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Knight Frank launches The Wealth Report 2016 (10th edition)

23 March 2016

Knight Frank launches The Wealth Report 2016 (10th edition)

·         Asia tops the absolute increase in UHNWI population among the world regions

·         Malaysia sees 64% growth in the population of UHNWIs over the next decade

·         Global ultra-wealthy population slips 3% in 2015

·         London remains as most important city to world’s UHNWIs over New York; Singapore displaces Hong Kong from the third position

·         Singapore, followed by Dubai, could compete for “most important city to UHNWIs” in the next decade

 

15 March 2016, Malaysia – Knight Frank, the independent global property consultancy, today launches the 10th edition of The Wealth Report 2016.  The report tracks the growing super-rich population in 98 cities across 91 countries.

 

Highlights of Ultra-High-Net-Worth Individuals (UHNWIs) population

– those with US$30m or more in net assets – according to data provided by New World Wealth for Knight Frank Wealth Report:

·         In 2015, almost 6,000 people dropped out of the UHNWI wealth bracket – a 3% slide, where only 34 of the 91 countries for which individual data is compiled saw a rise in UHNWIs. This is the first annual dip in ultra-wealthy populations since the global financial crisis began in 2008.

·         There are now 187,468 UHNWIs globally – marking a 61% rise from a global UHNWI population of 116,800 in 2005. 

·         By 2025, the global population of UHNWIs is set to rise by 41% to 263,483; growth is set to be significantly slower than the previous 10 years.

·         Asia tops the absolute increase in UHNWI population among the world regions, both in the last 10 years and in the next 10 years.

 

Wealth distribution (UNHWI populations 2005, 2015, 2025)

 World region

2005

2015

Absolute increase

2025

Absolute increase

(2005-2015)

(2015-2025)

Asia

17,531

41,072

23,541

67,999

26,927

North America

51,934

69,283

17,349

90,247

20,964

Europe

32,073

46,191

14,118

58,465

12,274

Middle East

4,712

8,910

4,198

13,763

4,853

Russia & CIS

2,039

6,105

4,066

10,517

4,412

LatAm & Caribbean

5,279

9,492

4,213

13,380

3,888

Australasia

1,630

3,795

2,165

5,179

1,384

Africa

1,602

2,620

1,018

3,933

1,313

Global

116,800

187,468

70,668

263,483

76,015

Source: New World Wealth, The Wealth Report 2016 (Pg 20, 21)


 

Globally, zooming in on Asia:

·         China and India are ranked 2nd and 3rd respectively in absolute increase in UHNWI populations over the next 10 years.

·         Singapore emerged as the second top Asian city with the most number of UHNWIs among the top 20 cities globally in 2015, with Hong Kong still the highest number with 3,854 UHNWIs.

·         Malaysia sees 64% growth in the population of UHNWIs to 1,629 over the next decade.

 


Wealth distribution – Top 20 by COUNTRY
(UNHWI populations 2015- 2025)

Rank

COUNTRY

Absolute increase 2015-2025

Growth 2015-2025

1

United States

19,714

30%

2

China

9,760

75%

3

India

6,321

105%

4

Russian Federation

3,847

72%

5

United Kingdom

2,990

30%

6

Germany

2,979

32%

7

Japan

1,676

26%

8

Hong Kong

1,619

42%

9

Mexico

1,464

58%

10

Brazil

1,368

35%

11

Turkey

1,284

60%

12

Canada

1,250

35%

13

Indonesia

1,206

110%

14

South Korea

1,179

55%

15

Singapore

1,133

48%

16

Australia

1,054

35%

17

Taiwan

936

48%

18

Israel

828

55%

19

Switzerland

682

12%

20

United Arab Emirates

675

50%

21

Malaysia

636

64%

Source: New World Wealth

 

Wealth distribution – Top 20 by CITY
(UNHWI populations 2015)

Rank

CITY

UHNWIs

in 2015

1

New York

5,600

2

London

4,905

3

Hong Kong

3,854

4

Moscow

3,457

5

Los Angeles

2,820

6

Singapore

2,360

7

Beijing

2,073

8

Taipei

2,062

9

Tokyo

2,035

10

Chicago

2,030

11

Zurich

1,754

12

Seoul

1,740

13

Sao Paulo

1,677

14

Frankfurt

1,650

15

Geneva

1,607

16

Mexico City

1,533

17

Shanghai

1,519

18

Paris

1,510

19

Houston

1,318

20

Istanbul

1,272

. . .    . . .

35

Kuala Lumpur

1,272

 

 

 

 

Nicholas Holt, Head of Research for Asia Pacific, Knight Frank Asia Pacific, says, “Of the 19 countries tracked within Asia Pacific, 12 saw their UHNWI populations fall in 2015, principally as a result of global macro-economic events, including the Chinese slowdown, the fall in the price of oil, volatile equity markets and the strengthening of the US dollar. Looking at a longer time horizon however, Asia especially has been fertile ground for the growth in the number of UHNWIs, with more individuals surpassing the US$30m barrier than in any other region over the last ten years.”

Sarkunan Subramaniam, Managing Director, Knight Frank Malaysia, says, “Year after year Malaysians continue to show a propensity for exporting capital in a need to preserve and grow their wealth – with a strong appetite for property. This appetite is underlined by the Attitudes Survey, which showed that 39% of UHNWIs in Malaysia are considering a residential purchase in 2016, the highest in the world.

“In terms of overseas destinations, Malaysia's top choice is currently Australia, which offers a favourable exchange for the Ringgit and good returns on property, not forgetting excellent educational and employment opportunities. Education will likely remain a significant driver with 77% of respondents in Malaysia saying demand for overseas education from Malaysian UHNWIs will significantly increase over the next 10 years.”

Additionally, The Wealth Report Attitudes Survey asked the wealth advisors on their clients’ changes in portfolio allocation towards residential property. 65% of Malaysian respondents said asset allocation to residential property has increased over the last decade; while the same percentage said allocations would also increase over the coming 10 years – the highest seen across UHNWIs in Asia Pacific for both decades.

Subramaniam adds, “Malaysians continue to put more faith in brick-and-mortar because property has given them very good returns over the last decade, and it will continue to do so in the next 10 years. Property has consistently outperformed many other asset classes in Malaysia.”

Average age of US$10m+ populations

Country

Average age

Vietnam

48

China

52

Brazil

53

US

56

UK

57

Switzerland

62

The average age of those with net assets of US$10m or more is also examined in the report. While these multimillionaires in developed economies such as the UK and Switzerland are likely to be their mid to late 50’s or 60’s, developing economies tend to have younger multimillionaires. This highlights the opportunity for wealth creation in rapidly expanding economies, as well as the increase in global trade and mobility.

Source: The Wealth Report 2016 (Pg 23)

Holt explains, “Much of this newfound wealth in Asia has had an impact on the age profile of Asia’s wealth brackets, reflecting the recent nature of the growth and opportunities in these markets. The average age of populations with US$10m or more in net assets is a case in point, with Chinese individuals in this bracket on average 10 years younger than their Swiss counterparts."

Most important cities to UHNWIs

Highlights – according to the results of our Attitudes Survey of wealth advisors:

 

·         London has beaten New York for the second successive time to win the accolade of ‘most important city to UHNWIs’.

 

·         Singapore has also beaten Hong Kong, displacing Hong Kong from the third place.

 

·         Sydney has re-entered the top 10 list taking the eighth position.

 

·         When asked if New York or London could ever be overtaken in the coming decade, about half of the respondents for the Attitudes Survey said no.  Of the 34% of respondents who said yes, Singapore, followed by Dubai, are the top contenders to be the next ‘most important city to UHNWIs’ in the next 10 years. Countries that responded ‘Yes’ and picked Singapore include respondents from Singapore, India, Australia, the US, Hong Kong, UAE, the UK, Malaysia and China (in decreasing order).

 

Rank

2015

2016

1

London

London

2

New York

New York

3

Hong Kong

Singapore

4

Singapore

Hong Kong

5

Shanghai

Dubai

6

Miami

Shanghai

7

Paris

Paris

8

Dubai

Sydney

9

Beijing

Beijing

10

Zurich

Geneva

Source: The Wealth Report 2016 (Pg 36),  The Wealth Report Attitudes Survey

 

 

 

Over the past decade, The Wealth Report has ranked the cities that matter most to the world’s wealthy, based on where they live, invest, educate their children, grow their businesses, network and spend their leisure time. On all measures, year-in year-out, London and New York have vied for the two top slots. No other city comes close in terms of their breadth and depth of appeal.

Wealth distribution globally

Wealth bracket populations (US$)

2005-2015

2014-2015

2015-2025

Millionaires ($1m+)

52%

-3%

36%

Multi-millionaires ($10m+)

58%

-3%

39%

UHNWI ($30m+)

61%

-3%

41%

Centa-millionaire ($100m+)

62%

-3%

41%

Billionaire ($1,000m)

68%

-3%

44%

Source: New World Wealth

 

END

To download the report, please visit: http://www.knightfrank.com/wealthreport

For further information, please contact:

Mr Nicholas Holt, Head of Research, Asia Pacific

nicholas.holt@asia.knightfrank.com +65 6429 3595 @nholtKF

Ms Rachel Loke, Head of Public Relations & Communications, Asia Pacific

rachel.loke@asia.knightfrank.com +65 6429 3587 @knightfrank

Ms Pamela Phua, Asst. Marketing & Communications Manager, Knight Frank Malaysia

pamela.phua@my.knightfrank.com +603 2289 9669 @KnightFrank_my

Notes to Editors

Knight Frank LLP is the leading independent global property consultancy. Headquartered in London, Knight Frank has more than 13,000 people operating from over 400 offices across 58 countries. These figures include Newmark Grubb Knight Frank in the Americas, and Douglas Elliman Fine Homes in the USA. The Group advises clients ranging from individual owners and buyers to major developers, investors and corporate tenants.