Asia Leads the World in Wealth Creation
Three out of the ten markets are Asian countries.
According to the latest edition of The Wealth Report, Knight Frank’s flagship report – Singapore, Malaysia, and Indonesia rank as part of the top 10 fastest-growing UHNW markets, seeing their wealth populations expand by 7-9%. In Asia Pacific, the UHNW population experienced a substantial growth of nearly 51% within the period spanning five years leading up to 2022. Although growth is forecasted to slow to 40% over the next five years, the region still leads the world in wealth creation.
Christine Li, Head of Research at Knight Frank Asia-Pacific, shares: “According to the latest issue of The Wealth Report by Knight Frank, the Asia-Pacific (APAC) population of ultra-high-net-worth individuals (UHNWIs) declined by 5.7% in 2022, after a record climb of 7.5% in 2021. Despite so, 3 out of 10 markets that saw the fastest-growing UHNWIs globally were from Singapore, Indonesia, and Malaysia at 7.0% - 9.0%. Taking the longer view, the wealth story remains compelling as the region will continue to lead the pack in the unending wealth expansion with plenty more opportunities for UHNWs to discover.”
Victoria Garrett, Head of Residential at Knight Frank Asia-Pacific adds: “While the UHNW population contracted last year, the number of high-net-worth individuals (HNWIs), those with US$1m or more in net assets, expanded by 2.9% to almost 70 million worldwide. The top three countries for HNWIs’ growth were Malaysia, Brazil and Indonesia. Additionally, 100 prime residential markets globally saw average price growth of 5.2% and luxury investment assets grew 16%. The top 10 global locations for forecast growth are dominated by European and Asian economies. The region’s economic growth story will remain urban-centric, and its residential investment landscape will continue to be defined by its prime urban cores. Underpinned by its high rates of urbanisation, investors can look forward to a more sustainable growth trajectory and wealth preservation profile.”
Within the latest update of The Wealth Report, Knight Frank has identified the level of net individual wealth it takes to reach the 1% threshold across the world. This varies sharply from country to country but to access ‘the 1%’ falls well short of Knight Frank’s definition of an UHNWI – somebody whose net wealth exceeds US$30 million. Even in Monaco, which has the world’s densest population of super-rich individuals, the entry point for the principality’s branch of the 1% is US$12.4 million.
Australia rounds off the top three with US$5.5m, with New Zealand and the US sitting in fourth and fifth with US$5.2m and US$5.1m respectively required. For Asia, Singapore has the highest threshold with US$3.5 million required to be in the top 1% ahead of Hong Kong’s US$3.4m. For the UAE, Middle East’s highest entry, the level required is US$1.6m and Brazil comes top of Latin American markets with US$430,000 threshold.
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