Commercial & Industrial Property News Update

Asia Pacific - Ultra-wealthy Are Long-term Property Investors

October 5, 2012

The ultra-wealthy of Asia put in nearly a third - or USD 70 billion -of the total real estate investments made by Asian investors in 2011.

Property investment seems to be a fundamental growth vehicle for ultra-high net worth individuals (UHNWIs) in Asia. Last year, the ultra-wealthy committed USD 70 billion to real estate investment, making up nearly one-third of the total amount invested by Asian investors.

This was according to a report from Wealth-X, a Singapore-based consultancy firm, which added that real estate made up USD 250 billion out of USD 1.9 trillion - the estimated net worth of Asia's UHNWIs.

"There are so many ultra-high net worth individuals globally, 187,000 in total, 43,000 in Asia alone," said Mykolas Rambus, CEO of Wealth-X.

"We are talking about over USD 25 trillion of wealth they have in excess. For example the average ultra-high net worth (individual) has in China, USD 41 million in liquid assets in cash and cash equivalent, ready to invest."

Wealth-X's report lists China, Hong Kong, Indonesia, Malaysia and Singapore as the countries where the majority of Asian UHNWIs come from.

Property analysts said that the typical ultra-wealthy Asian investor is not a real estate speculator, and is instead highly likely to invest strategically and for the long run.

"These ultra-high net worth individuals don't make decisions on a whim," said Colin Tan, research head of Chesterton Suntec.

"They may have considered their decisions to invest in a property or the real estate market over a period of time. They are likely to follow a long-term approach and accumulate properties," he said.

Tags: Income properties, Commercial real estate, Investment properties

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