The Elite
The Global One Per Cent. Who and what exactly are they? SO pored over the just-released 2012 Wealth Report and we’ve gleaned the “one per cent” in question belong to the 63,000 super-elite households in the world — classified as high net worth individuals (HNWI) — whose earnings amount to US$100 million or more in assets. Did someone say super-wealthy? While The Rock is home to our fair share of the well-to-do, alas, it’s nowhere in sight on the top-10 list of places where the “one per cent” call home.
Naturally, the world-famous cities of London, New York, Hong Kong and Paris made the cut (all four are viewed as highly favoured addresses of the most influential HNWIs).
The royal prestige and allure of Monaco makes it remain the most expensive residential location in the world, with one square metre there now worth $58,300. Prime locations in Cap Ferrat and Hong Kong are next in line as addresses where the wealthy lay their heads. But nowhere else has the cachet or price points for living quarters as North America and Europe, with the going price of real estate in the Big Apple and London in the region of $50 million for swanky townhouses; only those making bank with seven, not six zeros are in the realm of the truly affluent.
Note that lifestyle and investment remain the key drivers for luxury second-home purchases, with 16% of all HNWIs surveyed already owning a ski chalet, and 40% a beachfront property.
While The Wealth Report indicates a shift in wealth distribution towards Asian territories, with China, southeast Asia and Japan now having more centa-millionaires (those with over US$100 million in assets), the United States and United Kingdom are the top second-home destinations for the rich.
And what’s the attraction of the “one percent”? According to the Report, prime property is a key part of portfolios. Last year saw a global increase in allocation to real estate of 19%; the largest climbers in 2011 popularity for investment were bonds (+ 65%) and cash (+ 60%).
The Top 10 Cities of HNWIs
1. London
2. New York
3. Hong Kong
4. Paris
5. Singapore
6. Miami
7. Geneva
8. Shanghai
9. Beijing
10. Berlin
The projected key cities of HNWI’s in 2022 are:
1. London
2. New York
3. Beijing
4. Shanghai
5. Singapore
6. Hong Kong
7. Paris
8. São Paulo
9. Geneva
10. Berlin
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