The concept of lifestyle purchases, or buying second homes, is gradually becoming more popular in Asia, and is expected to dramatically increase over the next five years, according to Knight Frank.
The property consultancy firm noted that the long-term prospects for capital appreciation may be positive if supply is constrained due to a sustained economic growth period or strict planning controls.
“According to our recent Prime International Residential Index, which tracks prices across 100 luxury residential markets worldwide, mainland second home markets recorded a 2.6 percent fall in prices in 2014,” said Knight Frank.
While it expects interest in second-home lifestyle purchases to increase in Asia, there remains a desire to yield an income from such acquisitions through commercial acquisitions, such as a small vineyard or holiday let.