City Wellbeing Index- Singapore emerges as top Asian City

Singapore emerges as top Asian city in inaugural City Wellbeing Index

Knight Frank has released the results of its inaugural City Wellbeing Index – part of The Wealth Report 2020 – that identifies cities that are increasingly focused on the quality of life they can offer in order to attract both talent and corporates.

The City Wellbeing Index analysis of 40 leading urban centres took into consideration a host of factors including personal security, lifestyle, healthcare, the level of crime, work-life balance and access to green spaces. While European cities expectedly lead the way, Singapore was the only Asian city ranked amongst the world’s top 10.

Linda Chern, Head of Residential Prime Sales and Leasing, Knight Frank Singapore, says, “Ultra High Net Worth Individuals (UHNWIs) have longed viewed Singapore favourably due to its safe environment and stable economy.  The city state is highly regarded for its quality infrastructure, digital & personal security, education standards and transparent legal systems. Additionally, the fusion of the diverse cultures in unique clusters further offer an enriching lifestyle in Singapore.

“Singapore also appeals to UHNWIs given its many green features. Besides weaving urban parks throughout the metropolis and conserving tracts of nature reserves, the city state has also established world-class gardens for its residents. Hence, luxury residential projects in Singapore offer the ultra-wealthy a unique opportunity to own homes that offer comforting greenery and exclusivity, whilst enjoying the amenities and convenience of a modern city.”

Professor Jason Pomeroy, founding principal of Singapore-based sustainable design firm Pomeroy Studio, told the Wealth Report 2020: “There is a wealth of literature that shows a correlation between urban greenery and health and wellbeing…all leading to greater opportunities to live longer and more meaningful lives. This idea is now informing legislation and planning, for example Singapore’s Landscaping for Urban Spaces and High Rises (LUSH) programme – thus demonstrating how the concept of wellbeing for man and nature can be a driver of real estate value.”

Knight Frank City Wellbeing Index

Knight Frank Research, World Cities Forum, Current Results, Numbeo, TomTom, UN, UBS Global Wealth Management, Health Category of the Legatum Prosperity Index, Economist Intelligence Unit

UHNW Attitudes to Wellness

According to the Attitudes Survey, seven out of ten wealth advisors in Asia Pacific told Knight Frank that wellness is an important consideration for their clients. The survey also reveals that 80% of UHNWIs are spending more time and money on their personal wellness. When choosing a new home, UHNWIs from Asia Pacific are also increasingly concerned with how the design of a property contributes to their physical and mental wellbeing.

Chern further shares, “The consideration of wellness usually involves the curation of an environment that caters to the wellbeing of individuals of different age groups, as the UHNWI plans ahead, keeping in mind their family’s wellbeing across different life stages. Homes that are designed to optimise health and wellbeing have been well received and their prices shown to be resilient against external shocks.”

Research from the Global Wellness Institute* has found that price premiums for real estate developments that incorporate wellness elements average 10% to 25% but can range widely from 5% to 55%.

Asia’s population of ultra-high-net-worth individuals (UHNWIs) – those with a net worth of US$30 million or more – expanding at a rate that outpaces most other world regions last year, according to Knight Frank’s Wealth Report 2020.

In 2019, Asia topped a league table of the world’s fastest growth of UHNWIs, dominating 7 out of the top ten places with an estimated increase of 11,800 UHNWIs – up 13% – bringing the total population in the region to 103,000 individuals. North America, where the largest proportion of world’s wealthiest population reside, registered a 6% increase in UHNWIs last year, while Europe saw its position lag at 4%.

Source: Wealth Report 2020

Despite its smaller population and higher base, Singapore witnessed one of the ten highest growth rates of UHNWIs in the world, from 2018 to 2019. The local growth of UHNWIs came as more UHNWIs were drawn to the Singapore’s liveability, as they set up base in the country for business.

Additionally, UHNWIs are attracted to Singapore’s potential for investment, as well as its lifestyle. According to Knight Frank’s City Wealth Index, Singapore ranked 5^th globally when considering lifestyle factors and 10^th when it came to investments. Notwithstanding, the vibrant start-up scene locally has also given rise to a new wave of UHNWIs.

Looking ahead, the growth rate of UHNWIs in South-East Asia is projected to be one of the highest in the world. Out of the top twelve fastest growing UHNWI markets, four come from South-East Asia, with expected growth rates of around 30% or more. One reason for the strong, anticipated growth is the rise of disruptive business models created through technology, and abundant capital. As a gateway city and regional hub, Singapore is primed to benefit from neighbouring growth of UHNWIs as well.

Source: Wealth Report 2020

Ultra-high-net-worth individuals investment strategies nurtures budding start-ups or social enterprises. The Wealth Report 2020 says ultra-high-net-worth individuals investment strategies may offset the effects of the global economic slowdown.