MANILA – There will be 260 new ultra-high-net-worth individuals (UHNWI) in the Philippines whose total net assets are $50 million and above by 2022, fueled by the bullish real estate market and the influx of Chinese investments, a survey by a property outfit says.
In its 12th “Wealth Report” launched in Manila on Thursday, property service provider Santos Knight Frank said they expect to see a total of 570 ultra-wealthy people in the Philippines by 2022 from 310 in 2017, or an 84 percent growth.
“That growth is driven mainly by bullish real estate industry, strong macroeconomic fundamental and will be further fueled by the influx of Chinese investments into the Philippines through the Belt and Road Initiative,” Rick Santos, chairman and CEO of property services provider Santos Knight Frank said.
A total of 541 global wealth advisers and private bankers representing 50,000 clients worldwide participated in the survey.
The Wealth Report incorporated the “Attitudes Survey” which presented issues influencing the wealthy’s decision-making process.
Based on the report, 78 percent of Filipinos are exposed to property investments compared to the global average of 56 percent.
In China, 39 percent of the rich’s portfolio is dedicated to property investments, while the average is 42 percent in the Philippines, Nicholas Holt, head of research for Knight Frank Asia Pacific, said.
He said 28 percent of Philippine clients are looking to purchase additional domestic residential homes in the next 12 months compared to the 22 percent global average.
The US, Philippines, Canada, Singapore and Australia are the top 5 preferred investments destinations of the ultra-wealthy individuals in the Philippines in 2017.
“The importance of property is also underlined when you look at the allocation from China and how that has changed over the last 12 months,” Holt said.
“Infrastructure and all these investments coming into the Philippines is certainly providing good long-term stable returns for investors,” he added.
Growth in office space take-up due to the influx of Chinese investors spill over to the demand for retail space, Jan Custodio, Santos Frank Knight senior director for Research and Consultancy, said.
“The Chinese business process outsourcing (BPOs) companies are able to take up space at a much quicker pace compared to traditional BPOs, and in terms of rates, they’re quite flexible in terms of negotiating, which is why the space take-up has been quick,” Custodio said. (ABS-CBN News)
