The Wealth Report 2023: 10 key highlights in Asia-Pacific property markets
Despite a contraction in ultra-high-net-worth-individual wealth in 2022, we expect an increase this year as real estate continues to play its role in investment portfolios.
3 minutes to read
The Wealth Report is the ultimate guide to prime property markets, global wealth distribution, the threats and opportunities for wealth, commercial property investment opportunities, philanthropy and luxury spending trends.
Here we break down 10 key Asia-Pacific (APAC) highlights and trends from The Wealth Report 2023.
1. Optimism for 2023: Great expectations for ultra-high-net-worth-individuals (UNHWIs) wealth to increase after a contraction in wealth in 2022, with confidence stemming from India, Taiwan, Japan, and Australia.
2. APAC UHNWIs investment portfolio allocated to real estate: The Attitudes Survey, collating responses from more than 500 private bankers, wealth advisors, intermediaries and family offices, indicates that 35% of the total wealth of APAC UHNWIs population is allocated to their principal and second homes.
South Korea, Singapore, and India rank among the top three countries on this list.
3. Housing voted as the safest asset class: Residential property is voted as the safest and least volatile asset class as the average annual price change in prime residential property in APAC remained in the positive territory despite rising interest rates and dampening demand.
4. Top five attractive destinations for APAC’s wealthy population: 16% of APAC’s wealthy population is planning to buy an additional home in 2023, and the United States, the United Kingdom, Australia, Singapore, and Japan are amongst the top five destinations of interest.
5. Prime residential growth is slowing but it is not uniform: Markets registering the strongest price growth during the pandemic are amongst the biggest fallers – Wellington (-24%), Auckland (-19%), Seoul (-5%).
6. Singapore is among the top 10 cities for super and ultra-prime residential property sales in 2022: Up from 70th position in 2021, the country is viewed as a safe haven as a result of how the government handled Covid and kept the economy stable despite facing global economic headwinds and political tensions abroad.
7. Hong Kong and Singapore continue to be the most expensive real estate in APAC: For US$1 million, one square metre less can be purchased in Singapore in 2022 compared to 2021, while prices remained the same for Hong Kong.
8. Investment is a key driver of demand as the wealthy look to property as an inflation hedge: 18% and 14% of UHNWIs are planning to invest directly and indirectly in commercial property in 2023, with healthcare, offices, and private residential rented sector as their top investments of interests.
9. UHNWIs in the APAC region have contrasting appetites for commercial property: UHNWIs from Australia and Singapore are more risk-seeking and willing to invest more than US$20 million, while those from Chinese Mainland and Hong Kong SAR are more risk-averse and only willing to invest up to US$1 million on average.
10. The top three passions of APAC’s wealthy population: With regards to luxury collectibles, art, watches and wine rank among the top three passions for APAC’s wealthy population according to the Luxury Investment Index.
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