Yachts, isolation appeal to super-rich
New Zealand can expect to see a 70 per cent rise in ultra-wealthy individuals over the next decade, a new report suggests.
International property consultancy Knight Frank said New Zealand and Australia’s healthy economies and attractive lifestyles were proving attractive among the super-rich.
In addition, New Zealand was listed among the most popular second home locations for UHNWIS (ultra high-net-worth individuals).
‘‘The ongoing migration of wealthy people to Australia and New Zealand is helping to underpin wealth populations,’’ said Andrew Amoils, head of research at New World Wealth, which specialises in researching the rich.
Robust real estate returns, resilient stockmarkets and some recovery in commodity prices were additional drawcards.
‘‘In the future, this region will have the attraction of good economic fundamentals and ‘safe haven’ status,’’ Amoils said.
Layne Harwood, country head of Knight Frank New Zealand, said investment by the ultra-rich in New Zealand had always been reasonably strong but interest levels had substantially increased in the past two years.
‘‘High-profile investors like Peter Thiel have been very supportive of New Zealand as an investment and lifestyle destination.’’
They were not necessarily buying commercial property but they liked rural, lifestyle and working stations – particularly near Queenstown. Other investments tended to be into business and Auckland residential property.
Auckland had 880 ‘‘multimillionaires’’ with a net worth of more than $10 million each; and 310 ultra-wealthy individuals worth more than $30m, a figure that was forecast to rise to 527 by 2026. Auckland was also fifth on the PIRI 100 index, which tracks the global price growth of luxury homes.
Harwood said UHNWIS liked New Zealand’s isolation, stable government and above average long-term economic growth.
Super-rich yachting fans rated New Zealand for its yachting expertise and as a travel destination, and Hollywood’s interest had been piqued by the New Zealand-based work of film directors Sir Peter Jackson and James Cameron.
The report also looked at wider influences. It suggested Britain’s decision to leave the European Union would not result in an exodus of wealthy Britons. Instead, it would likely strengthen the ties between Britain and its traditional allies including New Zealand.