The wealth of Asia-Pacific high net worth individuals and their population rose sharply last year, while their holdings of property assets rose markedly, according to Merrill Lynch in a report on the region.

The HNW individual population rose by 25.8 per cent and the number of such people expanded by 20.9 per cent in 2009 compared with the previous year. At the end of last year, there were a total of 3.0 million Asian high net worth individuals, collectively controlling $9.7 trillion.

The report, which uses the same methodology as the Merrill Lynch/Capgemini World Wealth Report issued earlier in the summer, goes into more detail about the Asian market.

Among its findings was that equities accounted for 27 per cent of all Asia-Pacific HNW individuals’ assets by the end of 2009, up from 23 per cent in 2008, as the region’s booming markets attracted investors and boosted asset values. The equity allocation, however, was still below the average of 29 per cent among HNW individuals globally.

The share of assets dedicated to real estate rivalled equities - at 26 per cent, up from 22 per cent and considerably above the 18 per cent global average - as the region’s property boom encouraged buying and inflated prices. Cash-based holdings dropped to 22 per cent from 29 per cent, but that level was still above the 17 per cent global average.

Despite the general upward exposure to stocks, in Japan, Taiwan and Indonesia, however, HNW individuals maintained relatively low equity allocations of 19 per cent or 20 per cent. These markets have well-established bond markets, and HNW individuals have traditionally favoured fixed-income and real-estate investments over equities, the report said.

Asia Pacific ultra high net worth individuals were slightly more heavily invested in equities (30 per cent) than the region’s HNW individuals overall, it said.

As far as wealth population trends are concerned, the report said that Hong Kong and India, which experienced the world’s largest declines in HNW individual population and wealth in 2008, experienced the strongest resurgence in 2009. The population of such people grew 104.4 per cent in Hong Kong, almost reaching pre-crisis levels, and 50.9 per cent in India. Such wealth in Hong Kong and India jumped 108.9 per cent and 53.8 per cent respectively amid strong growth in both market and macroeconomic drivers of wealth.

The Asia Pacific HNW individual population and wealth remain highly concentrated. Japan, China and Australia together accounted for 76.1 per cent of the Asia Pacific’s HNW individual population in 2009, down only slightly from 77.4 per cent in 2008. Japan and China commanded around 65 per cent of total Asia Pacific HNW individual wealth.