What luxury items ultra wealthy Australians are buying

There are close to 21,000 Aussies who have a net worth of more than $43 million and a new report reveals how they splash their cash.

Australia’s ultra rich – those who are worth over $US30 ($A43 million)— haven’t suffered during the pandemic with 97 per cent increasing their wealth last year and a new report has revealed what they splash their cash on.

A range of luxury items topped the list with the ultra-wealthy spending more money than ever on collectables and passions, as a new trend emerged of wealthy Millennials investing in bespoke Rolls-Royces, according to Knight Frank’s Wealth Report for 2022.

Art sales through major auction houses have seen a 71 per cent growth over the past decade,

with art expected to remain the top investment of passion for Australia’s ultra-wealthy.

Another one of the trends in collectables is the surge in non-fungible tokens (NFTs) or

cryptocurrency art.

Veronika Molnarova, former art co-ordinator for Crown Sydney, said in the past, art had been an exclusive item and only available to a small group of art lovers.

“However, the presence of social media has brought both the artists and art lovers closer and more accessible,” she explained.

“With the emergence of young wealthy buyers, artists now have the opportunity to experiment on a wider spectrum and not limited to a single style or era.”

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Crypto enthusiast, investor and collector Pablo Rodriguez-Fraile, made a hundredfold profit (US$6.6 million) last year from the sale of this work by Beeple (sold for US$69 million). Picture: Christies

There were close to 21,000 ultra high net worth individuals in Australia meaning they are worth more than $US30 million ($A43 million) with the number expected to grow to just over 27,000 by 2026, the report found.

Over the past 10 years, passion investments in cars have seen a 164 per cent growth in value, the report found, but there’s been a change in who has been buying.

Luxury cars are attracting a younger demographic of affluent buyers, according to Rolls

Royce CEO Torsten Muller-Otvos.

The global average of Rolls-Royce’s customers is now aged 43, compared to 57 when he joined the brand in 2010, he said.

But bespoke cars aren’t just for the boys with, female owners increasingly interested in

personalising their car collections too.

“The brand is bespoke – owners can specify from 44,000 colours or even have an exclusive colour to their name, as some female owners have done,” he said.

“A world-first gallery in the Phantom (series), which extends through the fascia of the car, allows an owner to specify their favourite art works.”

Rolls Royce ghost white model. Picture: Supplied

Jewellery is still an obsession for the rich and famous, the report found, with pearls for men another trend gaining strong momentum.

Previously, luxury brands saw a trend towards very fine jewellery, but Paspaley have since noted a shift towards bolder pieces that expand the product category and audience.

The brand’s male customer base is rapidly growing, especially since the launch of Paspaley’s Kimberley Pearl bracelet ranges, it said.

Interest in these products tie in with a trend towards sustainable jewellery which is also gaining momentum among rich listers opting for more natural products.

Paspaley's Kimberley range. Picture: Supplied

Chris Paspaley, director of merchandise at the company, said times have changed and we’re finding many customers are looking for an opportunity to make a statement with a bold jewellery design.

“Our pearl and mother-of-pearl jewellery also naturally align with the sustainability trend. Pearl jewellery for men is another exciting trend we have seen gaining momentum this year, with pearls becoming more prominent in men’s magazines and on male celebrities,” he said.

Over the past 10 years, the strongest growth in value among luxury investments occurred in rare whisky with a whopping 428 per cent increase and wine which saw its value jump by 137 per cent.

Audemars Piguet new code watch. Picture: Supplied

Penfolds Grange wine. Picture: Supplied

George Samios, director at Treasury Wine Estates said recently we have seen record prices paid for older vintages of many Penfolds wines including the highest price ever paid for a full set of Penfolds Grange.

“We have also seen very strong interest for all newly released Penfolds wines, with collectors

snapping up current releases for future investment purposes,” he added.

The growth in younger, self-made ultra high net worth individuals will continue to drive new desires for luxury items, particularly in watches, according to the report.

It found luxury watches are also a favourite and are increasingly becoming emotional purchases that are considered an extension of one’s personality for the ultra-wealthy.