TriBrand Prosperity 2020 Complete - Page 8



Affluent consumers from developing countries (such as Brazil,
Mexico, Saudi Arabia, UAE, China and Singapore) are younger
consumers. As a rule, the average age for these regions is
35–41 years, and they show greater market interest than those
from developed areas (such as North America and Europe),
which tend to skew older. All regions, except the Middle
East, have an equal or greater proportion of buyers than
sellers. More buyers tend to imply a seller’s market, which is
not necessarily the case on the whole. The disproportionate
amount of buyer demand though, can be seen in many highend markets which are struggling with a lack of inventory at all
price points including the high end.
What is the current state of the
resort and second home market?
Affluent consumers are in acquisition mode
What is the current state of the resort and
second home market?
Those who are in the market to purchase a luxury second
home are adding to their portfolio and unlikely to sell their
existing second home at this time—thus there are more buyers
than sellers. Interestingly too, this means that sellers are also
buyers, but buyers are not necessarily sellers.
Buyers show more confidence in the market than sellers.
More than half of buyers believe that now is a good time to
are more
seeingbuyers
a risingthan
competitive
as today’stoo,
buyers
purchase
second
relatively
few think
it is a good
sellers.spirit,
Interestingly
Thoseawho
arehome,
in thewhile
market
to purchase
a luxury
second Weare
believe
that
other
potential
buyers
have
reached
the
same
timehome
to sell.are
As adding
noted previously,
these
consumers
are
quite
this means that sellers are also buyers, but buyers
to their portfolio and unlikely to sell
conclusion, that it is a good time to purchase, possibly fueling
savvy when it comes to home ownership; 76% own two or
are not necessarily sellers.
their existing second home at this time—thus there
a fear of missing out on the best properties. More than half
more properties currently.
of luxury second home buyers believe the market is getting
stronger as new money floods the global marketplace.
RESORT/SECOND HOME MARKET—
Affluent consumers are in acquisition modeFueling the competition
nt state of the resort and
ket?
16%
n mode
second
sell
e
ellers.
d
85 Salten Point, Barnstable Village, MA. Last offered at $3,800,000
TOTAL GLOBAL AFFLUENT
Sell Exclusive
Both Buy and Sell
Buy Exclusive
22%
62%
are more buyers than sellers. Interestingly too,
this means that sellers are also buyers, but buyers
are not necessarily sellers.
Luxury
Luxury
0%
31%
Some sellers show concerns, as 33% believe the market is
Second
Second
Total
getting softer. This may be influenced by media reports about
Home
Home
Affluent
climate change threatening beachside resort communities,
Buyer
Seller
limited snowfall at ski resorts or news about golf course
closure
rates. Beyond that perception, they show signs of
Both
22%
28%
69%
concern in their own financial stability, coupled with the
BuytoExclusive
72%may be strong
0%
potential
turn a profit in the 62%
near term. These
motivating factors to sell.
Sell Exclusive
16%
Bottom line: There are more
think it is a good
time to
sell. As
notedever
previously,
potential
buyers
now
than
these consumers are quite savvy when it comes to home
before
Buyers show more confidence inLuxury
the market Luxury
than sellers.
More than half of buyers
that now is Second
a good
TotalbelieveSecond
Home
ownership; 76% own two or more properties currently.
time to purchase a Affluent
second home,Home
while relatively
few
Global personal wealth has continued to grow at a rapid pace
Buyer
Seller
since 2010. Despite a slight contraction between 2014 and
2016 the overall growth rate has been staggering. Looking
Both
22%
28%
69%
more recently, in just the past four years, personal wealth
Buy
Exclusive
62%
WHICH
OF THE FOLLOWING
IS72%
IT A GOOD0%
TIME TO DO?
globally has grown by 15% and the number of high-net-worth
individuals (HNWI) has increased by 25%. The potential market
Sell Exclusive
16%
0%
31%
Buy a Secondary Home | Sell a Secondary Homefor luxury property has never been bigger.
Those at the highest end of the wealth spectrum (over $10
80%
think
it is a good time to8 sell. As noted previously,
these consumers are quite savvy when it comes to home
70%
70%
PROSPERITY 2020

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