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Some 47 percent of the wealth advisors surveyed by Knight Frank said their ultra-high net worth (UHNW) clients will invest more in commercial properties over the next 10 years, with offices and hotels predicted to remain the investments of choice.
The report also revealed that the respondents said warehousing and logistics could overtake shopping centres and high street retail.
However, the main obstacle for investing into commercial properties is the lack of experience in this sector. This was particularly true for Singapore UHNWIs, as 75 percent of wealth advisors with clients in there cited this a main barrier.
Meanwhile, the UK emerged as the top overseas destination to buy commercial property in the past 10 years for clients based in China, Hong Kong, India and Singapore. The United States is the preferred choice for Singaporean respondents, while Singapore is the top pick for commercial investments by Indian nationals.
“Despite the recent moderation of prices and rents of Singapore commercial properties, we see a gradual rise in interest amongst the Singapore wealthy for non-residential segment, mainly targeting Singapore, the UK and Australia,” Tan added
Knight Frank’s 2016 Wealth Report tracks UHNWIs in 98 cities across 91 countries.
The survey was based on the views of about 400 leading private bankers and wealth advisors across the globe who manage assets for around 45,000 super-rich clients with a collective wealth of more than US$500 billion.
Singapore retained its position as the second Asian city with the highest number of UHNWIs, according to the 10th edition of Knight Frank’s Wealth Report.
Singapore retained its position as the second Asian city with the highest number of ultra-high net worth individuals (UHNWIs), according to the 10th edition of Knight Frank’s Wealth Report.
However, the republic posted a decline in the number of UHNWIs, or people with a net worth of at least US$30 million (S$42 million). From 2,565 in 2014, it fell to 2,360 last year.
Globally, Singapore bagged the sixth place in terms of UHNWI population, behind New York (5,600), London (4,905), Hong Kong (3,854), Moscow (3,457) and Los Angeles (2,820). At the 7th spot is Beijing (2,073), followed by Taipei (2,062), Tokyo (2,035) and Chicago (2,030).
Meanwhile, the republic has replaced Hong Kong as the third most important city to the world’s super-rich. Although the latter was bumped into the fourth spot, it is home to largest number of super-rich in Asia.
London remained as the most important city for UHNWIs, followed by New York. At the fifth spot is Dubai, then Shanghai and Paris. Completing the top ten are Sydney, Beijing and Geneva.
“The attributes that Singapore has built over the decades — a conducive business environment, clear regulatory framework and a progressive ecosystem of financial and business services — have augmented its status amongst the wealthy as a preferred location to live and do business in Asia,” said Alice Tan, Head of Consultancy & Research of Knight Frank Singapore.
“Singapore’s excellent infrastructure, education and healthcare systems further anchors its global city accolade by promoting a vibrant economy, which will in turn boost the country’s real estate landscape within the next decade.”
Nikki De Guzman, Editor at CommercialGuru, edited this story. To contact her about this or other stories email nikki@propertyguru.com.sg
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