Explosion of riches(2)

Reuters added that the shortage is most acute in Hong Kong and Singapore where space, whether on land or on water, is scarce and the number of multi-millionaires is among the highest in the world.

"Singapore's ONE15 Marina Club, where monthly berth rentals cost S$10,000 ($7,950) for a 40-meter boat, is currently at full capacity. Hong Kong's Discovery Bay Marina Club, where berth rentals start at S$6,000 for a similar sized yacht, is also full," Reuters added.

Last year the fine art auction house Christie's launched an advisory service, aimed primarily at China's superrich, who want to buy vineyards in the world's leading wine-producing nations.

Martin Roll, one of the region's leading brand specialists, believes luxury in Asia means "you have arrived."

"It's a sign of status," he says. "It is very different to the Western world where a luxury-brand bag or wristwatch is an expression of your inner self. In other words, you don't buy a Louis Vuitton bag or Dunhill watch to impress people - you buy a luxury brand because you like it."

Roll says the Asia-Pacific region will continue to drive the world's luxury market for the "foreseeable future".

In Singapore, for example, the sale of luxury goods is expected to reach S$2.7 billion this year, up by 6.6 percent from last year, according to research data firm Euromonitor International.

"From one-of-a-kind watches made with parts of a Formula One car, to one where all movements of the watch are made from solid gold - retailers say price is usually not an issue for their clients," Channel News Asia says in a report.

"One of the most expensive timepieces at E'Collezione on Singapore's Orchard Road is a Julien Coudray watch that is retailing for S$230,000. But not only can customers buy the watches here, they can also shop for a new car to go with that watch as well," the report says.

The distributor of Lambor-ghini in Singapore started bringing in luxury watches by deLaCour more than a year ago to close a gap in the market.

"Eurosports Global has limited deLaCour timepieces that retail at S$1 million, but it says the price range for customized pieces really depends on the customer's request," CNA says.

The Economist Intelligence Unit says that Asia will account for more than half of the world's luxury goods market within a decade.

"Fears of a slowdown have been heightened recently by China's crackdown on displays of wealth, and Japan's shifting exchange rate," Jon Copestake, chief retail and consumer goods analyst at the EIU, tells London's Daily Telegraph newspaper.

"But even in this climate, some luxury firms have continued to deliver strong sales," he says. "With Europe stagnating and North America subdued, the focus is firmly on Asia's potential."

The EIU says India will become a "key battleground for luxury brands as the retail market opens up to foreign investment".

A wealthy elite has also emerged in Indonesia on the back of the global commodities boom, while Malaysia and Thailand are becoming shopping destinations with the former benefiting from low import duties on luxury goods, the EIU says.

Juan Manuel Mendoza, head of Asian equities at Credit Suisse Asset Management, says in a report to clients that the Southeast Asia luxury market is growing at a similar pace to the Chinese market.

"It is a quarter of the size of the Chinese market but it is making a significant contribution to global luxury goods spending," he says.

Mendoza adds that luxury malls in cities like Bangkok are rising and growing at 25 percent annually with several new luxury developments expected to come up within the next three years.

"In fact, Thailand is planning to allow Chinese tourists to enter the popular holiday destination without tourist visas and, at the same time, will significantly cut import duties for luxury brands, helping it compete with places like Hong Kong and Macao in the future," Mendoza concludes.