Key takeaways
Last year entering the elite circle of Australia's wealthiest 1% became slightly more attainable.
Now, a net worth of around A$7.18 million is the new benchmark, down from the previous A$8.41 million.
Last year entering the elite circle of Australia's wealthiest 1% became slightly more attainable.
Amid economic shifts and a fluctuating Aussie dollar, the wealth threshold to be in this exclusive club dropped a little.
Now, a net worth of US$4.67 million (around A$7.18 million) is the new benchmark, down from the previous $US5.5 million (A$8.41 million), as revealed in Knight Frank's 2024 Wealth Report.
Sydney is making headlines
Interestingly, Australia slipped to seventh place globally in terms of the wealth required to be in the top 1%, a drop from its previous third-place standing.
Yet, the number of ultra-wealthy Australians (those with more than $US30 million) grew by 2.9% to 15,347, outpacing the global increase of 4.2%.
Ben Burston, Knight Frank’s chief economist, isn't surprised by this growth.
"With our high population growth, it’s only natural that our number of wealthy individuals rises.
Australia remains a highly sought-after destination," he explains.
Australia is an attractive country for buying a new home
Knight Frank's extensive survey, which includes over 600 private bankers and wealth advisers managing a whopping $US3 trillion, ranks Australia as the fourth most attractive country for buying a new home, just behind the UK, the US, and France.
Tasmania is emerging as a hotspot for global buyers seeking retreats, partly due to its appeal to those desiring a sustainable and balanced lifestyle.
Prime property values along Hobart’s Derwent River have skyrocketed by 142% over the past decade.
The report also sheds light on the global real estate landscape.
For instance, $US1 million in Sydney fetches 43 square metres of prime property.
This is in contrast to Hong Kong (22 square metres) and is more generous than London (33 square metres) but less so than Tokyo (64 square metres).
The Knight Frank report also delves into the world of luxury collectibles as an investment avenue.
Around 20% of UHNW portfolios are allocated to assets like art, jewellery, and rare wines.
Despite strong auction sales, there was a 1% decrease in the overall value of these collectibles in 2023, affected by varying performances in sub-markets.
