Ultra-rich Filipinos seen doubling in 5 years

MANILA, Philippines — The number of ultra-high net worth individuals or those with net assets of $50 million or more in the Philippines is expected to nearly double over the next five years, the second fastest projected growth in the world behind China.

Results of The Wealth Report of global property consultancy firm Knight Frank showed the number of ultra-high net worth individuals in the Philippines is seen expanding by 84 percent from 310 in 2017 to 570 in 2022.

This means that the Philippines will see 260 new ultra-wealthy individuals over the next five years, most of whom are homegrown Filipinos, the report said.

The growth is expected to be the second highest globally behind China, in which ultra-high net worth individuals are seen growing by 104 percent until 2022.

“The growth is driven mainly by a bullish real estate industry, strong macroeconomic fundamentals and will be further fueled by the influx of Chinese investments into the Philippines through the Belt & Road Initiative,” Knight Frank chairman and CEO Rick Santos said.

“The Philippine economy has a number of strengths. It’s all down to economic growth and improvements in infrastructure and FDI (foreign direct investments). All are supporting factors to wealth creation,” Nicholas Holt, Knight Frank head of research in Asia Pacific, added.

The Wealth Report identified the US as the preferred overseas destination for new homes by Filipino high-net worth individuals, followed by Canada, Singapore, Australia and Hong Kong.

The US is home to four of the five top cities globally that matter to the high net worth community, according to the report’s City Wealth Index.

Meanwhile, the report showed sectors that are becoming of more interest to the ultra-high net worth Filipinos are retail, offices, logistics/warehousing, infrastructure and healthcare.

“High-net worth Filipinos keep their wealth in the traditional asset classes of property, cash and equities, but more and more are now looking towards investments of passion, such as art, wine, jewelry, watches and luxury cars,” Knight Frank Group executive board member Lord Andrew Hay said.

“High-net worth Filipino families are well-traveled and increasingly sending their children for college education in some of the top schools overseas. This might be on the East or West coast of the United States, Canada, the United Kingdom, Europe or Australia and has seen a marked rise in investment in overseas homes,” he added.

The Wealth Report incorporates the results of a survey, which offers an annual snapshot on the issues influencing wealthy individuals’ investment and lifestyle decisions.

This year’s survey results are based on responses from 541 of the world’s leading private bankers and wealth advisors, representing approximately 50,000 clients with a combined wealth of around $3 trillion.