If there is one point that the latest highly respected Knight Frank/Citibank Wealth Report has confirmed it is that Ultra High Net Worth Individuals favour only two main channels for their money '“ their own businesses and property.
Pointing this out, Tony Clarke, MD of Rawson Properties, said that the reports 'Attitudes Survey', based on questions put to some 5 000 UHNWIs and their financial advisors worldwide show that property comprises just on 35% of their investment portfolios.
The report, said Clarke, gives ample evidence of how up to date and well informed on property matters this type of investor tends to be.
'Their appreciation of where the real opportunities lie resulted in their being able on average to increase their wealth by 22% in the downturn of 2010'
So '“ where are these 'real' opportunities?
Clarke said that the survey shows that UHNWIs are moving into Chinese, Indian, Indonesian, Vietnamese and Malaysian property.
'The report makes it clear that investing in emerging markets is a high-risk activity but it is now considered a viable alternative to Europe and the USA where economic growth is minimal and where debt problems continue to create huge uncertainty'
Also now favoured by some HNWIs, said Clarke, is development land around Lusaka, Zambia, the 'very depressed' secondary (i.e. not prime) UK property (especially that now selling at 40 to 50% plus discounts on the fringes of Englands major cities), commercial land in Poland (especially in Warsaw) and luxury new homes in prime European cities '“ many now attracting Asia Pacific buyers.
How does this have relevance to the South African property market?
Clarke said that the lesson to be learned from the Knight Frank report is that even in the worst downturns there will be property pockets that perform well and can help investors to get good returns.
'This,' he said, 'is an especially important message right now because Rawsons ability to identify such good investments is being strengthened across the board and especially in the commercial field where we have established our new commercial property sales and leasing franchising division under the control of Jason Lee.
'Those looking for good value property right now, i.e. at this low point in the economic cycle, should be in touch with Lee, because the opportunities will be there,' said Clarke.
For further information contact Tony Clarke on 021 658 7100 or email tony@rawsonproperties.com.
