As we hit the one year quarantine anniversary of the Philippines, the longest recorded COVID-19 lockdown in the world, we realize that, according to the World Economic Outlook, the Great Lockdown in 2020 is the worst recession since the Great Depression, even far worse than the Global Financial Crisis between mid-2007 and early 2009. And in a span of one year to study its effect on the economy, there has been an influx of research and articles on various topics, all tailored in the context of the global pandemic. These studies have helped the country, as well as the world, slowly but surely ease into a new normal; a normal where we can observe productivity safely. Moreover, these studies aim to answer important industry questions that have bothered plenty of investors throughout the year. A prime concern of these individuals is where to devote their attention and finances, and whether or not to divest holdings, during a time of economic downturn. However, you’ll be surprised to know that this period proved to be an opportunity to thrive in sectors that invested in pandemic-proof technology; one of which stands out is luxury real estate investment.
On the bright side, along with the rollout of the vaccines, the global crisis’ huge impact on people’s livelihoods has compelled large corporations and organizations to strategize accordingly and help stabilize the world’s economy. These strategies are based on the researches made to substantiate economic decisions. For investors, it’s a matter of choice. It goes without saying that without facts to back critical decisions, there will be financial repercussions. With this, it’s good to know that not all industries are affected on the same scale. Based on the International Monetary Fund, the industries most affected globally are travel or transportation and insurance. Meanwhile, the services industry flourished. More specifically, and on the local level, sectors that thrived are food manufacturing, grocery stores, telecommunications/broadband service, as well as sin products: liquor and tobacco. This is due to the consumer behaviors affected by the deviation from office work and physical schooling, towards the work and study from home setup. The sectors under the services industry particularly thrived, having been subject to technological innovations to comply with health restrictions. These online services continue to make it easier for people to adapt to the new normal, right in the comforts of their homes.
Along with the spike in sectors under the services industry and the government-mandated nationwide quarantine, it’s quite self-explanatory that the real estate industry would correspondingly rise – and there are studies to justify this statement. In line with travel bans and imposed social distancing measures, there is no better investment than a luxury house and lot.
The real estate industry has shifted from traditional marketing methods to more modern digital platforms for an easier customer experience during the new normal.
Luxury real estate investment continues to be resilient during times of crisis
As stated in Collier’s reports, the impact of the pandemic is probably worse than the Global Financial Crisis of 2008-2009, but it’s important to note that the country is faring better than it did during the Asian Financial Crisis. This is because the Philippines’ financial system is actually much stronger now. The Asian Financial Crisis, also known as the “Asian Contagion,” was a two-year series of currency devaluation and declines in the Asian market, beginning in the year 1997. Such an economic calamity pushed Asian leaders to come up with some much-needed financial and government reforms. This led to a more resilient economy and the nation as a whole.
Likewise, the Philippine real estate industry remains optimistic, according to leading real estate service company Santos Knight Frank. Manila’s prime residential market registered one of the highest growth rates globally in 2019, increasing by a whopping 6.5 percent in Knight Frank’s Prime International Residential Index. That makes the residential market growth rate of Metro Manila alone, the eighth highest globally and impressively the third highest in Asia. This growth is driven by a tight supply of luxury and high-end properties, an increasing number of Filipino UHNI or ultra-high net worth individuals, and continued demand from foreign buyers.
Ultra-high net individuals have chosen to invest in real estate giants that continue to progress through technological innovations and by quickly adapting to the new normal.
The luxury property market is financially nonvulnerable
The prolonged nationwide lockdown has resulted in a strong demand for alternative residences in the affluent market, given that this segment mostly comprises high net worth individuals, middle-aged and above, who have families. With this, there is definitely a rise in interest in the luxuries of wide spaces, green landscapes, 24/7 strict security, and of course, complete COVID-19 protocols. This is especially true for wealthy retirees who want to settle down in healthy environments away from crowded areas that could potentially be hubs for spreading the virus. Indeed, they are more than willing to invest in the health, safety, and comfort of their families during these times. Spending habits may have adapted to the new normal in terms of digital platforms and online payment options; nonetheless, the luxury market is composed of business savvy individuals who are financially non vulnerable in a global pandemic.
Brittany Corporation’s Crosswinds Tagaytay offers a lifestyle of exclusivity and beauty in a breathtaking setting atop mountains of rich flora and chilly crisp air.
Moreover, real estate giants such as Brittany Corporation by Vista Land have the experience and background from previous economic downturns in history to know how the market behaves during these trying times. Presently, the industry leader has implemented successful marketing strategies to attract affluent folk by investing in research and monitoring market trends. With the rise in demand for high-end easy-to-use technology, Brittany Corporation has presented to its stakeholders’ innovative approaches to generate sales in the context of the pandemic. From strategically placed online advertisements, impactful social media presence, and user-friendly websites, to virtual tours, online discussions, and easy online payment methods like the AllEasy app, the corporation has every part of the online customer journey covered and tailored for ease. Furthermore, the wide collection of beautiful luxury houses and lots it offers are remarkably attractive themselves. Complete with the thematic appeal inspired by scenic destinations in the world, exclusively well-maintained amenities, around the clock security personnel and staff, a master-planned landscape of lush greenery, and impressive mansions as model units of classic architecture, there’s no questioning why Brittany Corporation is the top-of-mind luxury home choice of the affluent folk.