Growing prosperity in Asia is having a spin-off effect on European and U.S. property markets as the new millionaires from emerging economies look to park their wealth in key cities in the developed world.
Asia has an estimated 43,000 ultra high-net-worth individuals with a combined wealth of $6.2 trillion, according to an estimate from Wealth-X, a company headquartered in Singapore that keeps tabs on individuals with more than $30 million in assets.
According to Wealth-X CEO Mykolas Rambus, a lot of Asia’s wealth is flowing to Europe and America, supporting real-estate prices in those continents’ prime locations.
The family of Hong Kong billionaire Cheng Yu-Tung, who owns the Chow Tai Fook conglomerate, with stakes in real estate, jewelry and hotels, recently purchased five luxury properties for $570 million in the U.S. in 2011, Rambus told CNBC.
Wang Hung, chairman of the Golden Eagle Retail Group, lives in Taiwan but has homes in California worth a combined $14 million. In London, buyers from Singapore, Hong Kong and Malaysia make up some 40 percent of the British capital’s apartment market, according to property consultants Jones Lang LaSalle.