Second Homes Demand Rises from Life Continuity Plan
Back in 2011, Thailand was hit by one of the worst floods in our history, costing over a trillion baht in economic damages and affecting more than 13 million people, according to the World Bank. The event triggered the need for second homes, an escape plan or a continuity plan for businesses and individuals alike. Pattaya, Hua Hin and Khao Yai, all within driving distance of Bangkok, were the key beneficiaries during that time as developers launched numerous projects in response to the growing demand.
This year, the hazy skyline full of PM2.5 and the outbreak of COVID-19, where no one dares to predict what will happen even 3 days ahead, have again triggered that question in people’s minds: how can we best prepare ourselves for the great unknown?
The feedback from the past years made us realise how little control we have over our future. Thus, similar to business planning, diversification is needed. Many buyers are now thinking of acquiring a second home while considering the significant differences in living condition in another property and their existing house. While some urbanites search from a variety of properties in local beach-side condominiums, villas and mountain resort homes, others found their ideal second home overseas.
Second homes have been primarily purchased for a weekend getaway after people have decided from past visits that it’s a better idea to have their own space where their family and friends can visit anytime rather than pay for a hotel stay. Later, the second home has developed into an investment product for which buyers could get a return from rental yields and benefit from using it several nights per year.
Social distancing, work from home policy and business continuity plan are being aggressively enforced to ensure that businesses will weather this storm with all the vital parts intact. At individual levels, one must have a “life continuity plan” prepared, especially in an increasingly uncertain world like today.
An article written by Aliwassa Pathnadabutr, Managing Director of CBRE Thailand for Bangkok Post dated 25 March 2020.