Millennials are those who born between the year of early 1980s and mid-1990s. Younger millennials have recently entered the working world. Millennials are a tough crowd to serve when it comes to the property market. According to a current research, 63% of those born during the 1980s and 1990s are still living with their parents; out of those who have moved out, over 60% are simply renting instead of purchasing a home of their own. The most important feature of a home they are looking for are the one that ease them by having public transportation nearby such as Boon Keng MRT which is convenient to office goers. Millennials now comprise roughly a quarter of the total workforce in the Asia Pacific region, and they are quickly forming a strong source of spending power. Millennials’ purchasing power will soon go beyond every other generation, so what are the key factors that influence their purchasing decisions and how to attract them on property?
The location has at all times been important in the real estate industry, and for most millennials, the ideal location for a home is close to a town area where they may have easy access to services and amenities such as shopping, clinics, hospitals, public transportation, and movie theatres. Office goers may not want to travel long distances for work or for leisure. However, millennials with children may prefer someplace more open and residential.
2. Tech savvy
Millennials look for a place to buy or rent with just a few clicks, and similarly, you should advertise your property with just a few clicks. Upload one or two pictures, and you are open for business. Tech-savvy here also means that millennials breathe, eat, and sleep with the internet.
3. Branding priority
Research has shown that millennials are definitely brand-conscious, but they only care about certain kinds of brands that help them characterize who they are. Millennial consumers were asked if they market themselves on social media and consider themselves to be a brand. A quarter of them said yes. Therefore, millennials are very attentive of their social status. Therefore, brands that can help them with their status will do well. In other words, investors who purchase properties at strategic locations with equally good brand names or signature addresses will gain a competitive advantage when it comes to attracting millennials.
Most millennials nowadays tend to work for long hours and are extremely money conscious, which is the reason they prefer homes that require little maintenance and little care. Having low maintenance features and fittings such as floors made of faux wood and granite countertops in the kitchen are looked upon as positives by millennials. Today’s millennials do not want to spend their leisure time doing household chores. On the other hand, they would go on a nature hike. This carefree mentality has birthed many popular on-demand services, ranging from car-share initiatives to food delivery subscriptions. Millennials simply prefer to maintain a daily life with as little stress as possible. They hate wasting their limited time.
5. Eco friendly home
We live in an age of technology where almost everyone has a mobile device and going wireless has become the norm. Today’s buyers want their homes to be technologically fitted, with wifi capabilities and a fast internet connection. But that is not all, millennials are also adopting a more sustainable and healthy lifestyle and will hence be looking for homes with energy efficient systems, good waste management and use of recyclable materials to reduce their carbon footprint. Eco-friendly homes can help you save time and money as the materials used are easily accessible. Many builders are able to buy the materials locally, which can save time and reduce the carbon footprint by minimising the distance they need to be shipped. Property development with a green footprint will certainly be a popular draw with this group of people.
Millennials’ purchasing power will soon beat every other generation, yet the key factors that influence their purchasing decisions are sometimes a mystery to marketers and service providers. Homeowners who are looking for tenants are also considered as service providers and marketers. Therefore, it pays to know the key factors and more, importantly, act upon them.