Singapore is the most expensive city in the world for rich people to live the good life for the second year in a row, according to the Swiss private bank Julius Baer. The bank’s Global Wealth and Lifestyle report is designed to capture the “cost of living extremely well” in cities around the world.

The Chinese city of Hong Kong is now the world’s second most expensive city, up one spot from last year.

Yet other Asian cities dropped down in the rankings. Shanghai, previously in second place, dropped to fourth. Taipei, ranked in eighth place last year, dropped out of the top 10 entirely. Tokyo fell to 23rd place, from 15th place in 2023.

Instead, European cities made up the bulk of the top ten. Milan, Zurich, and Paris broke into this year’s top 10.

Currency fluctuations are a major reason for changes on the list, Julius Baer explains in its report. The U.S.’s higher interest rates are putting pressure on many Asian currencies, sending them to record lows against the U.S. dollar.

“We tend to forget that the costs of living look completely different in the eyes of a stranger, especially if that person thinks in U.S. dollars or Swiss francs,” Christian Gattiker, head of research at Julius Baer, says.

What makes Singapore number one?

Singapore’s status as an “important regional and global hub” is due to positive factors like stable politics, good health care, low crime, and excellent public transport, Julius Baer suggests in its report. Singapore’s government is also trying to attract global businesses and wealthy individuals.

The city-state is the world’s most expensive place to own a car, due to rules requiring owners to buy a “certificate of entitlement.”

Singapore relaxed its pandemic restrictions earlier than Hong Kong and several other Asian cities, and thus saw an influx of wealthy migrants. That sparked a surge in home prices, which are still rising despite the government’s efforts to cool down the property market.

Another area where new wealthy migrants led to increasing costs: the island’s premier golf clubs. Between 2019 and 2022, a foreigner’s membership for the Sentosa Golf Club, a 36-hole course that overlooks the Singapore straits, more than doubled to hit 880,000 Singapore dollars ($650,000).