Australia in Global Top 10 for Ultra-Wealthy as Property Investment Grows
3 min
Australia has cemented its place among the world’s wealthiest nations, ranking ninth globally for individuals with more than US$10 million in assets, according to Knight Frank’s newly released The Wealth Report 2025.
The report found that 1.8% of the global US$10m+ population resides in Australia, with 42,789 high-net-worth individuals (HNWIs). This places Australia ahead of Hong Kong SAR (42,715 HNWIs), Italy (41,080), South Korea (39,210), and Taiwan (28,391). The United States leads the rankings, accounting for nearly 39% of the world’s ultra-wealthy.
Knight Frank Chief Economist Ben Burston noted that while Australia faced economic headwinds in 2024 due to higher interest rates, global wealth creation remained strong.
“While several major economies, including Australia, saw sluggish growth in 2024 as higher interest rates took a toll on household incomes, robust growth in the United States supported the global economy and underpinned ongoing wealth creation,” Burston said.
Future Growth: Australia’s Wealthy Set to Expand Further
The report predicts continued growth in Australia’s ultra-wealthy population, with Australasia’s US$10m+ segment expected to rise by 5.3% by 2028. The number of individuals worth US$100 million or more in the region is also projected to grow by 4.8%, from 1,918 in 2024 to 2,010 by 2028.
Globally, the number of HNWIs increased by 4.4% in 2024, reaching 2.34 million. The trend is expected to continue, with a projected rise of 6.9% by 2028.
Real Estate Investment a Key Priority for the Wealthy
Property remains a crucial asset class for the world’s wealthiest, with a survey of 150 family offices revealing a strong appetite for real estate investment.
In Australia, 31% of family offices surveyed plan to increase their real estate holdings over the next 18 months, compared to 44% globally. The top three real estate sectors of interest for Australian investors are:
- Industrial properties (42%)
- Data centres (21%)
- Infrastructure (18%)
This contrasts with global preferences, where the leading investment sectors are living spaces (14%), industrial/logistics (13%), and luxury residential (12%).
Knight Frank CEO James Patterson highlighted the ongoing demand for real estate among ultra-wealthy investors, despite recent downturns in commercial property markets.
“More than 30 per cent of respondents expect to increase their exposure to real estate over the next 18 months,” Patterson said. “It’s evident investors are increasingly conscious that they can now acquire assets at an attractive entry point off the back of the downturn and with strong prospects of cyclical recovery in the medium term.”
Luxury Real Estate: A Top Choice for the Next Generation
The report also explored investment trends among younger high-net-worth individuals. Knight Frank’s Next Generation Survey, a global study of 1,788 wealthy individuals aged 18 to 35, found that real estate topped the list of luxury assets they aspire to own.
John McGrath, CEO of McGrath Estate Agents, Knight Frank’s Australian partner, noted that younger generations are drawn to real estate for both lifestyle and investment reasons.
“The next generation desires luxury real estate from a lifestyle point of view, but they can also see the strength of this asset class as an investment with continuing price growth around the world delivering ongoing capital gains,” McGrath said.
He added that Australia’s undersupply of luxury properties, combined with high demand, will continue to drive price appreciation in the sector.
“Australia is a particularly desirable market for luxury real estate due to its plentiful lifestyle locations, as well as being on the doorstep of all the global powerhouse nations within the Asian region.”
Wealth and Real Estate: A Lasting Connection
The findings reinforce the long-standing link between wealth accumulation and real estate investment. Family offices globally continue to allocate significant portions of their portfolios to property, seeing it as a hedge against inflation and a means of long-term wealth preservation.
As Australia’s ultra-wealthy population grows, so too does the demand for strategic real estate investment, with industrial, data centres, and infrastructure emerging as the preferred sectors.
With global wealth set to rise further, the Australian property market remains a key destination for high-net-worth individuals looking to expand their portfolios and secure long-term returns.
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Buyer demand, seller confidence and the First Home Guarantee Scheme are setting up a frantic spring, with activity likely to run through Christmas.
2 min
The spring property market is shaping up as the most active in recent memory, according to property experts Two Red Shoes.
Mortgage brokers Rebecca Jarrett-Dalton and Brett Sutton point to a potent mix of pent-up buyer demand, robust seller confidence and the First Home Guarantee Scheme as catalysts for a sustained run.
“We’re seeing an unprecedented level of activity, with high auction numbers already a clear indicator of the market’s trajectory,” said Sutton. “Last week, Sydney saw its second-highest number of auctions for the year. This kind of volume, even before the new First Home Guarantee Scheme (FHGS) changes take effect, signals a powerful market run.”
Rebecca Jarrett-Dalton added a note of caution. “While inquiries are at an all-time high, the big question is whether we will have enough stock to meet this demand. The market is incredibly hot, and this could lead to a highly competitive environment for buyers, with many homes selling for hundreds of thousands above their reserve.”
“With listings not keeping pace with buyer demand, buyers are needing to compromise faster and bid harder.”
Two Red Shoes identifies several spring trends. The First Home Guarantee Scheme is expected to unlock a wave of first-time buyers by enabling eligible purchasers to enter with deposits as low as 5 per cent. The firm notes this supports entry and reduces rent leakage, but it is a demand-side fix that risks pushing prices higher around the relevant caps.
Buyer behaviour is shifting toward flexibility. With competition intense, purchasers are prioritising what they can afford over ideal suburb or land size. Two Red Shoes expects the common first-home target price to rise to between $1 and $1.2 million over the next six months.
Affordable corridors are drawing attention. The team highlights Hawkesbury, Claremont Meadows and growth areas such as Austral, with Glenbrook in the Lower Blue Mountains posting standout results. Preliminary Sydney auction clearance rates are holding above 70 per cent despite increased listings, underscoring the depth of demand.
The heat is not without friction. Reports of gazumping have risen, including instances where contract statements were withheld while agents continued to receive offers, reflecting the pressure on buyers in fast-moving campaigns.
Rates are steady, yet some banks are quietly trimming variable and fixed products. Many borrowers are maintaining higher repayments to accelerate principal reduction. “We’re also seeing a strong trend in rent-vesting, where owner-occupiers are investing in a property with the eventual goal of moving into it,” said Jarrett-Dalton.
“This is a smart strategy for safeguarding one’s future in this competitive market, where all signs point to an exceptionally busy and action-packed season.”
Two Red Shoes expects momentum to carry through the holiday period and into the new year, with competition remaining elevated while stock lags demand.
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