The world’s second highest built asset wealth per person
SINGAPORE – Singapore (US$191,500 per person) has lost its top position to Qatar (US$198,000 per person) in 2015 built asset wealth per person ranking. Singapore held the top position previously in 2013. China has become the world’s richest country measured by the value of its built environment according to the latest Global Built Asset Wealth Index published by Arcadis, the leading Design & Consultancy firm for natural and built assets.
The index, which was compiled for Arcadis by the Centre for Economics and Business Research (Cebr), calculates the value of all the buildings and infrastructure that contribute to economic productivity in 32 countries, which collectively make up 87% of global GDP.
Asian countries occupied three out of top five positions in the built asset wealth per person ranking. Singapore has the highest built asset wealth per person in Asia followed by Hong Kong (US$160,000) and Japan (US$143,500).
Chris Graham, Head of Business Advisory, Singapore at Arcadis comments: “Despite losing its top position in the built asset wealth per person ranking, Singapore’s sustained performance of this small, densely populated island state reflects a continued and focused investment in infrastructure. It has retained a high end manufacturing industry and continues to be a desirable environment to live, work and do business.”
Total built asset wealth now stands at an estimated US$218 trillion, which is the equivalent to US$30,700 per person alive today. China now has a built asset wealth of US$47.6trillion, overtaking the USA which comes in second place with a wealth of US$36.8trillion. Since 2000 China has invested US$33 trillion in its built assets, a total that exceeds all other economies combined. The growth is evidence of China’s unprecedented level of investment in its infrastructure – 9% of GDP – which dwarfs global competitors like the USA, which currently invests just 2%.
Adam Sutton, Asia Leader of Business Advisory at Arcadis explains: “The health and wealth of a nation can be measured in many different ways and while factors such as GDP or employment have great value, a prosperous society is underpinned by a well-developed built environment that meets the needs of its people and economy.”
Sutton continues: “China’s ranking this year marks a profound change in the global league table of the world’s wealthiest built asset nations. We believe that the China led Asian Infrastructure Investment Bank, which aims to beef up infrastructure development in Asia, will help China to continue to increase the lead over the US in the years to come.”
Unlike most mature markets, such as those of North America, Europe and Australia, a significant amount of infrastructure projects in China are driven by central government planning. Lands are released for development at ‘public’ auctions with strict stipulations and parameters around the amount of each asset class to be built. It is critically important for the government to ensure the development of world class infrastructure to support its fast growing economy and the unprecedented levels of urbanization in China.”
The Asia Pacific nations on the Arcadis Global Built Asset Wealth Index are:
Asia Pacific Ranking | World Ranking | Country | 2015 (US$) | Ranking change from 2013 |
1 | 1 | China | 47.6tn | +1 |
2 | 3 | Japan | 18.2tn | = |
3 | 4 | India | 15.2tn | = |
4 | 9 | South Korea | 6.1tn | -1 |
5 | 14 | Indonesia | 4.7tn | +8 |
6 | 16 | Australia | 3.27tn | -2 |
7 | 18 | Thailand | 2.99tn | +1 |
8 | 22 | Malaysia | 1.68tn | +3 |
9 | 27 | Hong Kong | 1.16tn | -1 |
10 | 29 | Singapore | 1.06tn | +3 |
The shifting wealth to emerging economies
The Global Built Asset Wealth Index shows a dramatic shift of wealth to emerging economies, with the traditional economic superpowers – the G7 – showing a net decline in the value of their built assets since 2012. Structural assets depreciate at a rate of around 5% per year, meaning that this level of investment is the minimum required to maintain the status quo, a figure that equates to US$1.4 trillion in the US.
South East Asian economies including Indonesia, Thailand and the Philippines were amongst the biggest gainers.
Overall Arcadis Built Asset Wealth Ranking and Forecast
Ranking | Country | 2015 built asset wealth (US$tn) | 2025 Forecast | 2025 ranking | Change: 2015-2025 |
1 | China | 47.58 | 97.04 | 1 | 0 |
2 | USA | 36.82 | 45.25 | 2 | 0 |
3 | Japan | 18.24 | 23.17 | 4 | -1 |
4 | India | 15.24 | 16.40 | 3 | +1 |
5 | Germany | 10.21 | 10.43 | 5 | 0 |
6 | Russia | 8.44 | 5.76 | 13 | -7 |
7 | Italy | 7.91 | 8.14 | 8 | +1 |
8 | France | 7.91 | 7.71 | 7 | -1 |
9 | South Korea | 6.12 | 7.63 | 9 | 0 |
10 | Brazil | 5.95 | 7.37 | 11 | -1 |
11 | Mexico | 5.89 | 6.80 | 10 | +1 |
12 | Spain | 5.77 | 6.80 | 16 | -4 |
13 | UK | 4.82 | 5.76 | 14 | -1 |
14 | Indonesia | 4.70 | 5.69 | 6 | +8 |
15 | Canada | 4.56 | 5.66 | 15 | 0 |
16 | Australia | 3.27 | 5.39 | 18 | -2 |
17 | Saudi Arabia | 3.15 | 4.50 | 12 | +5 |
18 | Thailand | 2.99 | 4.30 | 17 | +1 |
19 | Turkey | 2.55 | 2.82 | 23 | -4 |
20 | Netherlands | 2.15 | 2.55 | 24 | -4 |
21 | Poland | 1.94 | 2.44 | 22 | -1 |
22 | Malaysia | 1.68 | 2.43 | 19 | +3 |
23 | South Africa | 1.50 | 2.43 | 25 | -2 |
24 | Belgium | 1.40 | 2.01 | 27 | -3 |
25 | UAE | 1.33 | 2.30 | 21 | +4 |
26 | Egypt | 1.20 | 1.90 | 29 | -3 |
27 | Hong Kong | 1.16 | 1.48 | 28 | -1 |
28 | Philippines | 1.14 | 1.47 | 20 | +8 |
29 | Singapore | 1.06 | 1.16 | 26 | +3 |
30 | Chile | 0.86 | 1.15 | 30 | 0 |
31 | Qatar | 0.45 | 1.00 | 31 | 0 |
32 | Ghana | 0.20 | 0.38 | 32 | 0 |
The full report can be downloaded here: 2015 Global Built Asset Wealth Index.
Article by Arcadis.