Millennials, long eschewed by the previous generations for ruining or killing the housing market, are not becoming homeowners themselves. The demographic, born during the early ‘80s until the mid-’90s, has entered the workforce a long time ago and now, have well-established careers that can afford them to buy real estate properties to call their own.
In the Philippines, Millennials are emerging to become a key demographic across all sectors. Years after the last of them left the academe to pursue professional careers, they now have a greater purchasing power and have the capacity to change the market forever.
What do Filipino Millennials want from the property sector?
Millennials love to shop, especially now that making purchases has been made easier by e-commerce. However, more and more people are being conscious of the products they spend their hard-earned money on and how their actions impact the environment.
Young people everywhere, including in the Philippines, demand products that are made using sustainable materials and processes. Brands that offer high-quality, eco-friendly, and locally- and ethically-made products have cropped up in recent years, providing an alternative to fast-moving consumer goods (FCMG).
They are willing to spend more on products that do not harm the environment. A survey by data analytics company Nielsen found that 83% of Filipinos agreed that they will buy a product, even if it is more expensive if it is from a sustainable brand. Globally, Filipinos have one of the strongest inclinations to support socially-responsible and eco-friendly brands.
The desire to reduce their carbon footprint will likely play into how they choose properties to invest in. Filipino Millennials will be more likely to seek out sustainable property development, especially now that the population is experiencing the consequences of climate change.
They want a property that is energy efficient or has solar panels already installed, both of which reduces their emission and save money in the long run.
Location is a Primary Concern
In Metro Manila, where road congestion can stretch one’s daily commute to up to five hours, the location is king. Many Filipino buyers consider a property’s location a major factor when looking into real estate options. They choose to live somewhere near their place of work to avoid the long queues at public transport hubs and the soul-sucking traffic jams.
Lamudi, an international property portal, said in its report that a lot of its users are looking for more convenient living in the city where their offices are located.
ZipMatch, a local company in real estate, in their own study found that 47% of Filipino Millennials believe that Taguig is the ideal place to live in. This does not come as a surprise because, according to the same study, over half of those who responded prefer the fast-paced city life over the more quiet urban setting.
There are two groups of Millennials: the older Generation Y and the younger Generation Y. The older Generation Y are in their late 30s and are starting their own families. They are buying their own home because they are getting married and having kids.
The quality of the neighborhood is a major concern among the majority of the members of this demographic, followed by proximity to their jobs and affordability. Another factor considered is its accessibility in relation to schools.
A Good Deal
Most importantly, they want a home that is affordable.
The income in the Philippines has been stagnant for several years now. The price of goods, however, continues to go up. Filipino Millennials, therefore, want a good deal.
The rise of low-cost properties in Metro Manila has seen young professionals between the ages of 20 and 35 invest in real estate. The majority of younger Generation Y are buying their first homes which is not a surprise because they are only in their first years in the workforce. They are not earning much yet, but the availability of affordable properties enables them to become homeowners at such an early stage in their lives.
A lot of them prefer a house and lot, but an increasing number like the idea of living in a condominium. A detached single-family home is on the top of the wishlist of young homeowners. Some choose a townhouse to live in alone or with their families.
Filipino Millennials are, in many ways, similar to their counterparts in other countries. They care deeply about societal issues such as climate change which influence their purchase decisions. However, being in the Philippines, they also have to deal with situations that are unique to them. Their wage as well as the traffic congestion in Metro Manila affect the choices they make when it comes to investing in real estate properties.