As many as 527,000 Hong Kong residents have HK$1 million
($128,000) in liquid assets, equating to around 9.8 per cent of the city-state’s
adult population, according to new research from US lender Citi. 

This affluent population has decreased 5.6 per cent on last
year, when it hit a high of 558,000 adults (aged 21 to 79), according to the Citi Consumer Wealth Review, which interviewed
4,066 adults between November 2011 and January 2012.

The main drivers of growth in wealth continued to be
investment, with 41 per cent seeing investments in stocks, gold, foreign
currencies and Reminbi swell their wealth. This was down from 47 per cent in 2010.

Almost half as many made gains through property sales as
2010, as volatility shook the real estate market; only 16 per cent compared
with 2010’s 29 per cent.

The average age of HK$ millionaires was relatively young at
49 per cent, and fairly split between genders, with 43 per cent women.

This was no wonder, as nearly a fifth of HK$ millionaires
are housewives, compared with only a tenth who were business executives and 13
per cent were professionals. Just over a fifth, the largest group, were
retirees.

Well over half of the HK$ millionaires live on Hong Kong
island or Kowloon, and most are big property bulls. Four-fifths own one or more
properties, with real estate making up on average 71 per cent of their net
assets. Less than a quarter was in liquid assets, which is bad news for banks.

But mindful of the sky-high real
estate prices, HK$ millionaires are becoming more pessimistic about property. Only 2 per cent
said they had a strong intention to purchase property this year, compared with
5 per cent last year. Seventy one per cent expect property prices to drop this
year, compared with 19 per cent last year.

HK$ millionaires like to treat
their children. Millionaires on average spent HK$14,200 on their
children each month in which HK$4,100 were for extracurricular activities. Millionaires
are “somewhat willing” to give financial support to fulfill their children’s
desire, said the report.