October 9, 2013

Asia/Pacific Soon to Be World’s Biggest HNW Market

Report says North America held slight edge in 2012

The wealthy population of Singapore has risen 10.3%. The wealthy population of Singapore has risen 10.3%.

The Asia-Pacific region is expected to become the largest high-net-worth wealth market by 2015, and possibly as early as 2014, according to the 2013 Asia-Pacific Wealth Report, published by CapGemini and RBC Wealth Management.

The region’s annualized growth rate from 2012 to 2015 will be 9.8%, the report said, compared with 5.3% for the rest of the world. This puts Asia-Pacific’s wealth on track to reach $15.9 trillion by 2015.

Since 2007, Asia Pacific’s HNW population has surged by 31% and its wealth by 27%, well ahead of 14% and 9% increases, respectively, in the rest of the world.

Even so, strong HNW population growth in 2012 allowed North America, with 3.73 million wealthy people, to regain the top spot from Asia-Pacific, with 3.68 million, after falling to No. 2 in 2011.

The report defined HNW individuals as those having investable assets of $1 million or more, excluding primary residence, collectibles, consumables and consumer durables.

Most major Asia-Pacific markets grew by double digits in 2012, while other regions experienced mixed growth rates. Japan, where the region’s HNW population and wealth have long been concentrated, grew more moderately.

The changes in HNW population and wealth between 2011 and 2012:

  • Hong Kong: population 35.7%, wealth 37.2%
  • India: population 22.2%, wealth 23.4%
  • Indonesia: population 16.8%, wealth 17.9%
  • Australia: population 15.1%, wealth 15.5%
  • China: population 14.3%, wealth 15.6%
  • Thailand: population 12.7%, wealth 19.3%
  • South Korea: population 10.9%%, wealth 11.8%%
  • Singapore: population 10.3%, wealth 11.5%
  • Taiwan: population 7%, wealth 7%
  • Japan: population 4.4%, wealth 5.2%
  • Other markets: population 14%, wealth 15.3%

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Check out Tax-Weary U.S. Millionaires Move to Cayman Islands, Hong Kong for Relief on ThinkAdvisor.

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