There are a couple of typical conclusions about the millennials when it comes to the property market. Some say they would NOT be able to buy their own home. Here’s one article. Some survey however shows that 94 percent of millennials buying a home within 5 years! click here for article I read interesting thoughts by AREA Management Sdn Bhd executive chairman Datuk Stewart Labrooy. His views were presented in an Article in TheStar here. Let’s look at a few key points shared by him. These are those few points that I agree totally because many millennials I know are actually doing it today! 🙂 Nope, I am not a millennial. I am a Gen-X; proud one!
Datuk Stewart shared many good points. I am highlighting a few that I personally think will make a difference.
It’s about access and not ownership. Instead of purchasing big ticket items, the millennials may be delaying them. A car can be easily replaced by GRAB, for example. A home can always be a rented one and does not need to be one where they have to pay through their note every month for the mortgage. (When we know the majority of millennials are doing this, we should do the opposite yeah. Take advantage of this so that when the demand for rental units go up, we actually have unit(s) to rent out to them. As for the developers, perhaps can start to focus even more on developments which can be used for Rent-To-Own. Without the need for huge downpayments and yet the flexibility to own a unit in future, this is attractive)
Extensive comparisons before they buy. They would opt for development with a lifestyle component that appeals to what they like. This is why it’s really not easy to appeal to them. Every new development must be better than the one a few years before. In fact many may not like to get into debt at such an early stage in their lives. (What this tells is would be the developers’ marketing better not be confined to the same old same old actitivies yeah. Doing more is likely to be the only way, not doing less or even cutting marketing budgets! Events can even be family run instead of just the usual free food and drinks for example. Yes, engaging good property blogs would be one of them too.)
Office spaces will look very different. Frankly, I think millennials are evaluating their potential new office much more than the extra RM200 salary today. One told me this, ‘my friend’s office looks so cool. If they hire me, I will join them.’ Funny but true! Careers can be built anywhere but feeling comfortable every minute of the day at work is now a necessity. I have not known of any millennials who tell me that they still prefer an office without some creature comforts such as a fully equipped pantry (coffee machines!) or even a games room so that they can release some tension occasionally. Not many companies can be like Google but then again those traditional desk and chair cubicles of yesterday are not going to be popular again.
There are many other points shared by Datuk Stewart about millennials in TheStar article. Please read it here. Millennials may get the best deals because they are the ones who will make a decision fast, as soon as they have done their comparisons. The notion of ‘analysis paralysis’ no longer resides with them. In fact if we are to ask them to do too much research, they will lose interest. Just look at the startups of today. The younger CEOs do not just learn faster but they apply what they learn quickly too. Disruptions happen as a result and new jobs are created even as older ones are lost along the way. I think developers who are able to understand things millennials like and build quickly will become far more successful in the future. The authorities better help the developers or else our unsold units may continue to rise… Millennials are not easy… to satisfy. Happy buying, millennials!
written on 1 June 2018
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