Japan's super-rich population to shrink in next 5 years

Knight Frank's report said Japan will remain home to the second-largest number of ultra-high-net-worth individuals (those with a net worth of at least $30 million) in Asia, behind only mainland China.

Japan's ultra-rich population is forecast to shrink by 1.8% over the next five years, making it the only member of the Group of Seven (G7) leading industrialized nations to record a decline between 2022 and 2027.

The information was given in a recent report by British real estate consultancy Knight Frank.

However, the report also said that Japan will still have the second largest number of ultra-rich individuals (those with a net worth of at least $30 million) in Asia, behind only mainland China.

The number of ultra-rich people in Japan, the world's third-largest economy, is estimated to reach 21,859 individuals in 2027, down from 22,259 in 2022.

A Knight Frank manager said Japan's declining population was one of the main factors leading to the expected decline.

According to Japan's National Institute of Population and Social Security Research, the country's population is expected to fall from 125 million in 2022 to 122 million in 2027, a decline of 2.3%.

Globally, the number of ultra-rich individuals fell 3.8% in 2022 compared to a year earlier.

Many of them have seen their fortunes plummet amid a series of shocks to the global economy, such as the Russia-Ukraine conflict and rising inflation that has led to sharp interest rate hikes in many countries.

However, the report predicts that the global ultra-rich group will increase by 28.5% to around 745,000 people by 2027. Knight Frank said the interest rate hike cycle is nearing its peak, and expressed optimism about the global real estate market.

By region, Asia’s ultra-wealthy population is estimated to grow by 39.8% to around 210,000 people between 2022 and 2027.

Mainland China will see a nearly 50% increase to about 132,000 people in 2027, from about 88,000 in 2022.

The US will continue to have the largest number of ultra-rich people in the world, with a projected increase of 24.6% to around 253,000 by 2027.

The report also said most other G7 countries, including the UK, Germany and Canada, also expect the number of super-rich to grow at double-digit rates over the next five years./.

H.Thuy (Vietnam News Agency/Vietnam+)

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