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Luxury Expert: Conspicuous luxury consumption

Property Report
Luxury Expert: Conspicuous luxury consumption - luxury property - Asia property

In the next decade or so, baby boomers will be retiring. This is a significant factor that will influence wealth and spending patterns, with baby boomers in Asia increasingly investing in second homes and resorts to retire in style.

Asian retirees no longer expect to age in the bosom of their family with limited needs beyond security and adequate healthcare. The retiring well-off baby boomers will require more comfortable surroundings, personal services, quality leisure facilities such as fine food and beverage, golf clubs, medical services and boating facilitates, as well as top notch medical treatments. These expectations are already driving property developers to create luxury, multi-purpose residential communities, both in cities and resort destinations across the region.

Another group that will determine a change in lifestyle and consumption in Asia is the “new rich”, and especially those in China. The average millionaire in China is more than 10 years younger than his or her counterpart in the west, with many of China’s wealthy only in their late thirties. The men in China consume luxury products on par with women. But in the west, men account for only around a tenth of the luxury goods consumed by women, who spend a significant portion of their income on items such as bags, jewellery and shoes.

In China, about a third of buyers of super-cars like Ferrari are women. In the US, however, only about 10 per cent of Ferrari buyers are women. These unique consumption patterns will drastically change the lifestyle 


Disclaimer: The information presented and opinions expressed herein are those of the authors and do not necessarily represent the views of Estates Report and/or its partners.