Knight Frank’s Global Buyer Survey 2021 released analyses the impact that Covid-19 has had on residential buyers’ attitudes to purchasing homes around the world. The survey, which represents the views of over 900 Knight Frank clients across 49 markets highlights that:
- Globally, 19% of respondents have moved house since the start of the pandemic, this rises to 25% in Australasia and North America. Of the non-movers, 20% are more inclined to move in 2021 as the pandemic continues cities are back in favour. Out of those respondents who are more inclined to move in the next 12 months, 38% of them are looking at city locations with 33% opting for the suburbs
46% of respondents are more likely to buy a detached home or villa but demand for apartments has increased to 19%, up from 12% in 2020. This reflects an increase in demand for both larger, more spacious apartments, and pieds-a-terre in city centres
The appetite for ski homes has increased from 11% in 2020 to 18% in 2021 with demand from North American and Asian buyers above the global average
- Eighty-four per cent of respondents said that is important to them. 28% said they would be more likely to buy an energy efficient home if future environmental regulations were to have a direct impact on its value and around 27% would be willing to pay a premium for a greener, more energy efficient home
Kate Everett-Allen, head of international residential research at Knight Frank said: “Over two-thirds of people expect the value of their current home to increase in the next year with most expecting a rise of between 1% and 9% over the 12-month period. This coincides with Knight Frank’s Prime Global Forecast which highlights that global house prices are, on average likely to increase by 4% in 2021.”
Further findings from the report reveal that the pandemic has sparked a wave of second home demand. Some 33% of buyers say they are more likely to purchase a second home as a result of Covid-19, up from 26% last year. Of those looking to buy a second home, 23% say the pandemic has influenced where they want to buy and 22% say it has delayed their purchase plans.
Victoria Garrett, head of residential, Asia–Pacific at Knight Frank said: “The story for residential markets across Asia–Pacific has been one of resilience in the last 12 months. Hong Kong SAR has achieved record prices, Singapore’s sales and rental sectors have seen robust levels of activity, whilst the appetite for property amongst domestic buyers in New Zealand and Australia has surged.
For Asian buyers, the pandemic has once again reaffirmed the appeal of property as a means of wealth preservation and portfolio diversification. A lack of stock is now the common denominator for most prime markets in the region and the absorption of stock is expected to go up another level once the borders reopen.” Looking to branded residences, one in three buyers (39%) would be willing to pay a premium for a branded residence according to the survey, a figure that rises to 45% and 43% in Australasia and Asia respectively. Top amongst the key motives for purchasing a branded residence is the service provision and amenities such a development affords. Second comes the development’s high-yielding potential and in third place, the building’s management and maintenance proved an appealing prospect.
“Over the recent years, we have seen an increasing appetite for branded residences in Asia–Pacific. This can be attributed to the growth of the design–savvy consumer, the growing importance of brand trust in our society, and ultimately, developers who are starting to recognise the importance of home as a high involvement purchase. Our home is our sanctuary more than ever before and we are demanding much more from it than we ever have,” Garrett added.
Finally, the report sheds light on the pandemic-induced surge in property purchases by expatriates looking to acquire a base back home. The survey results confirm that the US, Singapore, Hong Kong SAR, the UK and the Philippines were the key locations expatriate respondents were based prior to the pandemic. For those that returned home, a desire to be closer to family (36%) was the biggest motivating factor, followed by an improved quality of life (24%) and a change in employment circumstances (16%).
Garrett said, “With the prolonged air restrictions, repatriation and remote-working are two trends proven to be more prominent than ever. Particularly inAsia-Pacific, an increasing number of expats are starting to re-evaluate what do they want to do next and where do they want to be based, and many are looking to purchase a house back at home when international travel restrictions ease.”
You can read the full report at Global Buyer Survey