Singapore drops to third spot in Asia's costliest cities ranking

Prices of jewellery and hotel items both went down.

Singapore's ranking as the most expensive city in Asia fell from second in 2016 to third in 2017, Julius Baer revealed.

According to the Julius Baer Lifestyle Index, the ranking has dropped due to price changes of luxury items.

Price of hotel items dropped by 21.2% YoY, no thanks to the harsher operating environment where there has been a steady expansion of hotel room supply amid tepid demand.

Julius Baer reported that Singapore hoteliers are reporting weaker property incomes due to continued pressure on average daily rates. However, the bank said the sector is on the mend.

"Most hotel Real Estate Investment Trusts (REITs) are sensing that the booking pace at their hotels are also improving in H2 2017 with most expecting to be able to price up average daily rates (ADRs) come 2018 on the back of a stronger line-up in meetings and conventions throughout the year. This will also coincide with a drop off in supply growth in 2018," the report said.

The price of laser eye surgery price in Singapore also fell by 13.7%. Prices for business class flights, specifically to New York and London, dropped 13.1%.

Singapore's average jewellery price of US$43,547 also hit below the average of US$45,027, placing it at the third to the last rank in the index.

High end residential property prices in the Lion City, however, rose 7.9% from 2016 and ranked as the third highest in Asia.

"Demand remains strong from end-users and investors with interest rates still low and liquidity flush," the report said. "This pent-up demand can be seen in cities like Singapore, Hong Kong and Shanghai where buyers are returning to pick up property at more attractive levels after recent price declines. While governments remain wary of asset bubbles and speculative activity, we note that authorities in certain countries like in Singapore have begun to reduce stamp duties signalling that prices may have fallen far enough."

Singapore's average fine dining price of US$283 is the second most expensive in Asia. The city also has the third most expensive wine.

Singapore continues to be the most expensive city to purchase a brand new BMW 7-Series sedan, with an average price of US$418,052, due to import duties and regulatory taxes.

Here's more from Julius Baer:

Singapore continues to remain attractive to investors in the midst of market uncertainty, supported by active urban development plans and the government’s proactive initiatives to ensure Singapore continues to remain relevant at the global stage

The lion city is the most expensive regionally to engage a lawyer, and second most expensive for fine dining and cigars. There are no apparent bargains for the Singaporean shopper apart from jewellery (third cheapest regionally).