The Wealth Report 2013

This year's wealth report came across my desk, download here..

http://resources.knightfrank.com/GetResearchResource.ashx?versionid=1699&type=1

Irrelevant to many but it's interesting to see how the ultra wealthy invest.

The Wealth Report provides the definitive global perspective on prime property and wealth. It includes a guide to the performance of the world’s key luxury residential markets and HNWI growth forecasts over the next decade for over 80 countries and cities.
 
I bet the guy who buys this $360m penthouse with it's own waterslide reads the wealth report.

pool-620x349.jpg


The title of the world's most expensive penthouse has returned to the playground for the super rich – Monaco.

The developers of a five-level penthouse on the Mediterranean will be hoping to find a buyer willing to spend $360 million when it hits the market next year.

Ideally, the buyer will enjoy a dip: the proposed penthouse has a private waterslide connected to an "infinity-edge" swimming pool 150 metres above the ground.

Spread over 3300 sq m, the penthouse will sit atop the Tour Odeon building, which is expected to be completed by late 2014.
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The reported price estimate is 18 times more than the most expensive apartment offering in Australia.

The penthouse in The Residence Hyde Park in Sydney and the private eyrie atop the HMAS Lonsdale building in Port Melbourne are both listed at about $20 million.

Although the price guide for Tour Odeon might seem outlandish, it is not the first time a penthouse has broken the $300 million barrier in Monaco.

In 2010, British property developers Christian and Nick Candy sold a 1625 sq m penthouse for $308 million.

At the time it was reported than the buyer was a member of Dubai's royal family, the Al-Maktoums.

Over the past year, a spate of properties have claimed the "most expensive" tag.

Last year, all eyes in the industry were on the penthouse on the One57 building on Central Park, New York, which reportedly sold for more than $US90 million.

The aggressive international marketing of these properties is a sure sign that the super-rich are doing well. And now they have a slide too.
 
clearly we are in a bubble Nomadic... this is priced way more than the historical 4.363332 multiple of earnings that was the norm in 1962. am sure I have a graph for it here somewhere....
 
clearly we are in a bubble Nomadic... this is priced way more than the historical 4.363332 multiple of earnings that was the norm in 1962. am sure I have a graph for it here somewhere....

Love it! :D

And how could a median income earner in Monaco ever expect to buy a median priced property! Clearly its a ponzi scheme bubble which can only end one way... ;)

Cheers,
Michael
 
I found this sub-article on p31 very insightful and interesting for us local property investors...

The big question
What impact will Asian HNWIs have on international prime global property markets over the next 10 years?
Sudhir Vadaketh

The amount of private wealth generated in Asia is increasing in tandem with the region’s rapid economic growth and this is leading to huge demand for everything from Alba white truffles to Malaysian durians. But Asian HNWIs are more than just voracious consumers. They are also savvy investors who see huge potential in prime global property.

Asians love property. In October 2012 the Economist Intelligence Unit surveyed 160 private bankers around the world on the outlook for their industry and various asset classes. In Asia, respondents expected demand for property to outstrip other assets. One banker noted that investors in Asia are keen on property no matter what the state of the economy.

However, there are two reasons to believe that over the next decade Asian HNWIs will become relatively more interested in overseas properties. First, portfolio diversification. Asian investors are increasingly concerned with macro risks to their domestic economies, after several years of stellar growth. These include political issues – such as the standoff between China and Japan over the Diaoyu/Senkaku islands – and policy risks, like further cooling measures triggering a property price correction in cities such as Hong Kong and Singapore.

The second reason is growing comfort levels. As more Asian companies expand abroad, so owners and senior managers are becoming more familiar with foreign cultures and business practices, moderating the risk premium hitherto attached to these markets and asset classes.

So, which nationalities are most likely to venture abroad? In addition to Chinese investors, the next decade will likely see more investors from emerging markets such as India, Indonesia, Mongolia, the Philippines and Vietnam. Expect HNWIs from frontier markets like Myanmar and Sri Lanka to become more prominent as they seek safe havens for their newfound wealth to mitigate the risk of renewed political tensions at home.

And where might Asian HNWIs invest? In destinations with adequate liquidity, transparency, and an existing Asian population, such as London, Melbourne, New York, San Francisco, Sydney and Vancouver. There will be opportunities in emerging markets where Asian firms are doing more business, including Brazil, the Middle East, Russia, South Africa and Turkey.
And more will venture out of the cities to rural and beachfront properties,
driven by a desire for vacation homes and by perceived value.

If all those new Asian HNWIs are into property and growing in population by as much as predicted it will have a significant impact on Australian markets such as Melbourne and Sydney as mentioned for the reasons mentioned.

Think back to the Japanese in the 80's and their impact on the Gold Coast. Now fast forward to the next decade and a population of over a billion industrialising and liking property as an investment vehicle. Premium Australian markets stand to benefit significantly from the ensuing wealth creation and investment environment.

Cheers,
Michael
 
This year's wealth report came across my desk, download here..

http://resources.knightfrank.com/GetResearchResource.ashx?versionid=1699&type=1

Irrelevant to many but it's interesting to see how the ultra wealthy invest.

The Wealth Report provides the definitive global perspective on prime property and wealth. It includes a guide to the performance of the world’s key luxury residential markets and HNWI growth forecasts over the next decade for over 80 countries and cities.

Interesting! Thanks for sharing...
 
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