Japan's ultra-wealthy population will shrink over the next five years.

A report by Knight Frank predicts that Japan will remain the second-largest source of ultra-high net worth individuals (those with a net worth of at least $30 million) in Asia, second only to mainland China.

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

This information comes from a recent report by the British real estate consulting firm Knight Frank.

However, the report also said that Japan will still have the second largest number of super-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 executive suggested that Japan's declining population is one of the main factors contributing to the projected decline.

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

Globally, the number of ultra-high-net-worth individuals decreased by 3.8% in 2022 compared to the previous year.

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

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

By region, the ultra-wealthy population in Asia is estimated to grow by 39.8% to approximately 210,000 people between 2022 and 2027.

Mainland China is projected to see an increase of nearly 50% to around 132,000 people by 2027, up from approximately 88,000 in 2022.

The US will continue to have the largest number of ultra-high-net-worth individuals in the world, with an expected increase of 24.6% to approximately 253,000 by 2027.

The report also stated that most other G7 countries, including the United Kingdom, Germany, and Canada, also expect the number of ultra-wealthy individuals to grow at double-digit rates over the next five years.

H. Thuy (VNA/Vietnam+)

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