Luxury goods prove growth industry
By Pan Xiaoyi |
June 14, 2010, Monday
|
Print Edition
Print Edition
THE consumer price index in China for general goods is picking up slightly as its luxury counterpart roars ahead, mainly due to the surge in upmarket property costs.
The luxury CPI grew 11.3 percent in the year ending June 1, compared with a growth of 4.6 percent last year amid the fallout from the global financial crisis.
The figure was more than 8 percentage points higher than the general CPI, which rose 3.1 year on year in May, according to the Hurun Luxury Living Index Report for 2010 released over the weekend.
"It is getting more expensive to buy one's way into China's elite inner circle," said Rupert Hoogewerf, founder and chief researcher of the Hurun Report.
"Demand, driven by more wealth creators looking for ever-more sophisticated luxury products, is far outstripping supply."
The Hurun Luxury Living Index tracks retail price changes of a basket of 58 luxury products and services including education, liquor, jewelry, cars, and high-end homes.
Hoogewerf singled out rising property prices as a vital factor and cited the cost of a luxury property in Shanghai, which has almost tripled in the past four years.
Luxury property prices rocketed 45.1 percent year on year in June, much higher than any other category.
The climb followed a fall of 1.8 percent last year and rises of 29.8 percent and 13.9 percent from 2008 and 2007, the report said.
"The limited supply of luxury property in the face of strong demand, in the context of a generally buoyant housing market, was a significant factor in large increases such as these," the report said.
The Hurun Report, best known for compiling the China Rich List, at the same time released a study, "New Aristocracy Threshold," which gave a guideline on just how much cash is needed for a family unit to have a super-luxury lifestyle in China.
The annual spending threshold for the rich rose to 106 million yuan (US$15.51 million) this year, up 22 percent from a year earlier.
Taking a Shanghai family as an example, this includes a 29.8 million yuan villa, a downtown apartment in Shanghai as well as a holiday house in southern Hainan Province's Sanya. An average of four cars, five watches and artwork are included.
There are 875,000 individuals in China with a personal wealth of 10 million yuan or more, up 6.1 percent on year, and 55,000 people with 100 million yuan, up 7.8 percent, according to the Hurun Report.
The luxury CPI grew 11.3 percent in the year ending June 1, compared with a growth of 4.6 percent last year amid the fallout from the global financial crisis.
The figure was more than 8 percentage points higher than the general CPI, which rose 3.1 year on year in May, according to the Hurun Luxury Living Index Report for 2010 released over the weekend.
"It is getting more expensive to buy one's way into China's elite inner circle," said Rupert Hoogewerf, founder and chief researcher of the Hurun Report.
"Demand, driven by more wealth creators looking for ever-more sophisticated luxury products, is far outstripping supply."
The Hurun Luxury Living Index tracks retail price changes of a basket of 58 luxury products and services including education, liquor, jewelry, cars, and high-end homes.
Hoogewerf singled out rising property prices as a vital factor and cited the cost of a luxury property in Shanghai, which has almost tripled in the past four years.
Luxury property prices rocketed 45.1 percent year on year in June, much higher than any other category.
The climb followed a fall of 1.8 percent last year and rises of 29.8 percent and 13.9 percent from 2008 and 2007, the report said.
"The limited supply of luxury property in the face of strong demand, in the context of a generally buoyant housing market, was a significant factor in large increases such as these," the report said.
The Hurun Report, best known for compiling the China Rich List, at the same time released a study, "New Aristocracy Threshold," which gave a guideline on just how much cash is needed for a family unit to have a super-luxury lifestyle in China.
The annual spending threshold for the rich rose to 106 million yuan (US$15.51 million) this year, up 22 percent from a year earlier.
Taking a Shanghai family as an example, this includes a 29.8 million yuan villa, a downtown apartment in Shanghai as well as a holiday house in southern Hainan Province's Sanya. An average of four cars, five watches and artwork are included.
There are 875,000 individuals in China with a personal wealth of 10 million yuan or more, up 6.1 percent on year, and 55,000 people with 100 million yuan, up 7.8 percent, according to the Hurun Report.
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