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Sunday, 16 March 2014

Issues in strategic marketing: Wealth shifts to Asia

13 March 2014
HONG KONG: The number of super-wealthy individuals in Asia is set to grow by 43% over the next decade, which will include growth rates of 99% in India and 80% in China, a new report has forecast.

That means Asia will overtake North America for the total number of Ultra High Net Worth Individuals (UHNWIs) in both regions by 2023, the Wealth Report 2014 has predicted.

The joint study, conducted by global property consultancy Knight Frank and Bank of China International, also expected the number of billionaires in Asia to grow by 66% to overtake Europe as the region with the largest population of billionaires within the next ten years.

The total number of Asian UHNWIs, which the report defined as individuals with net assets of $30m or more, is expected to rise to 58,588 by 2023 while the number of billionaires in China alone is set to reach 322, exceeding the total number of billionaires in the UK, Russia, France and Switzerland combined.

Nor will wealth generation remain restricted to China and India, the report said, because it expected the number of UHNWIs in Indonesia and Vietnam to grow a "stellar" 144% and 166% respectively.

These shifts in wealth distribution will also affect which cities will be regarded as the key global locations for UHNWIs and Knight Frank forecast that Mumbai will displace Paris to enter the list of top ten cities within the next ten years.

While New York and London should remain the top two global locations, Hong Kong is expected to overtake Singapore to take third place, followed by Singapore, Shanghai, Beijing, Dubai, Miami, Geneva and Mumbai.

Asia-Pacific cities are also leading the way in terms of global prime residential property price growth, the report noted – for example, Jakarta posted impressive growth of 38% between 2012 and 2013, followed by Auckland and Bali.

Data sourced from Knight Frank; additional content by Warc staff



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