Press Releases Australia's high-net-worth market grows to $4.6 trillion as 120,000 households join the ranks of the wealthy

Australia's wealthy investor market continues to expand

Australia's high-net-worth market added more than 120,000 households and around $360 billion in investable wealth over the past year, despite elevated inflation, higher interest rates and periods of market volatility.

The inaugural Rich Decisions study from Praemium and CoreData found Australia's high-net-worth population grew from 1.21 million to 1.33 million households. The investable wealth held by these households increased 8% to $4.6 trillion.

The result points to a wealth market that has remained resilient through difficult economic conditions. Seventy-one per cent of high-net-worth investors said their investable wealth increased during the year, while only 4% reported a decline.

Growth extends well beyond the ultra-wealthy

Most of the expansion came from investors entering or progressing through the lower and middle tiers of the high-net-worth market, rather than further concentration among Australia's wealthiest households.

The strongest growth was below the ultra-wealthy tier. The $1 million to $2.5 million segment added more than 78,000 households to reach 860,469, while the $2.5 million to $5 million and $5 million to $10 million segments each grew 10.2%. The $10 million to $20 million segment also expanded, up 9.1% to 60,476 households, while the $20 million-plus segment was broadly unchanged at around 8,900.

Andrew Inwood, Founder and CEO of CoreData Research, said the increase in investor numbers was as significant as the growth in wealth. "The headline figure is $4.6 trillion, but the change in the number and mix of investors deserves just as much attention. Australia added more than 120,000 high-net-worth households in one year, with most of that growth occurring below the $20 million level.

"More than 860,000 households now sit in the $1 million to $2.5 million segment alone. This is a large group of investors whose financial needs are beginning to extend beyond accumulation and portfolio returns.

"The high-net-worth population is not a single, uniform market. The emerging affluent are still building their wealth, while the ultra-high-net-worth are prioritising legacy planning and philanthropy. The differences between these segments are becoming more pronounced, and they have real implications for how advisers engage with each segment."

Investors remain positive about the outlook

High-net-worth investors remain constructive about the year ahead despite concerns about inflation, interest rates and the economy.

More than four in five expect investment markets to perform well over the next 12 months. Artificial intelligence, interest-rate cuts and equity markets are among the areas investors see as offering opportunity.

This confidence sits alongside the strong personal wealth results recorded during the past year. It indicates that many wealthy investors remain prepared to pursue opportunities while reassessing how their portfolios and broader financial plans respond to changing conditions.

More investors are seeking advice

More than seven in ten high-net-worth investors worked with a financial adviser or wealth manager during the past 12 months. Adviser use rises with wealth and reaches 85% among ultra-high-net-worth investors.

Praemium’s Chief Commercial Officer Denis Orrock said the growth of the market creates an immediate opportunity for advice firms, particularly as more households move into wealth brackets where financial decisions become more complex.

“Australia's high-net-worth population is expanding rapidly, and investors continue to place a high value on professional advice. The advice gap will continue to widen as demand rises in a market with fewer advisers, more complex financial wealth, and a broader range of client needs across accumulation, retirement, preservation, and succession.

The firms that will capture this growing market, will be those that can combine personalisation with scale, using technology and efficient operating models to serve more clients without compromising the quality of the advice relationship”.