Knight Frank surveyed more than 600 private bankers, wealth advisers, intermediaries and family offices managing over $US3 trillion in wealth combined. According to the responses, Australia is the fourth most favourable place to buy a new home, behind the UK, the US and France.
While billionaires including venture capitalist Peter Thiel, who co-founded PayPal and was an early investor in Facebook, have long looked to buy property in New Zealand to hide out from an apocalypse, Knight Frank said global buyers were increasingly interested in retreats in Tasmania.
“Prime values along Hobart’s Derwent River are up 142 per cent over the past decade,” Knight Frank’s Michelle Ciesielski said. “Those seeking a better work-life balance and less exposure to climate risk are attracted by the opportunity to design a modern, sustainable home.”
The report also compared what $US1 million worth of prime property bought in terms of square metres in cities around the world. In Sydney $US1 million will buy 43 square metres of prime property, compared to 22 square metres in Hong Kong, 33 in London and 64 in Tokyo.
Knight Frank predicted Sydney would lead the globe in the greatest increases in luxury residential rents this year, at 12 per cent – double the predicted growth in the next fastest growing market, Auckland, New Zealand.
The result demonstrates how tight the housing market is in Sydney. “Prime rents are moderating from their post-pandemic highs but a lack of stock in key cities will keep annual growth in positive figures for most advanced economies,” the report says.
Residential prime real estate prices in Sydney were forecast by Knight Frank to rise by 5 per cent in Sydney this year, and by 3 per cent in Melbourne.
Family office adviser Joel Cann, from Felix Bay Group, said stable banking markets and sophisticated capital markets were another drawcard for wealthy families.
“Unsurprisingly, Australia has a greater density of UHNW families compared to many other countries,” he said.
The Knight Frank report examined the performance of investment in luxury collectibles, such as art, jewellery, wine, furniture and cars, finding an estimated 20 per cent of ultra-high net worth portfolios were allocated to such asset classes.
Despite strong sales at auction for such items, Knight Frank’s index of their overall value went backwards by 1 per cent over 2023.
“[This was] pulled down by falling values in rare whisky (-9 per cent), classic cars (-6 per cent), handbags (-4 per cent) and furniture (-2 per cent),” the report says.
“While art (+11 per cent), jewellery (+8 per cent) and watches (+5 per cent) helped offset some of these falls, our assessment reveals a need for an ever more discerning approach from investors, with significant volatility by sub-market.”
FAQs
In Australia, your net worth now needs to surpass $7 million to be considered a 1 percenter. To become an 'ultra high net worth individual' or UHNWI as Knight Frank describes it, you need to be worth more than $46 million.
How much money do you need to earn to be in the top 1% in Australia? ›
Australians previously needed to have $US5. 5 million ($8.41 million) to count themselves among Australia's 1 per cent, but the threshold has dropped to US$4.67 million ($7.18 million), according a 2024 wealth report by global real estate consultancy Knight Frank.
How much money do you need to be in the top 1%? ›
You need more money than ever to enter the ranks of the top 1% of the richest Americans. To join the club of the wealthiest citizens in the U.S., you'll need at least $5.8 million, up about 15% up from $5.1 million one year ago, according to global real estate company Knight Frank's 2024 Wealth Report.
How much wealth do you need to be in the top 1? ›
It now takes at least $5.8 million to join the richest echelon in the world's largest economy, almost 15% more than about 12 months ago, according to research from Knight Frank.
What salary is considered upper class in Australia? ›
The average Australian needs to earn about about $346,000 to feel rich - nearly $10,000 more than a year ago - according to a new survey. That figure was nearly five times greater than the average personal income of $72,753, according to the Australian Bureau of Statistics.
Is $100,000 dollars a good salary in Australia? ›
Indeed, landing a job that pays $100,000 would put someone in the top 20 per cent of income earners in Australia. The median full-time salary as of 2022 is a fair chunk less at about $78,000 gross, according to the Australian Bureau of Statistics.
Is $200 000 a good salary in Australia? ›
'As a single income $200k probably keeps you in middle class simply because most will spend more to live better lifestyles eg travel, sole occupancy dwellings, restaurants etc.
How much wealth you need to join the richest 1 globally? ›
You now need a net worth of at least $5.8 million in order to be part of that small but elite group, according to the upcoming 2024 wealth report from Knight Frank. That is a notable 12% increase from the $5.1 million needed just one year ago.
What is the top 0.5 net worth? ›
Data on net worth distributions within the top 1% indicate that one enters the top 0.5% with about $1.8M, the top 0.25% with $3.1M, the top 0.10% with $5.5M and the top 0.01% with $24.4M. Wealth distribution is highly skewed towards the top 0.01%, increasing the overall average for this group.
How much wealth is needed to be in the top 1 in India? ›
The report found that the net worth required to join the top 1% in India is $1,75,000 or Rs 1.45 crore. Here is everything you need to know about it.
Someone who has $1 million in liquid assets, for instance, is usually considered to be a high net worth (HNW) individual. You might need $5 million to $10 million to qualify as having a very high net worth while it may take $30 million or more to be considered ultra-high net worth.
What percentile is $6 million net worth? ›
You now need a net worth of $5.8 million to be among the richest 1% of Americans, report finds. Americans need a net worth just south of $6 million to break into the richest 1%.
What is a good net worth by age? ›
Average Net Worth by Age
From there, average net worth steadily rises within each age bracket. Between 35 to 44, the average net worth is $549,600, while between 45 and 54, that number increases to $975,800. Average net worth surges above the $1 million mark between 55 to 64, reaching $1,566,900.
What net worth is considered rich in Australia? ›
In Australia, your net worth now needs to surpass $7 million to be considered a 1 percenter. To become an 'ultra high net worth individual' or UHNWI as Knight Frank describes it, you need to be worth more than $46 million.
Is $250 000 a good salary in Australia? ›
One of the questions asked was what salary you need to earn to be considered rich in Australia in 2023. It turns out that figure is anything over $250,000 – or an average of $303,000.
Is $75000 a good salary in Australia? ›
Average Salary in Melbourne:
The average annual salary in Melbourne is $75,000. This figure is derived from more than 57,000 individual reports of salary and compensation.
Is 300k a good salary in Australia? ›
300k salary is crazy high. It is about the top 0.4% of income according to taxation statistics. Most people who make this much will have significant income from investments. You are looking at basically Senior Management at large, profitable companies, exceptional at sales, Partner, medical specialist.
Is 130k a good salary in Australia? ›
He explained that north of $130,000 was a more liveable wage if you're living in a major Aussie city. “If you want to live a more normal Australian lifestyle and live in a larger apartment or house, $130,000 north,” he told news.com.au.
How much do you need to earn in Australia to feel rich? ›
Do you feel rich? Well, the average Aussie says they'd need to earn a significant amount of money to feel rich, according to new research. A recent Finder's survey revealed the average Australian wouldn't consider themselves affluent until they were earning $345,819 per year.
