What’s Driving Gen Z & Millennials in Malaysia’s Property Market?
Malaysia’s population currently stands at 34.1 million, with a population growth rate of 2%, according to DOSM, Malaysia. Although Malaysia is considered an aging nation, it will only reach an aged nation by 2030. It is now recorded that the median age in Malaysia is just at 30.5 years (2024) comparatively to 24 years back in 2005, Therefore Gen Z is still considered the largest age group in Malaysia, representing 26% of the total population.
In 2025, Gen Z (born between 1997 and 2012) will be aged 13 to 28, while Millennials (born between 1981 and 1996) will be between 29 and 44 years old. These two generations represent a significant portion of the population and they are expected to make up 70% of the workforce in Malaysia by 2025.
With the younger generation entering the workforce and moving into adulthood, many are starting to establish their own households and explore property ownership. Are their preferences and tastes in properties similar to or different from others?
Generation Z
Gen Z are Early Stage Buyers, as the younger generation, many Gen Z individuals are just starting to enter the property market. They’re primarily looking for affordable, entry-level homes like condominiums, apartments, or small landed properties in urban areas.
Many of Gen-Z are focused on real estate as an investment rather than a place to live long term, they seek for properties with capital appreciation and rental yields.
As they are Digital Savvy, their purchasing style is skewed towards how they purchase their everyday items too, by browsing online, comparing and making enquiries and purchasing through online platforms. They expect seamless digital experiences when researching properties from virtual tours to seamless online transactions for a purchase.
Millenials
As for Millenials, they are in the group of First-Time Home Buyers and are at the peak of buying their first homes or maybe their subsequent. They seek affordability and location. Prefer homes in suburban or up-and-coming areas, where they can get more value for their money.
Millennials are generally drawn to properties with accessibility and, preferring properties close to work, public transport, and amenities like shopping malls and entertainment options.
Due to the pandemic, flexible, multipurpose spaces that can serve as home offices or gyms have been their high request. Millennials want properties that can adapt to changing lifestyles and their work demands. They appreciate Tech-Enable homes that come with smart home technology, automated lighting, security systems and voice controlled assistants in their properties.
Understanding what drives them is crucial
Meeting the needs of Gen Z and Millennials while understanding what drives them is essential to shaping innovative solutions and unlocking new opportunities in the real estate market.
