Super-rich people’s number in Vietnam forecast to increase by 26% in 5 years

Cơn đồng bóng Phạm Nhật Vượng, cấu trúc một thân hai đầu của chế độ toàn  trị Việt Nam - Thời báo
Pham Nhat Vuong likely the richest man in Vietnam

According to Knight Frank, this rate reflects the dynamic development of the Asia-Pacific region, second only to North America in terms of the growth of the super-rich population.

Knight Frank’s latest Wealth Report forecasts that the global super-rich population will increase by 28% between 2021-2026, with Asia and Oceania having the highest growth (33%), followed by North America (28%) and Latin America (26%).

Asia-Pacific remains one of the world’s leading wealth centers, as evidenced by the projected growth of the rich and super-rich between 2021-2026. The number of billionaires will also grow faster than the global average over the same period,” said Victoria Garrett, Head of Residential Real Estate at Knight Frank APAC.

Particularly, the growth in the number of super-rich people in Vietnam is 26%, equivalent to Hong Kong and Taiwan (China). “We expect Vietnam to become one of the focus points of this report in the coming years based on the economic background as well as the increasing position of Vietnam in the international market,” said Mr. Alex. Crane, CEO of Knight Frank Vietnam said.

A testament to Vietnam’s growth potential pointed out by Mr. Alex Crane is that the selling price of luxury apartments has exceeded $10,000/m2 this year. On the other hand, discretionary spending by the rich and super-rich is moving towards luxuries like watches and wine, with sales up 16% for both.

In fact, the total value of imported watches increased by 28.2% per year between 2016 and 2020, despite the impact of the Covid-19 pandemic. Domestic car sales as well as the total value of imported wine in the pre-pandemic period (2016-2019) also maintained positive growth of 12.9% and 9.8% per year, respectively.

Globally, Flora Harley, deputy editor of Knight Frank’s The Wealth Report, said that on average, nearly two-thirds of the wealth of the super-rich is allocated to real estate. In which, nearly 1/3 of total assets are in the main house and second house, the rest is invested directly or indirectly in real estate portfolios.

The report also reveals the total value of private investment in global commercial real estate to be $405 billion in 2021, up 52% ​​year-on-year and 38% higher than the five-year average. epidemic.

Forecasts for this year, Knight Frank Attitudes survey show that 23% of the super-wealthy population plan to invest directly in commercial real estate. By segment, private investment in office real estate will account for the majority (43%), followed by industrial and logistics real estate (17%), as well as housing (16%).

Property appreciation, from real estate to stocks and luxury goods, has increased wealth for those rich enough to own portfolios,” said Flora Harley.

According to Knight Frank, the super-rich are individuals with a net worth of $30 million or more, including primary residence real estate. Statistics from this unit show that in 2021, Vietnam currently has about 1,234 super-rich people.

Translated by from the original source: