London and New York will hold the top two positions as wealth centres for another ten years, with data showing a “relentless shift" to the Asia-Pacific, according to Knight Frank and Citi Private Bank.

London and New York will hold the top two positions as wealth centres for another ten years, while data shows a "relentless shift" to the Asia-Pacific region, according to the 2012 edition of the Knight Frank and Citi Private Bank Wealth Report.

China, Southeast Asia and Japan now have more centa-millionaires (those with over $100 million in assets) than North America or Western Europe, the report says.

Beijing and Shanghai had the most rapid growth in importance, it said.

The report, now in its sixth year, adds to other studies suggesting that the shift in wealth from West to East continues apace, with uncertainties in the eurozone and the “Arab Spring” turmoil of last year only adding to the momentum.

Wealth flows from emerging economies underpinned prices across the leading prime markets in North America and Europe, including Miami, Vancouver and London in 2011 as emerging economies continue to build their huge influence on the real estate markets in established locations, the report said.

However, hard times in Europe have not fully dented the region’s status as a desirable place for high net worth individuals: eight out of 10 top locations in the Prime International Residential Index  price rankings are in the UK, France or Switzerland, it said.

“Wealthy individuals and families, especially those originating from Europe, the Middle East, Africa and Asia, have become extraordinarily global in nature. Many seek the rule of law and stability that make the UK a top choice for investment. With English a popular second language and a relatively weak pound, the global wealthy have confidently focused their interest on London and the wealth preservation it can afford,” said Luigi Pigorini, chief executive, Citi Private Bank Europe, Middle East & Africa.

“Investors seeking a more conservative strategy have gravitated toward high-quality properties in central business districts in cities such as Beijing, London, Munich, New York, Paris and Sydney,” he said.

“Conversely, for those willing to accept more risk, high growth markets, such as Asia and Latin America, may be able to generate more attractive returns relative to the US and Europe. Investors must remain cautious as global economic growth will continue to influence all property markets, and investors should measure their yield and return expectations taking growth into account,” he said.

Andrew Shirley, editor of The Wealth Report, said: “This year’s Wealth Report contains even more evidence that the world’s wealthy are weathering the economic slowdown better than the wider population, and nowhere is this better reflected than in prime property markets. Those markets considered 'safe-haven' locations continue to attract private investors looking for both prime residential and commercial property. Political and economic uncertainty across the world is only helping to exacerbate the trend.”

“But it is not just property where HNW individuals from fast-growing economies are making their mark. The Wealth Report’s Attitudes Survey reveals that they are playing an increasingly important role in the worlds of sport, fine art, wine, and philanthropy,” Shirley said.

Among its details, the report showed that the new generation of wealthy people in the world’s fastest-growing emerging economies value stability, business transparency and education systems as the most important factors in a global city.

Prime property is a key part of portfolios – 2011 saw a global increase in allocation to real estate of 19 per cent; the largest climbers in 2011 popularity for investment were bonds (+65 per cent) and cash (+60 per cent).

According to the report’s Attitudes Survey, lifestyle and investment remain the key drivers for luxury second-home purchases, with 16 per cent of all HNW individuals surveyed already owning a ski chalet, and 40 per cent a beachfront property. The US and UK are the top second-home destinations for the rich.