10 stats on how Asia's ultra rich invest on property

Only around 4% of Asian ultra rich men own ski chalet abroad but the number is expected to keep growing.

At the end of 2011, The Wealth Report asked Citi Private Bank’s wealth advisors around the world to provide an insight into their clients’ attitudes on property, both as a home and an investment; and their
investment decisions. The results of the survey, which represent the attitudes of over 4,000 individuals worth on average over $100m each, are summarised here.

1. Asian’s interest on property has not waned despite the ongoing global financial crisis.

Majority of Asian ultra rich, defined as those with net worth above $100m, expressed intension to increase their property portfolio but with caution. 42% of them indicated that they will only increase a little.

2. Buying residential properties is the top priority of Asia’s ultra rich men

 3. HongKongers, Chinese and Singaporeans are the only Asian nationalities which made it to the top 10 list of prime second home buyers abroad but others are growing in importance

Top Nationalities are Russian, HongKong, British, French, American, Swiss, German, Chinese, Singaporean, Canadian.

Asian nationalities growing in importance are: Indian, Malaysian, Australian and Indonesian

Asian nationalities to watch: Mongolian, Filipino, and Vietnamese.

 4. Assuming an Asian has more than $20m to spend for luxury homes abroad, he would start looking first at countries with high degree of economic openness. He wouldn’t care less if the freedom for speech was properly exercised in that country.

5. In choosing a second home location, two major factors of consideration are investment opportunities and lifestyle.

6. London is the most favorite prime second home location for Asia’s ultra rich men.

7-8. 7-8 Ski Chalet and beachfront properties are becoming popular luxury homes for Asia’s ultra rich men.

9. Ultra rich men in Asia primarily employ an asset allocation strategy that seeks to maximize capital appreciation of asset over the long term.

10. Asia’s ultra rich men fund investments on property through cash and borrowing.