Surprising net worth you need to join Australia’s ‘top 1% club’


Australians wanting to be in the country’s top 1% for wealth need to have an individual net worth of US$5.5 million ($8.3 million), Knight Frank’s 2023 Wealth Report has found.
Surprising net worth you need to get in Australia’s ‘1% club’. Image source: Getty Images

The price of access actually falls well short of the definition of an ultra-high-net-worth individual (UHNWIs), which is US$30 million, estate agency and property consultancy Knight Frank says.

To be in the top 1% of wealth across Asia, the net worth required is even smaller – just US$3.5 million. Even in Monaco – which has the world’s densest population of super-rich individuals – the entry point for the principality’s 1% is US$12.4 million.

According to the report, total wealth held by UHNWIs shrank by 10% during 2022, which represents a collective decrease of around US$10.1 trillion. This includes a decrease in residential property values, commercial property values, fixed income, investments of passion and other assets.

Europe saw the largest decline in wealth (17%), followed by Australasia (11%) and the Americas (10%).

“The fall in wealth is unsurprising given the dramatic pivot in monetary policy that culminated in the worst performance for the traditional blended portfolio since the 1930s,” the report states.

Four-in-ten UHNWIs bucked the trend and saw an increase in their net worth.

Looking ahead, the report found that almost half of HNWIs are looking to increase their portfolio in 2023, with 46% looking to increase their cash reserves as the return on cash increases with interest rate rises. Four-in-ten HNWIs also intend to increase travel overseas and a similar proportion also plan to spend more on personal and leisure activities.

In terms of property investment, more than 40% of the total private cross-border capital is expected to be targeted at the office sector, with Australian office locations set to see robust demand, the report claims. A third of respondents globally were also looking to invest in healthcare-related assets in 2023, the second year in a row that the asset class topped the wish list.

Australia was one of the top five overseas markets that UHNWIs are most likely to invest in, with this sector of investors looking for markets with lifestyle benefits, currency diversification, stable political governance and high levels of transparency.

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