REVEALED: WHAT DEFINES LUXURY & QUALITY OF LIFE AROUND THE WORLD
A luxury lifestyle might cost more than it used to, but how does it compare with cities around the world?
4 min
A life of luxury in Australia costs more than it used to in Australia. Inflationary pressures have pushed everything from the price of real estate, extravagant dining experiences and lavish weekends away up higher than they’ve ever been before.
The price tag for luxury homes across Australia now starts at $2.52 million, up an eye watering 72 per cent from a decade ago.
But what counts as luxury varies significantly depending on location. Sydney remains Australia’s most expensive market, where luxury begins at $4 million. The Gold Coast has now taken second place at $2.6 million, pushing ahead of Melbourne’s $2.49 million entry point.
That’s according to Luxury Report, produced by real estate firm Ray White, analysed what defines luxury today.
Global comparison
Housing affordability continues to hover at crisis levels in Australia, but how does a luxury lifestyle in Australia compare with the rest of the world?
A look at real estate markets abroad quickly reveals that where you choose to live can have a huge impact on what it costs to put a roof over your head.
For example, in Monaco, a small apartment can set you back more than $38,800 per square metre. Here, more than 40 per cent of the nation’s residents are millionaires: the highest proportion of any city in the world.
According to the ninth edition of a report that offers a snapshot of how global cities compare on cost of living, quality of life and income and affordability, Sydney and Melbourne isn’t anywhere near as expensive as other cities around the world.
Which puts it perspective for the wealthy trying to grapple with whether or not they can afford to keep the holiday house, or whether to list it for sale.
The Mapping the World’s Prices 2025 report ranked the cheapest and most expensive cities around the world, with the Deutsche Bank Research Institute assessing global cost and quality of life indicators.
The report tracks what it costs to enjoy a luxurious lifestyle. This includes the prices of everything from groceries, wine, buying a city apartment, salaries and general measures of the quality of life. Other factors measured include the cost of a summer dress, a carton of cigarettes, internet data and what it costs to dine out in some of the best restaurants.
Produced by the Deutsche Bank Research Institute, the report points out that inflation making a roaring comeback over the last five years, currency swings are influencing purchasing power and the world’s cost of living leaderboard is therefore shifting quickly.
Researchers focused on the 69 cities that matter most to global financial markets, and therefore your investment portfolio.
Here’s a breakdown of the most expensive places to live around the world:
Quality of life
If you’re seeking a good quality life, the top five cities for a quality lifestyle listed in the report are Luxembourg, Copenhagen, Amsterdam, Vienna and Helsinki.
Meanwhile, Zurich and Geneva have slipped out of the top five because cost of living pressures have continued to skyrocket, making these cities now the most expensive in the world to live in.
Buying an apartment
Prices for an apartment have fallen by 20 per cent in Hong Kong over the last five years, but still top the list, followed by Zurich, Singapore, Seoul and Geneve.
London and New York are just outside the top five, while Beijing comes in at ninth place, highlighting the elevated property prices in China. If you’re looking to buy an apartment, unit or townhouse in Australia, the median price in July 2025 was $686,399.
Utility bills
Electricity bills cost around $350 to $420 per quarter in most states of Australia, which is much cheaper than what Germans are forking out. Munich, Frankfurt and Berlin have the highest energy bills in the world, while Warsaw, Vienna and Prague also make the top 10, highlighting that Eastern European cities are counting the costs of the lack of cheap Russian gas.
iPhone
If you want to pick up a smartphone to keep in touch with loved ones while travelling, you’re going to pay a lot more for one in Turkey, Brazil, Egypt, India and Sweden. Seoul is the cheapest as competition with Samsung makes it even cheaper than in US cities.
Groceries
Geneva, San Francisco, Zurich, New York and Boston are the top five costly places to stock up on groceries. Even by Swiss standards, groceries in Geneva are generally expensive, while groceries in Sydney are 39.41 per cent lower than in Geneva.
Wine
Picking up a bottle of wine will set you back if you’re in Singapore, where you’ll pay more than anywhere else in the 69 countries surveyed. Jakarta, Seoul, New York and Oslo are also expensive. It’s much cheaper to purchase wine in some other lovely cities, including Rome, Johannesburg, Cape Town, Budapest and Lisbon.
Cigarettes
Incredible, Australia tops the list anywhere in the world for the price of cigarettes. Government taxes and duties applied to cigarettes aim to dissuade consumption mean that Melbourne and Sydney have been ranked as the most expensive place for cigarettes, along with New Zealand.
Restaurants
Eating out in a swanky restaurant in Australia can set you back up to $300 per person. That might sound expensive if you’re trying to feed a family of four, it’s going to be more in Zurich, Geneva, New York, San Francisco and Boston.
Buying a car
Singapore and Copenhagen actively discourage the purchase of cars and are the most expensive cities to purchase a set of wheels. In fact, the cheapest possible car will set you back around $150,000 in Singapore Dollars. That’s for a basic car like a Honda Jazz, which is the same price as a Porche in any other part of the world.
The reason cars are so expensive in Singapore is the huge population in a limited space meaning the government prioritises a clean environment and less traffic. The next most expensive places to purchase a car are Tel Aviv, Istanbul and Abu Dhabi.
A record-breaking $11 million sale at The Centennial Collection has set a new benchmark for luxury apartment living in Bondi Junction.
As interest rates, inflation and market sentiment fluctuate, investors are being urged to focus on data, not panic.
The federal budget has rattled property investors. But the biggest mistake isn’t the tax changes, it’s the conclusion many are drawing from them.
2 min
The recent budget has forced a reckoning for property investors.
Negative gearing now restricted to new residential builds, the CGT discount gone and on paper, the numbers look different.
And many investors are responding by pivoting toward yield, prioritising cash flow over capital growth in a way that property strategists say misses the point entirely.
“The debate has shifted to yield versus growth as if they are opposing forces,” says Abdullah Nouh, founder of Melbourne-based buyers’ agency Mecca Property Group. “But that framing is itself the mistake.”
Nouh, who works with high-net-worth families and investors on long-term acquisition strategy, argues that capital growth remains the primary driver of genuine wealth creation and that the post-budget environment has made quality assets more important, not less.
The numbers make his case plainly. An additional $500 per week in rental income is welcome. A prestige asset appreciating by $1 million over a market cycle is transformative.
These are not equivalent outcomes, and portfolios built around yield at the expense of location and land value tend to generate income while wealth stands largely still.
The more nuanced shift Nouh is seeing among sophisticated investors is a move toward assets where both outcomes can be engineered simultaneously – established homes on substantial land in quality locations, where the existing dwelling can be repositioned, rental returns improved, and the underlying land value compounds independent of what sits on it.
For investors with existing equity, commercial property is also entering the conversation in a more serious way.
Prestige industrial assets, medical centres and long-leased essential retail offer income profiles that residential property in most capital city markets cannot currently match: longer lease terms, tenants covering outgoings, and greater predictability than the residential tenancy cycle.
“The investors who build lasting wealth are rarely the ones who chased yield or growth exclusively,” says Nouh.
“They are the ones who built a strategy they could sustain – one that generated enough income to hold quality assets through multiple cycles while those assets compounded in value.”
The budget has changed the settings. It has not changed the fundamentals.
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