collectibles, and assets that offer both enjoyment and potential appreciation.” Auctions, private sales and specialist platforms are rising alongside traditional boutiques.
3. Experience and longevity. Visible consumption is shifting toward narratives and longevity. Buyers prioritize craftsmanship, provenance and after-purchase services — repairs, authentication, resale support — that preserve value over time. This reflects a broader cohort mindset that values curation and scarcity over conspicuous, seasonal consumption.

These behaviors intersect with macroeconomic variables. Dr Matthias Fuchs, assistant professor of marketing at EHL Hospitality Business School, points out that currency movements drive relativity: “Large parts of why the US fell off (i.e., became more affordable relative to other places) is probably due to the current weakness of the US dollar […] and could say more about the lags of price increases relative to currency exchange rate fluctuations.” Currency strength changes the calculus of where a purchase is best made and which markets feel more expensive at a given moment. When buyers can cross borders quickly and easily, they will seek advantage.

How the U.S. luxury market is evolving

The absence of any American city in the Julius Baer top ten is a marker, not an obituary. The U.S. still exerts enormous influence on global fashion, watches, jewelry and beauty consumption. Fifth Avenue remains a stage where brands showcase their identity and where tourism and local spending intersect. Yet the internal dynamics of the U.S. market have shifted.

Post-pandemic enthusiasm that fueled pent-up demand for handbags and collectible watches is cooling. Wealthy Americans are increasingly selective, asking how purchases align with long-term value. Several forces explain the recalibration:

• Purchasing discipline. Wealthy consumers are scrutinizing returns on consumption. Longevity, repairability and secondhand resale value factor into decisions. Brands with strong heritage and consistent resale performance tend to fare better in this environment.
• Diversification of spending. HNWIs are allocating more to experiences — private travel, bespoke culinary experiences, yacht charters, and curated adventures — and toward assets expected to appreciate. Art and collectibles represent a dual utility: aesthetic pleasure and potential investment returns.
• Secondary market growth. Pre-owned luxury platforms and auction houses offer liquidity and a way to rotate collections. This market gives buyers confidence that their purchases can be monetized or upgraded.
• Currency and pricing dynamics. With a comparatively weak dollar, U.S.-based luxury seekers may find advantages shopping abroad, further diffusing domestic spending.

Kylie James summarizes this shift in allocation succinctly: “Increasingly, wealthy consumers are looking beyond traditional luxury purchases.” The phrase captures a broad recalibration that affects everything from handbag launches to how a watchmaker positions new models.

The U.S. response will not be uniform. Certain cities and segments will remain robust. Private client services, personalized events, and experiential retail will continue to attract spend. But brands that depended on rapid, volume-driven sales of new-release collectibles will need to adapt to a market that prizes depth over breadth.

What brands must reconfigure: retail footprints, pricing and services

Luxury houses have traditionally pursued a straightforward expansion playbook: open a flagship in a major capital, stage runway shows, and rely on aspirational demand to create momentum. The new conditions require more nuanced moves.

1. Market selection based on wealth magnetism, not size. Brands should prioritize locations that concentrate global wealth and provide a conducive wealth-preservation environment. Financial hubs with stable governance, strong privacy and residency options for HNWIs deserve attention even if their populations are small. Singapore exemplifies this approach; other cities that act as gateways for cross-border money flows can replicate the magnetism.
2. Flexible retail formats. Flagships remain useful as brand theaters, but pop-ups, appointment-only salons, private showrooms and rotating mono-brand exhibits provide efficiency and exclusivity. These formats lower operating costs while enhancing customer intimacy. Catering to travelling HNWIs requires adaptability: stock the right pieces, provide concierge-level service and ensure seamless cross-border purchasing.
3. Pricing transparency and local alignment. Currency dynamics and tariffs create arbitrage opportunities and risks. Brands must balance global pricing consistency with local market sensitivities. Shoppers will favor transparency and fairness. Strategies that include region-specific launches, localized offers and clear after-sales support will build trust.
4. Embrace the secondary market. Brands that ignore pre-owned sales risk losing control over their narrative and value curves. Many houses have begun to provide authenticated, certified re-commerce services or partnerships with resale platforms. This links initial purchase to potential resale and reassures buyers about long-term value.
5. Layered experiences and asset services. Buyers of high-value watches, jewelry and art expect services that extend beyond the point of sale: provenance research, certified authentication, maintenance, restoration and bespoke storage. Brands that integrate those services into a luxury ecosystem — alongside private sales and investment advisory — will capture value and loyalty.
6. Cultural and event partnerships. Aligning with art fairs, high-profile sporting events and culinary showcases connects brands to lifestyles rather than single items. Sponsors of exclusive events gain direct access to affluent buyers who prioritize experiences and networked consumption.

These shifts demand a reorientation from mass exclusivity toward curated, high-touch engagements that span commerce, culture and capital.

Real-world responses: how cities and brands are reacting

Singapore’s steady climb and the changing U.S. picture are visible in strategic moves across the industry.

Retail behavior. Brand openings are increasingly strategic: flagships in key global hubs now coexist with private client spaces in finance centers and appointment-only boutiques near luxury hotels. Pop-ups tailored to specific collector communities — for example, a limited release of watches timed with an auction week — allow brands to test markets and create scarcity.

Event-driven consumption. Cities that host international events optimize spillover spending. Formula 1 races, major art fairs and international trade summits become focal moments in city calendars. Luxury hotels and restaurants adjust packages around those dates, and brands stage exclusive experiences for visiting buyers.

Art and auction houses. Auction houses and galleries have expanded their calendars in Asia and smaller hubs where buyers congregate. Platforms that offer private sales, online bidding and hybrid auction experiences extend reach beyond traditional sale rooms. Kylie James’s vantage falls squarely in this trend: auction platforms are capturing demand for collectibles and assets that HNWIs prefer to hold as part of diversified portfolios.

Financial and residency services. Cities that combine favorable residency or tax frameworks with excellent infrastructure become magnets for relocation and extended stays. Wealth managers and private banks play a role by advising clients on where to base spending and investments. That advice often shapes where significant purchases happen.

Hospitality alignment. Luxury hospitality brands collaborate with designers, watchmakers and couture houses to host private dinners, previews and curated experiences. These collaborations transform purchases into narratives, bolstering both the item and the memory attached to acquisition.

All of these responses reinforce the central dynamic: the relationship between place, policy and purchase is now a strategic variable for both buyers and sellers.

The secondary market and the ascent of collectible assets

A fundamental change underlies much of the behavioral shift: luxury items are increasingly treated as assets. The secondhand market for watches, handbags, jewelry and even haute couture is not merely a dumping ground for end-of-season goods. It is an established channel for investment-minded consumers.

Why this matters:

• Liquidity: With reliable resale channels, buyers perceive lower risk in acquiring high-value pieces. Platforms that authenticate and certify goods — and brands that cooperate — reduce uncertainty.
• Price discovery: Auctions and resale marketplaces produce transparent evidence of value. That historical pricing data informs both collectors and brands about demand and scarcity.
• Circular consumption: Pre-owned markets increase the lifecycle of objects and support sustainability claims. For certain customers, the ability to buy vintage or limited-run pieces appeals both aesthetically and morally.

Kylie James’s observation that wealthy consumers are shifting allocations toward “experiences, art, collectibles, and assets” aligns with the expansion of auction platforms and certified resale marketplaces. Brands that build re-commerce strategies can retain touchpoints with clients across ownership cycles. The result: a more resilient, trust-based marketplace where provenance, condition and certification matter as much as design.

Practical steps in this space include formal buy-back programs, certified authentication services, and limited-edition releases designed with future collectors in mind. Collectible categories that historically outperformed include certain watchmakers, blue-chip contemporary art and rare vintage handbags. These categories attract both passionate collectors and investment-focused buyers.

Currency, tariffs and policy: the unseen levers that shape perceptions

Price is not a fixed attribute. It depends on exchange rates, import duties, and even the local structure of taxes. For wealthy consumers who travel or buy across jurisdictions, these variables change where a purchase seems most sensible.

Dr Matthias Fuchs’s point about the U.S. dollar’s relative weakness illustrates how currency shifts alter rankings even when local prices are steady. If the U.S. dollar falls against other major currencies, goods priced in stronger currencies will appear comparatively more expensive for Americans. Parallel mechanisms operate for foreign buyers evaluating U.S. purchases when the dollar is weak.

Tariffs and local taxes create a second layer of complexity. Import duties on luxury goods can materially affect sticker prices in some countries. Travel retail and duty-free channels, long used by tourists to achieve savings, are less straightforward when luggage allowances, customs regimes and online cross-border shopping introduce friction.

Policy choices such as residency pathways, tax incentives for art donations, and business-friendly regulations also matter. Wealth tends to seek jurisdictional environments that protect capital and offer lifestyle advantages. Singapore’s stable policy environment and investor-friendly posture are part of why it commands attention.

These levers are invisible in a storefront but decisive in aggregate demand. Brands and advisors must read them as part of pricing strategy and communications. Signaling transparency about regional pricing and offering services — like shipping, warranty coverage and buy-back guarantees — reduces buyer friction and counters the temptation to shop elsewhere.

Which cities could be next on the rise — and why size no longer guarantees leadership

If the new premium is the ability to attract and preserve wealth, candidates for future luxury centers share certain traits: financial infrastructure, political stability, international connectivity, events that draw affluent visitors, and a vibrant cultural offering.

Size matters less than density and magnetism. Small but well-managed cities with open economies and high-quality services can punch above their weight. Singapore’s trajectory suggests that future capitals of luxury may not be the most populous or historically fashion-centric locations. They will be places where wealth flows or concentrates.

Potential growth corridors include:

• Southeast Asian hubs that consolidate the region’s growing affluent classes and international visitors.
• Financial hubs that combine residency attractiveness with high-end services and security.
• Cities that invest in cultural programming, museums and events that draw collectors and connoisseurs.

This does not mean traditional capitals like Paris or New York lose relevance. Paris retains irreplaceable heritage; New York retains cultural power and buying density. The shift is additive: a more plural map of luxury centers, each with its own role in a global consumption ecosystem.

Brands must therefore craft layered strategies: keep established theaters of brand identity, while investing in new or expanding hubs where wealth concentrates. Those bets hinge not just on immediate returns but on long-term networks of services, visibility and client relationships.

What wealthy consumers should consider when buying luxury today

High-net-worth individuals face a richer, but more complicated, purchasing landscape. The opportunity lies in making informed choices that balance enjoyment with prudence.

Consider these practical guidelines:

• Factor total cost. Beyond the price tag, include taxes, duties, shipping, insurance and potential restoration costs. Local fees can convert a seeming bargain into a costly proposition.
• Prioritize provenance and certification. As the secondary market grows, documents that confirm authenticity and service records boost future value and ease resale.
• Think lifecycle. Consider whether the brand offers repair, refurbishment and buy-back services. These extend an object’s useful life and protect value.
• Diversify allocation. If a purchase is intended partly as an investment, spread risk across categories — art, watches, rare automobiles, and curated experiences — instead of concentrating on a single asset class.
• Leverage trusted advisors. Specialist auction houses, established galleries and certified resale platforms provide market intelligence that private individuals may lack.
• Time purchases around events and travel. Strategic shopping during travel can exploit exchange rate advantages or access rare pieces that are not available locally.

These actions move buyers from impulse to strategy, allowing purchases to serve both lifestyle and portfolio functions.

How governments and cities can attract luxury spend

The rise of Singapore demonstrates that public policy can shape the contours of luxury consumption. Governments that want to attract affluent residents and visitors can take specific measures:

• Maintain predictable governance and legal frameworks that protect property rights and contracts.
• Invest in world-class connectivity: airports, visa facilitation and efficient customs procedures.
• Promote a high-quality cultural calendar that includes fairs, gallery weeks, sporting events and culinary showcases to attract collectors and experience-seekers.
• Offer incentives for creative industries that feed the luxury ecosystem: design schools, artisan programs and museum funding.
• Facilitate financial services that make wealth management and business operations simple and secure.

Such policies do not create luxury overnight; they create the conditions in which private wealth chooses to spend, relocate and remain.

Contrasting strategies: heritage brands versus new luxury entrants

Two types of players face different challenges in the new environment.

Heritage houses. Established brands depend on history, craftsmanship and deep secondhand markets. Their strengths lie in consistent quality and the ability to command resale premiums. For these houses, strategies that reinforce provenance — such as providing comprehensive service records, limited editions and institutional collaborations — preserve value and relevance.

New luxury entrants. Contemporary designers and digitally native brands must cultivate desirability while proving longevity. They can achieve traction through strategic collaborations, scarcity-driven releases, and partnerships with galleries or hospitality brands to embed their products within experiences. For them, building a robust resale story early — perhaps by working with certified platforms — reduces buyer risk and supports higher price points.

Both groups benefit from developing private-client services that transcend retail. Whether through bespoke commissions, lifetime maintenance, or access to events and investment insights, these services are increasingly what differentiate winners.

Measuring success: what metrics matter now

Traditional metrics such as same-store sales and footfall still matter. But a broader set of measures now provides a clearer view of performance:

• Client lifetime value and frequency of returning high-net-worth buyers.
• Cross-border purchase rates and the geographic origin of sales.
• Resale performance of the brand’s products in certified platforms and auctions.
• Uptake of private-client services and conversion rates from experiences to purchases.
• Engagement metrics for events, by-invitation experiences and curated programs.

Brands that expand their KPIs beyond immediate retail sales can better align operations with the long-term preferences of wealthy clientele.

The role of digital platforms and auctions

Digital platforms change both supply and demand. Online auctions and authenticated resale marketplaces make collectibles accessible to a global clientele. They also provide real-time price discovery.

Digital tools permit hybrid experiences: virtual previews of rare pieces, livestreamed auctions, and curated online showcases that feed into private purchases. They reach buyers unable to attend flagship events and support brands with a global private-client base. LAX.BID and similar platforms illustrate how auction houses and marketplaces bridge consumption, collection and investment.

That said, digital must be paired with tactile, in-person experiences for the highest-value transactions. The object’s material qualities, provenance and conditional nuances matter most when stakes are high. Successful models combine the reach of digital channels with the intimacy of private viewings and expert consultation.

Sustainability, stewardship and the cultural framing of luxury

Sustainability has evolved from obligation to an integral part of value articulation. For many affluent buyers, an item’s sustainability credentials — ethical sourcing, repairability and circular economy integration — affect desirability.

Brands that incorporate transparent sourcing, long-term maintenance and certified reuse programs create a narrative that resonates with consumers who view luxury as an expression of values as well as status. Collectors also appreciate stewardship: institutions that offer conservation services, provenance archives and legacy planning make ownership feel responsible and enduring.

This cultural framing repositions luxury consumption away from ephemeral status signalling and toward long-term curation.

Forecast: three scenarios for the next decade of luxury

Scenario 1 — Distributed Luxury Hubs. A broader constellation of smaller, wealthy cities rises to prominence. Brands deploy flexible, high-touch presences across multiple hubs rather than concentrating on a handful of capitals. Secondary markets flourish and auctions become central to brand narratives.

Scenario 2 — Polarized Consumption. A split emerges between experiential luxury (travel, hospitality, bespoke services) and asset-driven luxury (art, watches, investment-grade collectibles). Brands either specialize or create hybrid offerings to bridge both markets.

Scenario 3 — Recentralization in Legacy Capitals. Paris, New York and London retain primacy through cultural dominance, while new hubs supplement rather than replace them. In this outcome, global brands maintain major theatres in legacy cities but expand intensive services elsewhere.

Current indicators favor the first scenario: mobility, policy attractiveness and a rising share of cross-border purchases point toward a more distributed and networked luxury geography. Brands that embrace flexibility, data-driven selection of locations, and integrated after-sales services will capture market share.

Practical guidance for brands and wealth managers

• Map client migration patterns. Understand where existing clients spend extended time and where they have second homes. Those cities are natural targets for private-client services and boutique formats.
• Build resale and certification pathways. Invest in provenance, authentication, repair and resale infrastructure.
• Tailor events to high-value windows. Align limited releases and private sales with major cultural or sporting events to maximize conversion.
• Train staff in investment narratives. Sales associates and client advisors should be fluent in both craftsmanship and secondary-market dynamics.
• Use data to optimize inventory allocation. High-value items perform best when placed where the right clientele can access them; inventory should follow demand signals, not just brand legacy.

These steps convert strategic insight into executable tactics that preserve brand equity and respond to client priorities.

FAQ

Q: Why did Singapore become the most expensive city for HNWIs? A: Singapore’s combination of high residential property and car costs, the strength of the Singapore dollar, political stability, strong infrastructure and global connectivity pushes its cost-of-living and luxury pricing higher. Its role as a financial center and a hub for international visitors and events concentrates demand for luxury goods and services.

Q: Does the U.S. losing a top-ten city mean American luxury is declining? A: No. The U.S. remains a significant and influential luxury market. The change reflects shifts in how and where wealthy Americans choose to spend, influenced by currency movements, evolving preferences toward experiences and assets, and greater price sensitivity tied to value and longevity.

Q: How do currency fluctuations affect luxury purchases? A: Exchange rates change comparative affordability. A weaker dollar makes goods priced in other currencies relatively more expensive for U.S. buyers, and vice versa. These movements can prompt buyers to shift the geographic origin of purchases to exploit favorable rates.

Q: What role does the secondary market play in these shifts? A: The secondary market provides liquidity, price discovery and confidence that high-value items can be resold. That reduces perceived risk and encourages acquisitions framed as both consumption and investment. Brands that engage with certified resale platforms retain influence over their products’ lifecycle.

Q: How should luxury brands respond to these trends? A: Brands should prioritize locations that attract global wealth, adopt flexible retail formats, provide transparent pricing and robust after-sales services, and integrate secondary-market strategies. Event partnerships and private-client services will also be crucial to retain and cultivate affluent customers.

Q: Are experiences now more important than objects? A: Experiences have gained importance, particularly for affluent buyers who seek unique, memory-rich consumption. However, objects that offer longevity, provenance and investment potential remain highly valued. The marketplace favors a blend of experiences and durable assets.

Q: Could another city replace Singapore at the top? A: Rankings depend on many factors including currency, local price drivers, policy and the concentration of wealth. Cities that combine connectivity, political stability, financial services and cultural programming could rise. Size alone is no longer the dominant determinant.

Q: What should HNWIs consider when buying luxury internationally? A: Check total ownership costs, verify provenance, consider repair and resale options, and factor in taxes and duties. Working with trusted advisors and buying through certified channels minimizes risk and preserves value.

Q: Will sustainability factor into luxury demand among HNWIs? A: Yes. Many affluent buyers now consider sustainability, ethical sourcing and circularity when evaluating luxury purchases. Brands with clear stewardship and repair programs strengthen appeal among these clients.

Q: How will auctions and digital platforms change the industry? A: They increase access, provide transparent price signals, and enable hybrid experiences that combine online reach with in-person verification. Auctions and specialized marketplaces will play a larger role as channels for high-value, collectible items.

The global map of luxury is being redrawn not by a single force but by the interaction of currency, policy, shifting consumer preferences and the growing importance of connectivity over scale. Cities that combine stability, services and cultural vitality will attract both wealth and the discretionary spending that defines modern luxury. Brands that respond with agility, integrity and a clear view of value will thrive on the new map.