Asian buyers shifting to holiday homes abroad in post-COVID purchases

Pre-COVID, Asian buyers were looking at investment returns when purchasing properties. Now they are interested in properties that can offer them lifestyle.

A recent survey from Knight Frank revealed that one in four people would consider moving homes post-COVID.

According to Knight Frank's Victoria Garrett, across Asia-Pacific, buyer appetite has been strongest in New Zealand, Australia, Chinese Mainland, Hong Kong, Korea and Japan post-lockdown.

"I think most markets are still adjusting and it is hard to say if this activity is part of a new market cycle or we are simply seeing pent-up demand being released. For those looking beyond Asia, we are seeing increased demand from Hong Kong and Korean buyers for US and UK markets, this is driven by buyers gravitating towards markets that are resilient, stable and transparent while offering long-term price appreciation and strong rental demand. Asian buyers looking to purchase abroad are traditionally investment focused but we are slowly starting to see interest in properties for their own use, as either primary or secondary residences."

"Perhaps the biggest trend I’ve observed has been the surge in expat flight. We have seen a real uptick in enquiries from Australians based in Singapore and Hong Kong looking for a base back home and we have seen the same amongst New Zealand and UK citizens. This has partly been driven by people moving due to employment changes but also families reassessing their priorities. Covid-19 has really made people take stock of their priorities and what is important to them and their families in terms of lifestyle," she added.

One in four survey respondents, said they were more likely to move home in the next 12 months as a result of the pandemic. Most respondents who said they were more likely to move in the next 12 months are seeking a different property in the same location (40%). Some 26% are seeking a different property elsewhere in the same country and 34% of those considering a move are considering a purchase abroad (9% of all respondents).

But where? The UK, Spain and France top the list of preferred destinations, followed by Australia, Canada, Switzerland and the US. Such countries offer a good quality of life, political stability, a secure currency, excellent education systems and in normal times are easily accessible. New Zealand, Portugal, Malta and Norway also ranked highly.

After a period of confinement, the message, not surprisingly, is that buyers want space. Some 45% of respondents say they are more likely to buy a detached family home than they were prior to Covid-19, with waterfront homes (40%) and rural homes (37%) also in favour. Demand for apartments has remained largely static with 52% of respondents stating their attitude to apartment living has remained the same.

Nearly two-thirds of respondents say they are more likely to work from home postlockdown, which explains why 64% say a home office is now more important. But some 32% say their working lifestyle will remain the same as before, suggesting the office still has an important role to play as a hub for innovation, collaboration, education and socialisation. Not surprisingly, 66% of respondents say large gardens and outdoor space are more important, with the lockdown period having emphasised the connection between wellbeing and the great outdoors. Privacy is also in demand, 52% say it’s more important, and 33% are more likely to want an annex for family members, perhaps Covid-19 has underlined the desire to have elderly or extended family members close by.

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