Business / Industries

A million dollars equals a 58 sq m home in Beijing

By Cai Muyuan ( Updated: 2016-03-15 15:47

China's Ultra High Net Worth Individuals are the strongest buyers of properties in Beijing, even though prices keep hiking. Moreover, they are eyeing overseas properties as they are becoming more tempting than ever, Securities Daily reported Tuesday.

Ultra high-net-worth individuals (UHNWI) are defined as having a net worth of at least $30 million minus the properties they live in.

In the past 10 years, individual investment abroad has witnessed significant growth, and property investment contributed largely to it. China's investment abroad grew 1,471 percent from 2005 to 1015, the newspaper reported.

Neil Brooks, director of Asia-Pacific Capital Market, pointed out that the most obvious trend in the past 10 years is the deepening interest in commercial properties from the growing number of wealthy individual investors.

As domestic market growth slows down and more investment approaches are made available, it can be expected that properties in key western markets will continue being the target for Asian individual investors.

According to the Wealth Report 2016 jointly issued by Knight Frank and BOC International, a person can buy a 17 sq m luxury property in Monaco with a million dollars while in Beijing, which ranks 10th on the chart, with the same amount of money you can buy a 58 sq m luxury property.

According to the report, the number of UHNWI on the Chinese mainland will reach 22,773 in 10 years, the second most in the world.

In 2015, Beijing has the most UHNWI among mainland cities, with 2,073. The increase was 320 percent in the past 10 years and in the coming 10 years, the increase is expected to reach 72 percent.

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