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GENERAL PROPERTY

Crazy rich Asians, Asia demi-billionaires to overtake US

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THE number of demi-billionaires – those with US$500 million or more in net assets – in Asia is set to overtake that of North America for the first time, according to Knight Frank.

Wealth data specialists Wealth-X forecast there will be almost 3,000 people demi-billionaires based in Asia by 2022, while the United States will remain the country with the biggest overall population of demi-billionaires – tipped to rise from 1,830 to nearly 2,500 over the next five years.

China is expected to see its demi-billionaire populace grow from 490 to 990, while the worldwide number is forecast to increase from 6,900 at the end of 2017 to 9,570 by 2022.

In its Wealth Report, Knight Frank cites strong economic growth, as well as rising asset prices as key drivers behind the growth in the world’s demi-billionaire population.

Knight Frank’s head of residential, Australia, Sarah Harding, said wealthy investors drive demand for prime property across global markets.

“Australia is fast becoming one of the top destinations considered by our clients in their global portfolios.

“We need to look on this global platform to truly appreciate the level of sophistication expected by the world’s wealthiest, including where they spend and invest; where they enjoy their downtime; and where they educate their children – now, and in the future,” she added.

The increase in wealth in Australasia is being helped by stronger local economic conditions and performance of property investments over the past several years, while international drivers such as equity and bond performance have spurred confidence.

The number of demi-billionaires in Australasia is tipped to increase by 29% from 70 to 90 by 2022.

The IMF forecasts 3.9% global GDP growth this year and next, up from 3.8% in 2017 and 3.2% in 2016, despite tension around global trade, political uncertainty in the UK and parts of the EU, and the rising of the prospect of rising interest rates.

Australian Property Journal