Representing the views of over 700 clients and across 44 countries, the Knight Frank Global Buyer Survey analyses the impact the COVID-19 pandemic has had on property markets and, in particular, on residential buyers’ attitudes around the world.

At a Glance:

• The UK, Spain and France, are the top three locations for those considering a move abroad post-COVID-19 
• Improved access to quality of healthcare is now the second most important motive behind a property purchase 
• Buyers expect some property prices to decline over the next 12 months, although 53 per cent of respondents say their budget has remained the same or increased since the start of the crisis
• Over a quarter of respondents say they are more likely to buy a second home as a result of the pandemic 
• Over half of respondents have either travelled abroad already or will do so within three months of borders reopening 

Kate Everett-Allen, Knight Frank’s head of international residential research said the crisis has fundamentally changed the way we live our everyday lives with the home now a hub from which we work, exercise, learn, socialise and relax. 

About the respondents to the survey. Source: Knight Frank

“With demands on the home expanding and people having had time to reflect on the way they live and use their space, it is inevitable that as we ease out of lockdown these changes will have repercussions on property markets around the world," said Ms Everett-Allen. 

Some of the survey findings are to be expected – a desire for more outdoor space and a home office for example.

However, foreign governments’ handling of the COVID-19 crisis has also become a key consideration for second home buyers around the world. 

The report has also been able to highlight future buying intentions.

These include one in four people surveyed, said they were more likely to move in the next 12 months as a result of the pandemic, with most of these respondents seeking a different property in the same location (40 per cent). 

Around 26 per cent said they are willing to move to a different property elsewhere in the same country and 34 per cent of those considering a move are considering a purchase abroad (9 per cent of all respondents). 

Dominic Heaton-Watson, Associate Director, International Residential Project Marketing, Knight Frank Malaysia said the report found that UK, Spain and France top the list of preferred destinations to purchase a home.

"These were followed by Australia, Canada, Switzerland and the US,"  said Mr Heaton-Watson.

"Countries that offer a good quality of life, political stability, transparent laws, a secure currency, excellent education systems and in normal times are easily accessible were attractive to the survey respondents.

"New Zealand, Portugal, Malta and Norway also ranked highly.” 

Upgrading the family’s main residence ranked highest as the reason for purchasing, with improved access to quality healthcare ranking second, a holiday home in the sun was ranked third followed by business or employment reasons in fourth place. 

Lifestyle 

After a period of confinement, the message from survey respondents is that buyers want space.

Forty-five per cent of respondents say they are more likely to buy a detached family home than they were prior to COVID-19, with waterfront homes (40 per cent) and rural homes (37 per cent) also in favour. 

“The period of Malaysia’s Movement Control Order (MCO) allowed our clients time to reflect on what they want from a home," said Mr Heaton-Watson.

Knight Frank lifestyle responses. Source: Knight Frank

"Nearly two-thirds of respondents in the Global Buyer Survey 2020 say they are more likely to work from home post-lockdown, which explains why 64 per cent say a home office is now more important.

"Locally, our residential advisors have seen a marked increase in enquiries for landed properties.

"Our Malaysia-based clients who invest overseas have taken this into account when reviewing property investments in safe-haven destinations like London where having a 2nd bedroom as flexible work space has become popular.” 

Thirty-two per cent 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. 

Unsurprisingly, 66 per cent 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 with 52 per cent of respondents saying it’s more important, and 33 per cent are more likely to want an annex for family members, with COVID-19 perhaps underlining the desire to have elderly or extended family members close by. 

Survey respondents on travel Source: Knight Frank

Travel is a critical factor, not just for those wanting to secure a retreat abroad but for existing home owners keen to recoup some lost income from 2020’s rental season.

On this issue, there is a degree of confidence emerging - over a quarter of respondents have either travelled abroad already or will do so within one month of borders reopening.

Another 25 per cent will travel within one to three months, 37 per cent between six and 12 months, and only 13 per cent said they would wait 12 months or more before embarking
on an overseas trip. 

Prices 

The survey highlights that buyers expect some property prices to fall over the next 12 months.

The Knight Frank Prime Global Forecast, conducted in April 2020, shows that on average prices are anticipated to fall in 16 of the 20 cities tracked in the report in 2020. 

Of the 56 per cent respondents that expect prices to fall over the next 12 months, 27 per cent expect prices to fall by less than 10 per cent, but 25 per cent expect no change and 19 per cent expect prices to increase. 

Some 53 per cent of buyers believe their budget has either remained the same or increased since the start of the crisis.

With few opportunities to spend during lockdown, it is likely buyers have spent less and saved more.

“For Malaysia-based clients buying into the prime central London market, they are effectively enjoying a circa 23 per cent discount from 2016 prices based on currency and
price moderations," said Mr Heaton-Watson.

"Well known for its higher education, the UK remains top of the list for many Malaysia-based families, and the ‘lock-down lift-off’ saw a release of pent up demand and return to pre-pandemic levels of activity.

"The stamp duty holiday recently announced by the UK government certainly sparked a great deal of interest and continues to do so, while the cheap, low interest rate environment is likely to be around for the foreseeable future.” 

However, over 30 per cent of respondents believe their budget has declined by over 10 per cent since the start of the crisis, no doubt as a result of companies having to implement cost saving initiatives. 

Second Homes 

Over 26 per cent of respondents said they were more likely to buy a second home as a result of the pandemic, presumably to enhance their lifestyle and to use as a retreat in the event of a second spike.

Knight Frank data supports this view, with a surge in enquiries witnessed immediately after lockdown in prime second home European hotspots across France and Italy. 

Mark Harvey, head of international sales at Knight Frank said buyers are generally seeking three key factors; good broadband, quality healthcare and a property capable of generating a reliable income. 

"We’ve seen Europeans take shorter holidays across multiple locations in recent summers, but I think we may see a return to the traditional European summer with families decamping for four to six weeks at a time and entertaining family and friends in one location.

"At the heart of this change in buyer attitudes is wellness and family, which is why I think such trends are likely to endure.” 

Almost one in three respondents (32 per cent) is more likely to want a second home that they can extend, and 29 per cent are more likely to seek a property offering secondary accommodation. 

Nearly two-thirds of buyers say when looking for a second home abroad they would be influenced by the government's handling of the Covid-19 crisis.

Countries such as Germany, Austria, Greece, the United Arab Emirates, Singapore and New Zealand may, as a result, rate highly amongst second home buyers in the coming months.

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