Sydney, Melbourne top destinations for rich
More millionaires are pouring into Sydney and Melbourne and making Australia their home than any other city in the world, according to a new report.
Knight Frank’s annual The Wealth Report shows high net worth individuals flooded Australia’s two largest capital cities in 2016, with 4000 more calling Sydney home than in 2015, while in Melbourne there were 3000 more.
The influx of wealthy individuals (classified as those with a net worth of more than $1 million, excluding their primary residence) into Sydney and Melbourne dwarfs the inflow in other global cities, with Tel Aviv, Dubai, San Francisco and Vancouver, which all increased their number of millionaires by around 2000.
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The net inflow of high net worth individuals in each city was calculated by counting the number of millionaires who moved into or out of each city throughout 2016.
The Wealth Report tracks the spending patterns of high net worth and ultra high net worth individuals in 89 countries..
Perth rated a mention on the list, coming in at eighth position with 1000 more high net worth individuals.
Knight Frank Director, Residential Research, Australia, Michelle Ciesielski says lifestyle factors, the exchange rate and Australia’s relative affordability are behind the surge in rich residents.
“Sydney is at the top of the list for the highest net inflows of HNWIs globally, with the inflow representing growth of 4% of the HNWI population already based in the city,” Ciesielski says.
“Melbourne comes in at second on the list globally with an annual net inflow of 3000 HNWIs– approximately 4% of the existing Melbourne HNWI population.”
“Australia is increasingly well-positioned for the world’s wealthy as a good place to migrate and invest due to a number of factors, including lifestyle and relative security as HNWIs seek a safe haven from political upheaval.”
“Since the global financial crisis, the world’s wealthiest people have shifted their focus from the size of their returns to the safety of their capital. Given the lower global economic growth environment, and the heavy reliance on more volatile emerging markets, the personal safety of people in positions of wealth is increasingly being targeted as inequality grows.”
Millionaires sought to escape from other major international cities in huge number, particularly in Europe, with 7000 leaving Paris and 5000 leaving Rome.
Australasia as a whole was also popular among the super rich, with the number ultra high net worth individuals (people with a net worth of more than $30 million) in the region growing by 11% last year, with a further 70% expected to move here before 2026.