ASEAN
SINGAPORE EMERGES AS THE LEADING WEALTH CAPITAL IN ASIA-PACIFIC ― The rapid growth of Asia as a major player in wealth generation is being powered by a flourishing middle class and a generation of innovative entrepreneurs, and Singapore stands at the centre of this rising tide of wealth that has been targeting the city-state, catalysing its real estate market and driving up inbound Foreign Direct Investments (FDIs) to 47% above 2019 levels. Knight Frank investigates.
The fabric, make-up, and raison d’être of many cities worldwide have been recast in the wake of the pandemic, with global real estate markets experiencing price and demand volatility. This has been underpinned by the ebb and flow of evolving demand drivers, which themselves have been heavily influenced by COVID-legacy factors such as the seemingly permanent shift to the adoption of hybrid working by many businesses to the outflow and subsequent return of residents from global city centres in search of more space and access to green sanctuaries. The most successful cities have been those governed by decisive leadership and rapid action to contain the virus, which fostered confidence, bolstered their safe-haven status and thrust them to the forefront of global businesses and the world’s elite, reshaping global capital flows. The rapid growth of Asia as a major player in wealth generation is being powered by a flourishing middle class and a generation of innovative entrepreneurs, and Singapore stands at the centre of this rising tide of wealth that has been targeting the city-state, catalysing its real estate market and driving up inbound Foreign Direct Investments (FDIs) to 47% above 2019 levels.
40 / orient-magazine.com
In Knight Frank’s inaugural “Rise of the Super Wealth Hub” series, we explore the evolving wealth landscape and its impact on property markets across these cities, a complex interaction that mirrors the intricate fabric of global prosperity. This report assesses burgeoning wealth hubs using six comprehensive indicators designed to measure the live, work, and play aspects. We define a “wealth hub” as a financial centre distinguished by a robust legal framework, political and economic stability, elevated living standards, abundant talent pool, and resolute allure for the affluent. It encompasses not only promising economic opportunities for career growth but also an exceptional residential environment and a dynamic range of leisure pursuits. All indicators utilised in this report are scaled from 0 to 1, with 1 representing the highest achievement and 0 the lowest. Singapore has cemented its position as the nerve centre, scoring on average 0.79, the highest among Dubai, Hong Kong, Sydney and Shanghai, as the leading wealth capital in Asia-Pacific. This is attributed to its robust legal framework (0.98), high enterprise excellence (0.97), luxurious lifestyle (0.91), thriving urban prosperity (0.75) and strong governance and talent (0.69). The region’s growing middle class and innovative entrepreneurs are among the
Issue 95 / November 2023
