Number of ultra-rich in Singapore expected to grow by nearly 18 per cent in 2027: Knight Frank

The number of ultra-wealthy people in Singapore is expected to grow 17.7 per cent to around 5,300 between 2022 and 2027, according to a report put out by real estate consultancy Knight Frank.

According to the consultancy's latest edition of The Wealth Report, the number of ultra-high-net-worth individuals (UHNWI) in Singapore rose 6.9 per cent to 4,498 in 2022, up from 4,206 the previous year.

This is even as the number of ultra-wealthy individuals fell by 3.8 per cent globally in 2022, following a record climb of 9.3 per cent in 2021. The report defines UHNWIs as those with a net worth of at least US$30 million (S$40.4 million), including their primary residence.

Leonard Tay, Knight Frank Singapore's head of research, attributed the drop in the global number of ultra-wealthy individuals to the weak performing equities and bond markets.

"On the other hand, 100 prime residential markets globally saw an average price growth of 5.2 per cent and luxury investment assets grew 16 per cent which helped steady the decline," he added.

Globally, among the top 10 countries with the fastest-growing UHNWI populations in 2022, Singapore is ranked eighth. The UAE was first with an 18.1 per cent growth rate, followed by Tanzania, with 13.9 per cent. Coming in third place was Brazil, with an 11.2 per cent growth rate.

Other Asian countries that ranked among the top 10 were Malaysia, which came in sixth place with a 9.4 per cent growth rate, and Indonesia, in seventh place with a nine per cent growth rate.

While the number of ultra-wealthy declined in 2022, the report found that the number of high net worth individuals — defined as those with a net worth of US$1 million or more, including their primary residence — expanded by 2.9 per cent to almost 70 million worldwide in 2022.

The top three countries with the highest high net worth population growth were Malaysia, Brazil and Indonesia.

Looking ahead, Knight Frank expects the global UHNW population to grow by 28.5 per cent to almost 744,000 over the next five years, from 579,625 in 2022. But "this expansion marks a slowdown from the 44 per cent growth seen between 2017 and 2022," said the consultancy in a press release.

Of the top 10 countries which are forecast for growth, Hungary is expected to come in first place with a projected growth rate of 74.4 per cent, followed by Turkey and Poland.

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This article was first published in The Business Times. Permission required for reproduction.