Real estate optimism focuses on healthcare, retirement

*_{THE PANDEMIC has significantly affected wealthy Filipinos, as most family-led conglomerates have stakes in retail, hospitality, and aviation. — PHILIPPINE STAR/MICHAEL VARCAS}*

POST-PANDEMIC property investment opportunities are focused on healthcare, offices and retirement, real estate service provider Santos Knight Frank said.

According to the Philippine results of the global Knight Frank survey, individuals with high net worth in the Philippines have a “soft level” of optimism this year.

High net worth individuals (HNWIs) in the population — or those with net worth over $1 million — are interested in healthcare investments, according to almost half of wealth managers surveyed said.

Meanwhile, 42% said they are interested in offices, while others could be more interested in retirement (33%) and industrial and logistics (25%) investments.

“One in every 3 HNWI is also looking to buy a new home primarily to upgrade their family’s main residence, for leisure/holiday, or permanent movement,” Kash A. Salvador, Santos Knight Frank director of investment and capital markets, said in an e-mail on Friday.

Santos Knight Frank, the Philippine affiliate of Knight Frank, said that the coronavirus disease 2019 (COVID-19) pandemic has significantly affected wealthy Filipinos, because most family-led conglomerates have stakes in retail, hospitality, and aviation.

These industries have been battered by the slump in tourism and mall foot traffic, as the government continues to implement restrictions to contain the spread of the virus.

Tourism revenues last year dropped 83% to P81.4 billion after pandemic-related restrictions prompted a significant decline in foreign visitors, the Department of Tourism said.

“A significant number of wealth managers said their clients’ wealth has either remained the same or decreased marginally,” Mr. Salvador said.

“Liquidity has been a priority for HNWIs with businesses, and so we have seen liquidation of assets especially of properties which do not support core businesses.”

Despite the decline last year, the firm is expecting a reversal over a five-year period.

The Knight Frank wealth report 2021 said that the number of super-rich Filipinos is likely to grow between 2020 to 2025, in line with a global trend, after the number dropped last year.

The forecast, the report said, represents “optimism for the emergence of a new economic cycle and set new expectations for the post-pandemic world.”

The firm’s Attitude Survey consulted 600 private bankers and wealth advisors globally between October and November last year. Santos Knight Frank has not yet reported how many were surveyed in the Philippines.

Article and Photo originally posted by Business World last March 9, 2021 12:05am and written by Jenina P. Ibañez.