A 2010 study by Capgemini and Merryll Lynch noted that the number of Asian millionaires had surpassed those in the United States. The study recorded a historic shift, estimating the number of Asians with more than USD$1 million available for investments at 30 million. Since then, then ranking has been confirmed and the Chinese component has been maintained. The real estate market has been a growing destination for private investments. Investors are not only purchasing plots and buildings for sale, but also for personal reasons. Many studies have made this observation, most recently Seville and Wealth-x. Since 2008, private purchases greater than USD$10 million have grown 111%, while those on behalf of international investors only grew 43% during the same time period. Private families and businesses comprise the prevalent source of demand; it’s a clear example of Asia’s role in the rankings of the super rich. Their interest in real estate doesn’t waver, and is directed toward the most famous locations for luxury and comfort and a new status of prestige. The favorite destinations are the most traditional: Florida, California, Hawaii and the Hamptons in the US, and the French Riviera, Paris, and London in Europe. Other destinations being added to this list includes: the Caribbean, developing nations, and close in proximity to important universities. Classic destinations like Hong Kong and Singapore remain perennially attractive, especially to the Chinese where their lifestyles are better accommodated. Studies don’t show any indication of slowing down, and the luxury construction industry for ultra-high net worth individuals will not experience setbacks for all of 2014. The economic aspect prevails in the decision-making; in the case of China and Asia, cultural—if not downright anthropological—motivations need to be considered. Dwellings are a symbol of attachment to the earth; a civilization so entrenched that it cannot be contradicted by the passing of one single generation. It’s the number one goal for saving for both the middle class and the wealthy. It’s an investment but also a symbol, a commodity and a goal. Furthermore, it represents the most immediate solution for capital, which, legally or illegally, is leaving the country. Ancestral motivations marry economic drives, while in industrialized economies it has been a prevalent choice for a long time. The popularity of US destinations for Chinese funds appears ironic. Official criticisms from Beijing keep a distance from a social system from which it only appreciates concrete results, although it entrusts that system with the protection of its massive savings. The national pride of a thousand-year culture is not lacking, but specialization is sought in the more prestigious (and expensive) US universities. American individualism is ideologically regarded with suspicion, however, wealthy Chinese citizens aim for this destination when they need to protect their investments in a framework of the “rule of law.”
