The number of Australian millionaires has grown substantially, with more ‘high net worth individuals’ in the country than Russia, Saudi Arabia or Hong Kong.
The number of people with more than $1million in assets rose from 234,000 in 2015 to 255,000 last year, taking Australia to ninth place in the world, according to Capgemini’s latest World Wealth Report.
Soaring house prices in Sydney and Melbourne are believed to be behind the increase, which has seen the Asia-Pacific region become the largest market.
The number of Australian millionaires has grown substantially, with more ‘high net worth individuals’ in the country than Russia, Saudi Arabia or Hong Kong (stock photo)
The number of wealthy individuals grew around the world in 2016, with nearly 16.5million people now millionaires.
The United States of America remained top the list with 4,795,000 millionaires and was followed close behind by Japan with 2,891,000 and Germany with 1,280,000.
However, Australia’s population grew by nine per cent, up from 3.5 per cent in 2015, landing the country ninth place, ahead of wealthy countries such as Saudi Arabia and Kuwait.
Capgemini, who put together the data, said the total number of high net worth individuals raked in a combined wealth of US$63.5 trillion last year.
| Country | 2015 Individual | 2016 Individuals | Growth (percentage) | |
|---|---|---|---|---|
| 1. United States | 4,458,000 | 4,795,000 | 8 per cent increase | |
| 2. Japan | 2,720,000 | 2,891,000 | 6 per cent increase | |
| 3. Germany | 1,199,000 | 1,280,000 | 7 per cent increase | |
| 4. China | 1,034,000 | 1,129,000 | 9 per cent increase | |
| 5. France | 523,000 | 579,000 | 11 per cent increase | |
| 6. United Kingdom | 553,000 | 568,000 | 3 per cent increase | |
| 7. Switzerland | 358,000 | 364,000 | 2 per cent increase | |
| 8. Canada | 321,000 | 357,000 | 11 per cent increase | |
| 9. Australia | 234,000 | 255,000 | 9 per cent increase | |
| 10. Italy | 229,000 | 252,000 | 10 per cent increase | |
| 11. Netherlands | 204,000 | 232,000 | 14 per cent increase | |
| 12. India | 200,000 | 219,000 | 9 per cent increase | |
| 13. South Korea | 193,000 | 208,000 | 8 per cent increase | |
| 14. Spain | 192,000 | 202,000 | 5 per cent increase | |
| 15. Russia | 152,000 | 182,000 | 20 per cent increase | |
| 16. Saudi Arabia | 167,000 | 176,000 | 5 per cent increase | |
| 17. Brazil | 149,000 | 164,000 | 11 per cent increase | |
| 18. Kuwait | 146,000 | 159,000 | 9 per cent increase | |
| 19. Norway | 137,000 | 155,000 | 13 per cent increase | |
| 20. Hong Kong | 142,000 | 148,000 | 4 per cent increase | |
| Source: Capegemini | ||||
Saudi Arabia (stock image of capital Riyadh), saw just a 5 per cent increase in their number of millionaires, landing them in 16th position
Globally, wealthy investors reported an impressive 24.3 per cent return from equity portfolios overseen by wealth managers.
‘More than 90 per cent of high net worth individuals cited equities as the most important contributor to their investment performance, and I think that resonates very strongly in our own market,’ Mr Gomm said.
In Australia equity played an equally important role, with property markets surging and leading to a ‘strong sense of optimism’.
‘A very significant proportion of their wealth can be attributed back to their equities investment portfolios,’ Capgemini Australia banking and capital markets industry practice director Phil Gomm said.
Russia (stock photo of Red Square) was ranked 15th in the Capegemini World Wealth Report, but saw a 20 per cent increase in high net worth individuals
Some of Australia’s richest individuals include billionaires such as mining magnate Gina Rinehart (left) and Crown Resorts businessman James Packer (right)
But many factors still inhibited wealth including the fiscal deficit, high household debt and government debt levels hitting 45 per cent in 2016.
‘And of course the uncertainty around China’s economy impacting volatility around our (Australia’s) commodity prices,’ Mr Gomm said.
‘It’s a pretty strong report card for Australia and there’s a sense of optimism that losses incurred during the GFC, where there was a swing back to cash and fixed income products, has been replaced by a move towards equities.’
Some of Australia’s richest individuals include billionaires such as mining magnate Gina Rinehart and Crown Resorts businessman James Packer.
The two are ranked on Forbes 50 Richest Australians, with a wealth of $8.5billion and $3.5billion respectively.
Soaring house prices in Sydney and Melbourne are believed to be behind the increase, which has seen the Asia-Pacific region remain the largest market of millionaires (stock photo)