World's Millionaire Population Growing Fastest in Singapore, Malaysia and China

---

There is an old saying that says, "wealth drives markets". If that's the case, then the Far East is now the place to be for real estate developers, owners and investors worldwide.

Based on Chesterton Humberts' latest Prime International Residential Review: Q2 2010, the world's millionaire population is rising fast in the Far East with Singapore, Malaysia and China all recording growth of 35%, 33% and 31% respectively.

Report Highlights include:
 

• Asia Pacific leads the property market recovery.

• Slower rate of recovery for Europe and US markets in face of testing economic conditions.

• Rebound in millionaire population - HNWI numbers rising fastest in the Far East with Singapore, Malaysia and China all recording growth of 35%, 33% and 31% respectively.

• Monaco remains the most expensive area for resale property at €45,000 per sq/meter with St Jean Cap Ferrat coming second at €32,500 per sq/m and London coming third at €22,500 per sq/meter.

• Hong Kong, New York and London toping the new home sale prices per sq/meter at €19,500, €16,750 and €16,500 respectively.

Andrew Hawkins, head of international, comments: "Disparities in the performance of global residential markets remain apparent in the post-recession era.  The star performers are in the Asia Pacific region while recovery in Europe and North America is more labored with transaction volumes remaining well below pre-recession levels." 

Outside the Asia Pacific region, it is the prime segments which have in most cases recovered first.  This reflects the combination of a smaller supply of available properties and the greater purchasing power of HNWIs, who are seeking desirable properties still selling at a discount to pre-recession levels.  Appetite for prime residential property both for lifestyle and investment reasons remains firm although buyers are generally taking longer to commit to purchase decisions than in the pre-recession market.  Statistics from Primelocation confirm a healthy increase in buyer interest for high-end properties: searches for international property on their website rose by 109% between May 2009 and May 2010.

Hawkins further commented, "Prime property is serving its time honored role as a refuge in times of international upheaval and uncertainty in currency markets this year has motivated some buyers, particularly those in US dollar-based currencies, who have benefitted from the strengthening US dollar."

"Recent research indicating that the high net worth individual (HNWI) population is rebounding strongly, having risen by 14% in 2009 with collective wealth growing by 11.5% according to the Boston Consulting Group, is good news for the international second homes' market.  The number of millionaires is rising fastest in the Far East, while Switzerland has the highest concentration of millionaire households and the USA has the overall highest number of millionaire households."

Analysis of the quarterly Prime International Residential Property Values for Quarter 2: 2010, reveals that resale property values were highest per square meter in Monaco, St Jean Cap Ferrat and London at €45,000, €32,500 and €22,500. New build property values were more expensive per square meter then resale homes in Hong Kong, New York and London at €19,500, €16,750 and €16,500 respectively.

---