Wealth

This is where the ultra-wealthy want to put their cash: Knight Frank


Asia's rich favor homes in UK, Singapore: Knight Frank
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Asia's rich favor homes in UK, Singapore: Knight Frank

Expectations for rising interest rates haven't dampened the appetite of the world's ultra-wealthy to scoop up property investments, the Knight Frank's 2017 Wealth Report found.

"A lot of high net worth individuals, not only are they heavily invested in property, but they're showing intentions to increase their allocations to property over the coming years," Nicholas Holt, head of research for Asia-Pacific at Knight Frank, told CNBC's "Squawk Box" on Wednesday.

But he noted that after many global cities introduced cooling measures on the residential property markets, including additional taxes, ultra-high net worth individuals (UHNWI) have moved to increase their exposure to commercial property.

Asia's UHNWI allocated around 29 percent of their portfolios toward real estate, compared with the global average of 24 percent, the survey of around 900 private bankers and wealth advisors representing more than 10,000 clients found. The survey was released on Wednesday.

Yachts sit moored in front of Reflections at Keppel Bay property development in Singapore, on Tuesday, Nov. 17, 2015.
Sam Kang Li | Bloomberg | Getty Images

The survey respondents said their clients typically own around three homes, while Malaysian, Saudi Arabian and Taiwanese respondents averaged four homes.

The U.K. was the top market for owning overseas property, followed by Singapore and Hong Kong. Australia was the only market where the UHNWI were more likely to target their home market, with around 31 percent set to buy a domestic residence, compared with just 12 percent looking overseas.

The Chinese had the highest preference for buying overseas homes at 39 percent, despite increasingly stringent capital controls.

For Asian UHNWIs seeking commercial property investments, Singapore was considered a top destination, followed by the U.K., U.S. and Japan.

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