Thursday 23 November 2017

Property investment destinations for the super rich

A report by Savills in partnership with Wealth-X, a Singapore-based consultancy, illustrates just how private investment is playing an increasingly important role in the world of property.

Property investment destinations for the super rich

According to the Savills & Wealth X report, Samudra, a 2.5 acre estate on Thailand's Koh Samui island is more likely to attract a wealthy European or North American buyer. The property is listed with Richmont's for US$ 6 million.

March 27, 2014

According to the report, in 2008, $146bn of global private wealth was invested in the large-deal (above $10m) real estate market and by 2012 this had increased by 111 per cent to $308bn.

Meanwhile, corporate investment in the same sector rose by only 43 per cent to $594bn over the same period.
A key factor in this trend is the extraordinary wealth creation in Asia in recent years.

According to Knight Frank, the number of high net worth individuals (HNWI, defined as those with net assets of at least $30m) increased by 35.6 per cent between 2007 and 2012, and they have demonstrated a keen interest in property.

In recent years, Asian buyers have made an impact on cities around the world, with Hong Kong, Singapore, Mumbai and London among the top locations for residential investment.

95 per cent of property owned by wealthy Asians is located in cities, with just 2 per cent in towns and suburbs and a mere 4 per cent in waterside, rural leisure and ski locations.

This is in marked contrast to the buying habits of wealthy Europeans and North Americans.

Currently, 64 per cent of property owned by wealthy North Americans and Europeans is located in cities, 15 per cent in towns and suburbs and a combined 21 per cent in waterside, rural leisure and ski locations.

Savills suggests that if Asian buyers could be encouraged to diversify their portfolios and acquire suburban and leisure properties in the same proportions as westerners it could create a market for about $804bn of residential real estate globally.

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