A new report published by New World Wealth indicates which cities the world’s wealthiest people are moving to.
Three cities in Australia were among the top eight in the world that experienced the biggest inflows of millionaires.
‘Millionaires’ otherwise known as “high net worth individuals” or “HNWIs” refer to individuals with net assets of US$1 million or more excluding their primary residences.
Cities ranked by millionaire inflows 2015
|Cities||Inflow of millionaires in 2015||Millionaires, 2015|
|Sydney||4 000||94 400|
|Melbourne||3 000||66 800|
|Tel Aviv||2 000||29 000|
|Dubai||2 000||42 000|
|San Francisco||2 000||129 000|
|Vancouver||2 000||25 300|
|Seattle||1 000||19 600|
|Perth||1 000||28 000|
NWW pointed out that Sydney, Melbourne and Perth all benefitted from millionaire
inflows from China, Europe, the UK, USA and South Africa.
Other Australian areas such as the Gold Coast, Brisbane, Noosa and the Sunshine Coast also experienced inflows.
Tel Aviv had large inflows from Europe, especially France. Other Israeli cities such as Herzliya, Jerusalem and Netanya also experienced inflows.
Australia overall, saw an influx of 8,000 millionaires in 2015, followed by the US with 7,000 millionaires adding to its total millionaire base of 4.18 million, while Canada saw 5,000 new millionaires enter its borders.
According to NWW, Paris and Rome shed 6% and 7% of their millionaires in 2015. For Parisians, most moved to the UK, USA, Canada, Australia and Israel. And for Rome’s wealthy, most moved to the UK and USA.
Cities ranked by millionaire outflows 2015
|Cities||Outflow of millionaires in 2015||Millionaires, 2015|
|Paris||7 000||126 000|
|Rome||5 000||73 100|
|Chicago||3 000||134 000|
Reasons for leaving:
- Paris: Rising religious tensions,
lack of opportunities.
- Rome: Economic slump, lack of opportunities.
- Chicago: Rising racial tensions, rising crime levels.
- Athens: Economic slump, migration crisis with Syria/Turkey
Why do millionaires leaving a country matter?
- Bad sign – millionaires are often the first people to leave. They have the means to leave, unlike middle class citizens.
- Money outflow – when millionaires leave a country, they take large amounts of money with them which impacts negatively on the local currency, local stock market and local property market.
- Lost jobs – millionaires employ large numbers of people. Around 30% to 40% of millionaires are business owners.
- Lost revenue and tax – millionaires spend a lot of money on local goods and services and pay a large amount of income tax.