Boom in wealthy Aussies

THE number of Australians classed as ultra-wealthy leapt by 10 per cent last year, with the surging luxury property market and rebounding share market driving the rise.

The country’s status as a safe haven during the pandemic, which drew wealthy expats home, also helped Australia add to its population of ultra-wealthy people at 4½ times the rate of the rest of the world in 2020.

And despite the worst economic downturn in Australia since the Great Depression, there are now an estimated 3124 Australians with an accumulated net wealth of at least $US30m ($37.88m), according to a global report compiled by real estate agents Knight Frank.

The report shows the pandemic appears to have only briefly interrupted the rise of a local class of wealthy business owners and investors.

Over the past five years the ranks of the ultra-wealthy have grown by 56.6 per cent, beating global trends, where the economic crisis has cut deeper.

The firm’s head of residential research Australia, Michelle Ciesielski, said Sydney had the highest share of both ultra-high-net-worth people – with about one-third – and about one-quarter of high-networth people, classed as those with net wealth of $US1m.

Sydney was followed by Melbourne, Perth then Brisbane.

Wealth is concentrated in the cities even as some wealthy people have shifted to coastal areas such as Victoria’s Mornington Peninsula to escape the worst of the pandemic.

“Our four major capital cities of Australia comprise 74 per cent of the ultra-high-networth population and 66 per cent of the high-net-worth population,” Ms Ciesielski said.

She said the ultra-wealthy population continued to grow in 2020, despite the pandemic plunging Australia into a recession.