Singapore leads Apac wealth hub ranking as next-gen rethink real estate allocations: report

[SINGAPORE] The role of real estate in the Asia-Pacific region is shifting from standalone asset ownership to being part of a wider portfolio of asset classes, as wealth creation shifts towards next-generation industries.

While prime property remains a trusted store of value, it is viewed alongside broader allocations to equities, private markets, venture capital and operating businesses, based on Savill’s Next Generation Wealth Hubs Index published on Thursday (Oct 1).

This comes as wealth creation shifts towards innovation in areas such as artificial intelligence, advanced manufacturing and life sciences supporting a new wave of entrepreneurs and private capital, as China’s economy matures.

Sulian Tan-Wijaya, executive director, deputy head of private wealth and head of retail at Savills Singapore, said: “The next generation of private wealth is looking at capital more holistically.

“Real estate remains an important part of wealth planning, but decisions are increasingly considered alongside family needs, business interests, succession planning and how different assets fit within a broader portfolio.”

Singapore leads the six Apac cities represented in the global top 30 of Savill’s index, which identifies the locations best placed to attract and retain the next generation of high-net-worth individuals.

Ranking sixth globally, Singapore’s appeal extends to wealth preservation and intergenerational planning given the city-state’s concentration of wealth, strong business networks, and growing importance as a regional hub for technology and private capital.

The next city in the ranking – Hong Kong at seventh place globally – offers many similar incentives to Singapore, with a recently growing proportion of wealthy individuals from mainland China who are drawn to the high quality of life and ease of access.

Other Apac cities in the ranking include Tokyo, Shanghai, Bangkok and Kuala Lumpur.

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Emerging destinations such as Bangkok, Kuala Lumpur and Ho Chi Minh City are gaining prominence as wealth, talent and investment flows diversify across the region, the report stated.

Savills’ report comes as an estimated US$84 trillion is expected to transfer between generations over the next two decades. Younger wealth holders are becoming increasingly global and placing greater emphasis on factors including lifestyle, education, wellness and personal values when deciding where to live, invest and establish businesses.

Kelcie Sellers, associate director at Savills World Research, said: “As wealth moves across borders and generations, capital is likely to become more selective. Scarce, turnkey and highly serviced assets in markets that combine legal stability, lifestyle quality, privacy and long-term liquidity are likely to remain most resilient.

“Residential real estate must now deliver more than capital preservation alone. It must support how wealth holders and their families want to live, work, travel, connect and plan for the future.”