Australia’s ultra-wealthy population predicted to rise by 20%

06 March 2019

New data prepared exclusively for The Wealth Report highlights that the number of ultra-wealthy people in Australia (those with net assets of US$30 million or more) is expected to rise by 20% over the next five years, equivalent to an extra 600 ultra-wealthy people. 

 
The data provided by GlobalData WealthInsight highlights that the ultra-wealthy population is projected to grow at an accelerated rate when compared with the past five years, which saw ultra-high-net-worth individuals (UHNWI) numbers rise by 18% both globally and in Australia. 
 
According to Knight Frank’s Head of Residential Research, Australia Michelle Ciesielski, “GlobalData WealthInsight predicts the number of UHNWIs globally will rise by 22% over the next five years to 2023 – so an extra 43,000 ultra-wealthy people – taking the global number to nearly 250,000. This growth was 4% in 2018 to stand at 198,000 UHNWIs.
 
Ms Ciesielski said, “Locally, UHNWIs are projected to rise by 20% over the next five years – equating to an extra 600 ultra-wealthy people living in Australia – in comparison with 12% growth over the past five years. In 2018 alone, we saw the Australian UHNW population grow by 4% to currently stand at 3,060 UHNWIs.”
 
Knight Frank’s Head of Residential, Australia Sarah Harding said, “Globally, Australia remains one of the top destinations for ultra-high-net-worth individuals. For example, we know Chinese and South-East Asian buyers continue to look at familiar global markets, such as Sydney, Melbourne, London and Hong Kong, which offer language advantages and immigration possibilities, as well as remaining outside any trade disputes.
 
“According to Knight Frank’s Attitude Survey, almost half of UHNWIs in Australia saw the most significant increase in wealth in 2018, with 93% of the wealth advisors surveyed reporting an improvement in their clients’ fortunes and 72% expecting their clients to increase their wealth in 2019.”
 
Ms Harding said, “Across Australia’s major cities, GlobalData WealthInsight predicts a fairly consistent rise in ultra-wealthy populations. Sydney and Brisbane’s UHNW populations are expected to rise by 20% over the next five years, while Melbourne and Perth are forecast to rise by 21%.”
 
Ms Ciesielski said, “Global wealth creation will remain constant in 2019. Although growth was good in 2018, it was not able to replicate the outstanding performance of equity markets, prime property and luxury investments a year earlier. 
 
“There are headwinds looming with potential moderation in wealth growth, with global political and economic concerns becoming more complex. There is increased uncertainty and upheaval with all eyes on the rising trade tensions between China and the US.
 
“Despite this, 2019 will still see the number of millionaires (those with net assets of US$1 million or more) exceed 20 million for the first time ever. Some 6.6 million of these individuals will be based in North America, with 5.9 million in Europe and a further 5.8 million in Asia.”
 
According to Ms Ciesielski, globally, the high-net-worth individual (HNWI) population is projected to rise by 19% over the next five years – equating to an extra 3.8m millionaires – compared with growth of 13% over the past five years. 
 
“This growth was 3% in 2018 to record 19.9 million HNWIs globally,” said Ms Ciesielski.  
 
“In Australia, the HNW population is projected to rise by 18% over the next five years – equating to an extra 60,000 millionaires – compared with growth of 9% over the past five years. In 2018, we saw growth of 3% to register a total 330,000 HNWIs.
 
“There will be challenges over the coming year, but we’re also going to see opportunities for private individuals and corporations to create wealth by delivering a wide range of public goods –   most prevalent in countries without clear political leadership,” concluded Ms Ciesielski. 
 
 

Wealth distribution data - Australia

Millionaires (US$1M+)

% CHANGE

 

2013

2017

2018

2023

2013-2018

2017-2018

2018-2023

TOTAL

302,000

318,737

329,643

389,303

9%

3%

18%

Ultra-High-Net-Worth Individuals (US$30M+)

% CHANGE

TOTAL

2,740

2,951

3,062

3,675

12%

4%

20%

Billionaires (US$1B+)

% CHANGE

TOTAL

22

33

43

49

95%

30%

14%

 

Wealth distribution data – Top 4 cities in Australia

Ultra-High-Net-Worth Individuals (US$30M+)

% CHANGE

 

2013

2017

2018

2023

2013-2018

2017-2018

2018-2023

SYDNEY

782

838

875

1,054

12%

4%

20%

MELBOURNE

466

497

519

626

11%

4%

21%

PERTH

280

305

318

385

14%

4%

21%

BRISBANE

222

234

245

295

10%

5%

20%

 

Wealth distribution data – Global 

Millionaires (US$1M+)

% CHANGE

 

2013

2017

2018

2023

2013-2018

2017-2018

2018-2023

TOTAL

17,330,650

18,985,606

19,603,681

23,404,810

13%

3%

19%

Ultra-High-Net-Worth Individuals (US$30M+)

% CHANGE

TOTAL

167,669

191,251

198,342

241,053

18%

4%

22%

Billionaires (US$1B+)

% CHANGE

TOTAL

1,440

2,057

2,229

2,696

55%

8%

21%

 

For more information, please visit: http://www.knightfrank.com/wealthreport
 
For further information, please contact:
Rebecca Sands, Director, PR & Communications, Australia
 
Ends
 
Notes to Editors
Knight Frank LLP is the leading independent global property consultancy. Headquartered in London, Knight Frank has more than 15,000 people operating from 418 offices across 60 markets. The Group advises clients ranging from individual owners and buyers to major developers, investors and corporate tenants. For further information about the Company, please visit www.knightfrank.com.
 
 
Definitions
UHNWI – Ultra-high-net-worth individual – someone with a net worth of over US$30 million; excluding their primary residence.
HNWI – High-net-worth individual – someone with a net worth of over US$1 million; excluding their primary residence.
The Knight Frank Attitudes Survey – Unique survey based on the responses of 600 private bankers and wealth advisors who between them manage over US$3 trillion of wealth for UHNW clients. 
GlobalData WealthInsight – Provider of the 2018 high-net-worth wealth distribution data.