The pandemic has fueled wealthy property owners’ desire to get a second home. In the Philippines, the market for second luxury homes has seen a rise in demand due to the pandemic. In fact, many luxury condo owners from central business districts like Makati, BGC, and Ortigas have already bought second homes in nearby areas like Greenhills, San Juan, and New Manila.
There are other reasons responsible for this trend. For one, those who have been accustomed to going on yearly vacations felt frustrated about not being able to leave their home because of the deadly virus. So as soon as home isolation restrictions were relaxed, people who had the means to own another residence settled in vacation spots just outside the city.
It also appears that the rich are buying this type of property for investment reasons. Realizing that the pandemic may give rise to a whole new way of life, wealthy individuals choose homes located at areas with values that are expected to soar in the near future.
The current times are creating home-buying opportunities for some, such as those who had saved up long before the pandemic caused wide-scale unemployment and business shutdowns.
A study from OJO Labs, a technology company in the United States, found that 56.5% of buyers are expediting their purchasing timeline to take advantage of low interest rates in the residential home market. Those who need a bigger family space form 43.5% of buyers who want a new home as soon as possible.
On the other hand, this period in which home prices aren’t as predictable may prove to be more challenging for first-time homebuyers. As mentioned, COVID-19 has resulted in financial issues, which may have impacted people’s decision to invest in the luxury home market.
Another valid reason that makes would-be homeowners more cautious is the social distancing measures. In the first half of 2020, about 50% of buyers choose to delay their shopping activities because they are unable to look at homes in person. However, as quarantine regulations became more relaxed, many people started going out again to view properties in person — of course, wearing masks and practicing social distancing.
Over time, more and more people are reevaluating their finance and investment choices, such as the kind of property they want to buy and where to buy them. In fact, this trend involving the mid-sized luxury market came about even before the pandemic happened, but the events of 2020 simply made the mid-sized luxury market more mainstream.
Like the less affluent, people in the market for elegant homes find more affordable housing attractive. They realize that they could also live their dream and enjoy the finer things in life by going to medium-sized metros instead of the biggest cities or towns.
Homes in secondary markets sell fast because of the ideal situations in places where they are located, away from high-cost cities. What makes this market promising are their stable job market and laidback atmosphere, which are primary considerations for certain demographics, including millennials and boomers.
At best, the pandemic has become a wake-up call for people to pay more attention to issues that tend to be ignored, including health and well-being. This is another reason why wealthy buyers are flocking to healthier and safer environments, such as townhouses in less crowded cities that are still accessible to work or business.
These locations also offer green spaces, bike trails, and walkable paths, among others, which have become top considerations for homeowners who aren’t willing to compromise on anything when it comes to family health and safety.
The pandemic has disrupted several aspects of life. You may be working or operating your business from home most of the time now, while your children are into virtual learning or online schooling. You may also have decided to put your vacation plans on hold until it’s safe to be traveling again.
With these scenarios, it’s essential to purchase a home more suitable to your family’s current needs and lifestyle. You want to be able to work in a quiet and private space, away from the busy sections of your home.
Similarly, you have to ensure that your kids can study in an area conducive to learning and where they won’t be distracted by family activities. As such, your property needs to have ample space for R&R, including a home theater, pool, fitness center, barbecue area, garden, and so on.
Having these home amenities in place will allow you to have the same quality of life you’ve always enjoyed with your family before the pandemic messed things up.
THE NEW LUXURY IN REAL ESTATE
It’s a fact of life that a crisis can pave the way for newer and better things, and the real estate industry is no exception. On the contrary, it serves as an example of how innovative and well-thought-out solutions can help homebuyers choose where or how exactly they want to live because, quite frankly, that’s what luxury living is all about.