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Wednesday, March 06, 2019, 22:55
China's ultra rich population seen to rise in next 5 years
By Sun Feier
Wednesday, March 06, 2019, 22:55 By Sun Feier

The number of ultra rich individuals on the Chinese mainland is expected to grow by 35 percent over the next five years, creating a huge demand for wealth management, according to Knight Frank’s 2019 annual wealth report.

Ultra-high-net-worth individuals refer to those with assets of $30 million or more.

Although the growth rate is set to slow in China — at 6 to 6.5 percent — as we gather from the ongoing 13th National People’s Congress, it still delivers a huge growth of wealth potential

Nicholas Holt

head of research at Knight Frank, Asia Pacific

“Although the growth rate is set to slow in China — at 6 to 6.5 percent — as we gather from the ongoing 13th National People’s Congress, it still delivers a huge growth of wealth potential,” Nicholas Holt, head of research at Knight Frank, Asia Pacific, said on Wednesday.

The report showed Chinese mainland’s wealthy population is estimated to hit 13,429 by 2023, compared with last year’s 9,953.

On a regional basis, 8 of top 10 global regions are in Asia regarding wealth growth over the next five years, with India taking the top spot at 39 percent, followed by the Philippines, China, Indonesia and Vietnam.

Hong Kong, which boasts the second-highest prime property prices worldwide, expects to see a 10 percent correction in luxury residential prices this year, the report said.

Holt also noted that ultra-high-net-worth individuals are less optimistic about the economy for 2019, with an anticipated slowing of China’s economy and lingering Sino-US trade tensions. Thus, wealthy people tend to leave more cash in their pockets amid cautious market sentiment.

According to the report, a key global residential index has shown that Hong Kong’s property prices remained the second-highest worldwide for the seventh consecutive year last year, with $1 million just able to buy an apartment of only 22 square meters. Monaco in Europe ranked first.

Thomas Lam Ho-man, executive director and head of valuation and advisory at Knight Frank, said they expect Hong Kong’s luxury residential prices to drop by 10 percent, while prices of super luxury residential flats are projected to fall by between 0 and 5 percent this year.

He said the property market will be influenced by various factors, such as interest rate changes, housing and land supply, the government’s policy direction, geopolitical uncertainties, and the city’s equity market performance.

joycesun@chinadailyhk.com

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