Modern city dwellers spend nearly 90% of their time indoors! Wellness-style real estate is gaining attention!

Leo Lo | 24 March 2023

Wellness Lifestyle Real Estate Initiative

This initiative focuses on improving the quality of life in real estate through a pollution-free environment and pro-nature design to achieve longevity. In a nutshell, wellness real estate refers to the design and construction of buildings that proactively take into account the overall health of the occupants. The term "wellness" refers not only to physical health, but also to mental, emotional, spiritual and community connections. A person needs to be in harmony with each other from the inside out. This is actually closer to the thinking of the Chinese community, and the concept is somewhat like feng shui or environmental science. It is also proven that health-centered communities have a higher level of activity, more social interaction, and therefore a higher sense of community.

Wellness Real Estate is in Short Supply

According to the Global Wellness Institute (GWI), residential real estate will be the next frontier in changing people's health and exercise habits. People's health is determined by their daily behaviors and lifestyles, and the homes and communities we live in have a direct impact on our behaviors and lifestyles. According to a Harvard University study, since modern urbanites spend almost 90 percent of their time indoors, indoor air quality and other health parameters in real estate are critical.

Therefore, it is not difficult to understand that potential buyers are willing to pay a premium of 10% to 25% for recreational development homes in the mid to high end of the market. Of course, the lack of demand for wellness properties in the market has also exacerbated the phenomenon of premium prices for "wellness homes and communities" in various countries.

Solution to Huge Medical Expenses of Chronic Diseases

Today, the development of residential real estate in Hong Kong can be said to be a snail's pace "dragon bed". This phenomenon also leads to a very stressful life, and many people live alone, and this unhealthy and inhumane life has long been self-evident. Moreover, the sedentary lifestyle of urbanites also brings about problems such as lack of physical exercise, social isolation and environmental deterioration, which are common in today's residential communities. If wellness real estate initiatives become widespread, governments can reduce the huge medical costs associated with chronic diseases in unhealthy communities.

Wellness Real Estate is Growing at 6% per year

Healthy lifestyle real estate is an emerging industry, with the wellness real estate sector accounting for approximately $134 billion in 2017, or 1.5% of the global annual construction market. The U.S., China, Australia, India, the U.K. and Germany account for three-quarters of the global recreational real estate market.

Environmental Sustainability

High-end residential properties around the world are creating healthy living environments, including improved indoor air, water and lighting, and fitness centers and spas are meeting the standards. More upscale residential properties even have health food restaurants and full-time on-site wellness professionals to assist residents. There is also a growing consensus to build bike trails and dog parks, community gardens and farmers' markets, and to enhance community accessibility to connect homes and communities. In addition, environmental sustainability, recreational programming and the promotion of the arts are also priorities.

Huge Opportunities After the Epidemic

Many wellness real estate developers are taking advantage of the surrounding hot springs, woodlands, salt caves and farmland to create unique and healthy living environments in harmony with nature.

The blurring of the boundaries between work, home and leisure (Work-Live-Play) means a reshuffling of housing, office and recreation facilities to address trends such as teleworking, the sharing economy and the rise of wellness living. There are huge opportunities for the development of wellness-style real estate after the epidemic. ■

The Author

Leo Lo is the Managing Director of CHFT Advisory and Appraisal Limited , Founder of Asia PropTech , as well as the Adjunct Assistant Professor in CUHK Business School . Leo is a surveyor-turned-entrepreneur and is always passionate to discover innovative ideas in the industry, he is constantly working to improve the proptech community and aspire for a better future of the industry.

Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official position of Proptech Institute, including its directors, employees and affiliates.

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