LOS ANGELES - TIMES are tough in Beverly Hills. Well, tougher, anyway.

As recession looms and Wall Street shivers, the Los Angeles area's richest are perhaps perspiring - although they never actually sweat like other people.

Just ask Tim O'Hara, general manager at O'Gara Coach Company, a Beverly Hills-based Rolls-Royce dealership that caters to rock stars, actors and Hollywood executives, many of whom live in the mansion-filled city adjoining Los Angeles.

Such exotic cars as Rolls, Aston Martins, Bentleys and Lamborghinis cost from US$100,000 (S$138,700) to more than US$1 million, and are still in demand in these parts.

While the slump continues to wreak havoc on world markets and cost thousands of people their jobs, homes and retirement savings, its effect on society's wealthiest, people with net worths of US$10 million or more, is far more subtle.

Insulated from the perils threatening the day-to-day lives of the working poor and middle class, these affluent folks are still spending big on luxury cars, boats, jets and jewellery - but less than they did a year ago, say realtors, car salesmen and other professionals who cater to this crowd.

Slow-moving mansions
Gary Gold, executive vice president of Los Angeles luxury home real estate agency Hilton & Hyland, whose clients include Denzel Washington, Bruce Springsteen, Barbra Streisand and Arnold Schwarzenegger, said high-end homes were staying on the market a tad longer than a year ago.

'Homes in the US$3 million to US$10 million range are staying on the market a little longer. There was one time when we'd have only three months of inventory. Now it's more like seven to 10 months of inventory, he said.

But Mr Gold contrasted that scenario to situations in places like Florida, with three years of inventory and Las Vegas, which has two years worth.

Moreover, Hilton & Hyland enjoyed a record amount of sales since last year involving homes valued at US$10 million and above.

'Some people's wealth is evaporating but in the super high-end, it doesn't appear to have had a huge impact,' Mr Gold said, also citing a huge influx of foreign money into Los Angeles real estate.

It has also been business as usual for Hamish MacDonald, chief executive officer of Customized Fitness Systems, which builds US$100,000 gyms in the homes of celebrities.

'We sell a treadmill for US$12,000. A lot of our clients are buying that treadmill. It's an easy sell,' he said.

'Most of my clients are top celebrities and they're making US$20 million or more in movies, so I don't think this (economy) is affecting them on a day-to-day basis,' he said.

However, the rich are paying attention to the Fed's interest rate cuts, it seems.

Rolls dealer Mr O'Hara expects some of his clients may opt to use money for other things than a new car.

'There's some excellent buying opportunities in real estate. Instead of buying that Rolls this year, someone may decide to take their US$500,000 to buy a repossessed private jet.

There are lots of ways to spend money,' he said. -- REUTERS