TriBrand Prosperity 2020 Complete - Page 9



million in assets) represent a unique opportunity. While the
mainstream market has concern and behaves with caution,
this consumer is becoming more aggressive with investing and
feeling extremely confident in the market.
Our last paper, Media and the Message: Marketing Real Estate
to the Affluent, detailed the media consumption habits of
the global high-net-worth household, and some insights can
be carried forward for the ultra-high-net- worth consumer,
specifically:
- This group is more reliant on agents than websites for
information (though they do use both).
- Online videos, articles, and advertising in real estate/
design magazines and news media elicit an above average
response.
While the market bears an ever-growing group of potential
buyers, sellers are showing signs of concern that cannot be
ignored. Luxury second home sellers appear to have concerns
over the economy’s continued expansion; two-thirds predict a
recession is coming, though most believe it will last less than
one year. Despite similar demographics to buyers, sellers have
a distinct mindset toward concern for their assets.
External factors, such as the strength of the global economy
and security of retirement assets create significant concern
for sellers, their own behavior may be complicating matters.
Sellers are 65% more likely than buyers to say they spend
beyond their means and are 30% more likely than buyers
to be worried they may run out of money someday. Their
aggressive positioning in the market (currently own 3.8 homes
on average) combined with high luxury living may be too
much risk to bear ahead of an expected economic slowdown.
Divesting from the property may also free up some much
needed cash flow.
What are second home buyers
looking for?
Wellness is the new luxury
Affluent consumers have begun living with wellness in mind
and this also influences the second home market. In fact, 96%
take at least one aspect of wellness seriously as part of their
daily routine. Beyond physical and emotional wellness, which
most affluent consumers focus on, luxury buyers are keen to
improve their intellectual, social and even spiritual wellness.
73%
83%
Three-quarters of buyers take care to eat well,
exercise and stimulate their mind.
Eight-in-ten prioritize time with family and
friends.
Amenities that address these needs are sought by buyers,
and especially resort and second
home buyers because of a
growing demand for communities
that take a holistic approach to
overall wellness.
Wellness first began making
an impact in real estate in 2014
with the introduction of the
WELL Building Standard in the
commercial real estate space
as workers sought healthier
office environments. The WELL
Standard is a performance-based
system that measures, certifies
and monitors such features as
building materials, cleaning
products, water and air quality
and access to daylight and fitness
facilities.
The trend is now poised to
explode into the residential real
estate market worldwide, led in
part by demands from the affluent
consumer.
In a 2018 study by the Global
Wellness Institute, “Build Well
PROSPERITY 2020
9

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