_Wealth Report 2018: Australia’s ultra-wealthy population projected to increase by 37%

New data prepared by Wealth X, exclusively for The Wealth Report, shows that the number of ultra-wealthy people (those with net assets of US$50 million or more) rose by 10% in 2017 – taking the global population to 129,730, with a combined worth of US$26.4 trillion. This highlights a notably more rapid rate than in the previous five years, when there was a cumulative increase of 18%. 

The trend in wealth creation mirrors the growing momentum of the global economy since the start of 2017. Solid forecasts for the global economy underpin Wealth X’s prediction that the number of individuals with net assets of US$50 million or more will grow by a further 40% by 2022.

The number of ultra-wealth people in Australia rose by 9% in 2017, bringing the population to 1,260. This is equivalent to 5.2 ultra-wealth individuals per 100,000 of the Australian population. Together, they have a combined worth of US$269 billion. 

Over the next five years, the number of ultra-wealthy people in Australia is projected to increase by 37% to 1,720. This growth can be attributed to several factors. Firstly, we’ve seen significant growth in prime property prices. Secondly, despite recent instability, the equities market has also seen gains over the past year. Additionally, Australia is the third-most preferred global destination for the world’s ultra-high-net-worth individuals (UHNWIs)ⁱⁱ  to emigrate, behind the UK and the US, according to Knight Frank’s annual Attitudes Surveyⁱⁱⁱ, produced for The Wealth Report.

Australia ranked in the top five destinations of where UHNWIs plan to buy prime property in 2018. According to the Attitudes Survey, Malaysia, Singapore, China, Hong Kong and the Philippines scored high for those planning to buy Australian prime property throughout the year. 

The Attitudes Survey found that obtaining secondary passports and residencies is a growing trend for the world’s wealthiest people. Globally, 34% of UHNWIs already hold a second passport and 29% are planning to purchase one, while 21% are considering emigrating permanently.

Australia ranked seventh when looking at the cost and access of citizenship and residency by investment programmes around the world, with a substantial minimum capital requirement of US$1.2 million, according to the Henley Passport Index.

The Attitudes Survey also found that in Australia 27% of UHNWIs hold a second or dual nationality passport, while only 6% are considering emigrating permanently. This highlights the popularity of Australia as a destination.