Malaysian Millennials Are Snapping Up Property
According to a report, Millennials: The Future of Malaysia’s Real Estate Market?, from Kuala Lumpur-headquartered IQI, the No. 1 real estate network in Southeast Asia and the Middle East, Millennials have become Malaysia’s biggest buyers of new homes and sub-sale property, as well as the country’s biggest renters.
It was revealed that since the start of 2020, Millennials have accounted for 70 per cent of purchases of new projects, 53 per cent of purchases of sub-sale real estate and 55 per cent of rentals.
Kashif Ansari, IQI Group CEO, said:
“They are the dominant group in the market — especially in the middle and lower property price ranges. This is not surprising as Malaysia has a relatively young population and labour force. These group of young people have a strong inclination to own a house and they are no longer waiting to get into the property market.”
He added that while Millennials were not the biggest-spending group, they are the most numerous buyers.
When asked why, Ansari said, “In 2018, Millennials made up the largest market segment (26% or 8.4 million people) in the country. In 2020 year-to-date, Millennials already account for 70 per cent of all new home purchases. Their share of purchases at new projects is up from 62% in 2019 and from just 48% in 2018.
Their lead over their older counterparts has been growing at least since 2018. In 2019, their share grew to 62 per cent. It then grew to the afore-mentioned 70 per cent in 2020.
“They are the future of the real estate market. Millennials will continue to gain market share in the years to come. It is important that developers and real estate agents adjust themselves to better serve Millennial buyers.”
Creative Digital Marketing
Ansari also explained creative digital marketing has played a significant role in attracting these young buyers.
“Creative digital marketing and choosing the right platforms to showcase these properties for sale is crucial in engaging with this group of buyers.”
Hot Spots and Property Preference
The states where Millennials account for the largest share of new home purchases were in Sarawak and Kuala Lumpur.
“In Sarawak, Millennials account for 88 per cent of new home buying. In Kuala Lum- pur, they account for 70 per cent of new home buying. While in Sabah, Millennials purchase 53 per cent of all new homes that are sold. In Melaka and Penang, their share is less than half. In Penang, Millennials account for just 25 per cent of new home buying. In Melaka, Millennials buy 48 per cent of all new homes sold,” Ansari said.
Price & Amenities
The typical price range for Millennials is from MYR 400,000 to MYR 800,000. For example, developer EXSIM Group is launching a mixed development, Millerz Square @ Old Klang Road, designed exclusively for the Millenials. The development comprises of several components, including serviced apartments with the smallest layout of 1-bedroom, 1-bathroom with starting prices from MYR 600,000.
According to Michelle Siew, Head of Corporate Communications of EXSIM Group, “ Millerz Square is strategically located at the fringe of the KLcity centre. It’s close to key hotspots around the city and a wide array of conveniences. Mixed developments have everything that appeals to millennials. Practical design, a good tenant mix of retails and services, and proximity to transport and entertainment.
“Social spaces are at the top of the wish list for many Millennials. So Millerz Square has numerous lifestyle facilities such as a sky pool, lounge, and sky dining plus a karaoke room and sports amenities such as badminton courts, a yoga deck and even a games room. We know that Millennials enjoy socialising and the best is you can have all within your home.”