If you thought wealthy people in Taiwan own the majority of properties, you may be close to being accurate. The super-rich in Taiwan ranked second worldwide in terms of the number of properties they own.
Real estate research firm Knight Frank (瑞普萊坊) released its 2019 “Wealth Report” on Tuesday, in which the company indicated that Taiwanese ultra-high-net-worth individuals — those with assets worth more than NT$1 billion (US$31.8 million) — own an average of 5.4 luxury homes. That was enough for second place behind Saudi Arabia’s wealthy who own an average of 6.4 homes.
There are currently 1781 people in Taiwan who are considered ultra-high net worth, an increase of 4% from the previous year. The report noted that there are 198,342 ultra-high-net-worth individuals in the world, and Taiwan has the 19th most. And 85% of those super-rich Taiwanese individuals reside in Taipei. Of those ultra-wealthy Taiwanese, only 38% reside in their luxury domestic homes, with the rest owning the homes as investments.
According to the report, only 22% of Taiwan’s wealthy families are willing to invest in domestic real estate, down from 38% in 2018. Luxury real estate, particularly in Taipei, has not seen a high return on investment since 2013, with prices falling more than 23% in that time, according to Apple Daily.
The Wealth Report indicated that the luxury housing market has stabilized over the last four years, with prices rebounding by 1.5% last year. It predicts that luxury home prices in Taipei will increase about 3% this year.