This article first appeared in City & Country, The Edge Malaysia Weekly on October 15, 2018 - October 21, 2018

Young people’s mindset differs greatly from the older generation’s. This 24-year-old writer hears this all the time, from friends, family or just about anyone else. And as Reapfield Properties Sdn Bhd group chief operating officer Jonathan Lee puts it, “Last time, it was ‘I want to survive’ whereas now, it is more like ‘I want to live my life to the fullest’. The perspective is different.”

Yes, the younger generation did not live through wars or financial crises, among other things. Additionally, science and technology have improved so much that almost everything can be done easily and conveniently. And information is just a click away.

As the world evolves, people’s wants and needs change, and to cater for this, many industries, including the property sector, have to follow the flow and make the necessary changes.

With this in mind, City & Country has conducted a survey to explore what young working adults are looking for when they go house-hunting, the technologies that are in place to capture their attention and the problems they face in their bid to get what they desire. In this story, the young working adults referred to are those aged between 22 and 35.

To own or to rent?
In the survey, which was partcipated by 61 people, 75.4% of them say they prefer to buy a property for their own use. About 60% say it is a priority for them to buy a property because it would be a good investment, giving them a sense of security for the future and an asset to call their own.

When asked for the reasons why they prefer renting to buying a property, 45 respondents say the present prices are too high while 25 say they do not want a long-term commitment. Fourteen say it is more convenient to rent.

According to property experts, this age group will still want to own properties although the prices are high.

Ownership is very important for Asians as it is part of one’s identity and status, says Reapfield’s Lee. This mentality is ingrained in Asian culture.

Although the heart’s desire is to own a property, the forbidding price tag is holding back many young people. Laurelcap Sdn Bhd executive director Stanley Toh notes that due to the high property prices, most young working adults have to rent instead.

Savills (M) Sdn Bhd research and consultancy director Amy Wong concurs. However, she notes that more young people are starting to accept the “co-sharing” culture, which was introduced in their generation. “Being ‘asset-light’ is starting to appeal to some young people,” she adds.

Must-have criteria
According to Lee, affordability is the top item on the young people’s list, followed by space utilisation of the property, location and experience.

“Space utilisation is very important in terms of consideration because it is about who is using the property … only the owner or are there others involved?” he says.

“Experience is more about the facilities available at the development.”

Toh and Wong concur, adding that having easy access to amenities, facilities, public transport and highways is also important.

“An easy entry price, such as a low down payment, and the developer paying the legal fees for the sales and purchase agreement are other factors that young working adults look for as well,” says Wong.

Property consultants’ opinions coincide with the findings of the survey. About 75% of respondents say the “must-have” criterion is that the property is located close to amenities such as hospitals, shopping malls and schools while 70.5% want easy access to major highways. About 69% say they look at the facilities the projects have while 65.6% say they would go for developments that are located close to a public transport hub such as mass rapid transit and light rail transit stations.

Desires versus reality
Almost 64% of respondents prefer to buy a landed property and the main reason is that it has more space.

When asked the location they would want their properties to be located in, they pick Kuala Lumpur and Petaling Jaya. The reason: They have good connectivity and a lot of amenities.

According to data from EdgeProp.my, the median selling price of homes in Kuala Lumpur, based on 73,000 transactions from 2012 to 2017, was RM480,000.

In Bandar Baru Sri Petaling, which has terraced houses, semi-detached houses, bungalows and apartments, the median price was RM600,000. For Taman Tun Dr Ismail, which has terraced houses, semidees and bungalows, the median price was RM1.38 million. In Solaris Dutamas, the median selling price of serviced apartments was RM850,000.

For Petaling Jaya, the median sales price based on 6,000 transactions from 2012 to 2017 was RM470,035. Section 17, which has terraced houses, semidees, bungalows and high-rises, the median price was RM745,000. Taman SEA, which has terraced houses, semidees, bungalows and townhouses, the median price was RM879,000. Section 5, which has the same types of properties as Taman SEA, had the median price at RM1.5 million. The median selling price for Five Stones, a condominium in SS2, was RM1.54 million.

As mentioned earlier, affordability is a current issue and many respondents are concerned about it. However, Lee says, affordability is one thing and being realistic is another.

“It is not exactly about the price but, rather, what you want and what you can afford. You have to be realistic. There is a need for one to put in perspective what young people can actually afford,” he adds.

He notes that young people these days are not self-aware, and to overcome this, he believes there should be more platforms, dialogues and initiatives by the government to discuss this. “Not only the government but also the key partners, stakeholders and developers should help build that bridge and think about how to shape the thoughts of the young people. Self-awareness is very important.”

Capturing their attention with technology
Twenty-six respondents say they go to websites such as EdgeProp.my, iProperty and PropertyGuru to look for properties while 11 say they browse through advertisements posted on social media.

Toh says Facebook marketing is quite an effective method to reach out to this group. They have the ability to access information about projects and their locations as well as read the reviews online. “They are not easily fooled. Hence, it is harder for developers to sell their properties to this generation.”

Meanwhile, Lee thinks that the lack of seller-buyer engagement is a concern. “The people who are trying to sell properties — who are mainly from the older generation — are not using technology. Hence, they do not know how to engage potential buyers, the majority of whom are young working adults who are tech-savvy.”

Wong concurs with Toh, adding that young working adults these days are known to use their phones as a dictionary. “Anything that can’t be googled is not credible.”

Property customisation such as fingerprint door access to homes is getting more popular and young working adults would prefer equipment that can be automated or controlled by mobile phone apps such as property management systems.

“Dual-key units are also becoming common as they cater for adults who are living with their elderly parents, or vice versa,” she says.

Lee says that to connect with this tech-savvy group, technologies such as virtual reality are necessary. They provide an experiential component in the sense that people can immerse themselves in a proposition and get a better understanding of the product.

This approach will help in making better decisions, but the cost is a concern, he says.

“Virtual reality technology is gaining acceptance. If it is done well, it can be an excellent marketing tool,” Wong says, adding that social media is also effective as a point of reference for project information and reviews.

Toh says social media, virtual property expos and virtual reality may get young people intrigued with projects but do not necessarily help sales agents to close deals.

Matters such as loan approvals and documentation, which are part of the buying process, cannot be solved with technology.

What does the future hold?
“Moving forward, for the property market to cater for the tech-savvy generation, marketing will need to be carried out via the internet and social media,” says Toh.

Wong concurs. “The younger generation feel that information should be at their fingertips ... new developments, new restaurants in town, the latest reading spot … everything has to have an online presence,” she says.

“Data and information are becoming more readily available — as it should be — and the transparency helps in the marketing of anything these days.”

Lee says technology should not be limited to transactions but also encompass relations. The relationship aspect is very crucial. “The key is someone should help the young working adults find the right home. What they need is a person who will help them solve their problems, make their journey easier and engage with them, and have a relationship. It cannot be transactional alone.”

He believes there should be a website for discussions or forums where people can ask questions and give feedback. “Listings are important, but solution engagement and moderation of discussions will be more effective.”

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