Philippine residential buyers value wellness

Philippine residential buyers value wellness, low density and green spaces for their next home, according to Santos Knight Frank study

  • 41% of local respondents are more likely to purchase a second home – higher than the average in Asia (27%) and the world (33%)
  • Nearly half said their budget for a next home has not changed since the start of the pandemic
  • 1 in every 3 local respondent said travel restrictions have not affected their home-buying plans

Manila, Philippines – Appetite for residential properties have remained strong within the high-income market in the Philippines as buyers continue to look for their next homes during the pandemic, according to Santos Knight Frank’s latest report called the Global Buyer Survey 2021: The Philippine Edition. The report suggests that – as demand for new and second homes continue – low-density environments and wellness-related features such as indoor air quality and green spaces are now important considerations in buyers’ search for their next residential property.

The Global Buyer Survey was conducted between June 10 and July 22, 2021. The global findings represent the views of over 900 respondents located across 49 countries and territories on their residential buying appetite in the next 12 months. The Philippine Edition focuses on results from local responses, where half of the said local respondents are of ages 40 to 60 years old and 83% live in the city.

The survey findings further suggest that 49% of local respondents said their budget for their next home has not changed since the start of the pandemic. There is also a noted growing interest for the suburbs (40%), while the city still remains ideal for 33% of local buyers. Overall, these findings suggest that the demand for homes remain but it also continues to evolve in light of the pandemic.

Marie Gimena-Villanueva, Associate Director for Residential Services at Santos Knight Frank says: “The pandemic has amplified buyers’ concerns on their health, wellbeing, comfort, and safety, and we see this clearly reflected on the shifting preference in acquiring new or secondary homes. As we see recovery from the pandemic over the next months, buyers who want to acquire residential property should need to make a decision soon amid the discounts we see today. Our survey suggests that 39% of owners expect the value of their property to increase between 1% to 9% over the next 12 months from the start of the survey, reflecting increasing market confidence.”

A four-bedroom house and lot for sale in south Metro Manila near Alabang

Key Findings for 2021

  • According to the survey, majority of the respondents in the Philippines have said that they moved houses since COVID-19 began, a decision that was primarily driven by the need for outdoor space (33%), downsizing (17%), and access to better amenities (17%).
  • 24% said their decision to buy was delayed due to travel restrictions, while 36% said travel restrictions have not influenced their purchase plans at all.
  • 35% of respondents’ main motivation for buying a next house is to upgrade the family’s primary residence.
  • 41% of local respondents are more likely to purchase a second home, which is higher than the average in Asia (27%) and the world (33%). After more than a year of experiencing travel restrictions, second homes are not only seen as an investment but also as a private destination and accessible place of rest during times when travel is restricted.
  • 1 in every 3 local respondents said they are more likely to move to a detached home or villa and 23% in waterfront residences.
  • Location features that have increased in importance: proximity to green space (17%), good air quality (17%), access to good healthcare (16%), and good views (12%)
  • Functional property features that have become more important: access to high-speed broadband (13%) and a home office/study (10%), while a number are health and wellness-related features such as outdoor space (10%) and wellness and well-being amenities (10%)
  • Greener, energy efficient homes are of interest in the majority of local respondents – 94% said the energy efficiency of a future home is either very important or important.

Download Santos Knight Frank’s Global Buyer Survey: The Philippine Edition at www.santosknightfrank.com/realestateoutlook

Download Knight Frank’s global edition at https://www.knightfrank.com/research/report-library/global-buyer-survey-8382.aspx

For more information, contact Ria.Lontoc@santos.knightfrank.ph

 

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The world of real estate can be a difficult place to navigate. Whether property is your investment or a tool that drives your business success, you need a partner who can guide you in every step of the way.

Since 1994, Santos Knight Frank has been guiding Fortune 1000 companies, BPOs, private clients, and institutions in all facets of real estate. We advise companies on their best office, retail, and industrial location, oversee commercial fit-out projects, and manage facilities. We have facilitated over 4 million sqm of office transactions on behalf of clients and managed over 40 million sqm of real estate under our property & facilities management arm.

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Santos Knight Frank is part of the global Knight Frank network of over 384 offices in 51 markets, including the strategically important U.S. partnerships with Cresa (commercial real estate) and Douglas Elliman (residential real estate).

We are locally expert and globally connected, end-to-end and best-in-class – as any great partner in property should be.