Luxury living a bargain in Manila for wealthy Asians — report
Updated November 9, 2017 – 7:12pm
http://www.philstar.com/
MANILA, Philippines — Manila ranked as the third cheapest city in Asia to live a life of luxury largely due to “significant” depreciation of the Philippine peso, according to the latest annual “Wealth Report” of investment bank Julius Baer.
However, Manila’s ranking in terms of cost of luxury living fell by one spot at 9th place out of 11 Asian cities primarily due to the weakening of the peso “since most items performed well in local currency terms.”
“Our price index rose strongly in local currency terms (+7.5 percent) but this was negated by a significant depreciation of the Philippine peso (-6.3 percent),” the report said.
“The peso has been one of the few currencies in the region that has weakened since the start of 2017. This is due to some investor concerns despite a stable economy, over the style of governance of the new administration and recent reversal of the current account surplus into deficit,” it added.
“Without interest rate hikes, the currency seems likely to fall further.”
Only golf club memberships appear to be the most expensive in Manila with price ranging from $3,289 to $821,937.
Meanwhile, Manila remains an attractive location to buy men’s suit, ladies shoes, skin cream and go for a Botox procedure.
Compared to other Asian cities, Manila is also the second cheapest to buy prime property, partake of a fine meal and stay at a five-star hotel.
“The Manila prime residential market is doing well as buyers and investors are exhibiting renewed confidence on the back of a recovering economy,” the report said.
“Over the past 18 years, the market demand for luxury residential properties was relatively sparse resulting in a slowdown of luxury residential property launches,” it added.
“The prime residential market is set to remain stable with opportunities of growing still available especially as interest from foreign investors and developers continue to increase.”
With its sky-high property prices, Hong Kong snatched the top spot from Shanghai in terms of luxury living. It is also the priciest city for fine dining and business class flights.
On the other hand, Kuala Lumpur replaced Mumbai as the least expensive city in Asia due to the continued depreciation of the ringgit against a strengthening rupee.
