Monday, November 13, 2017

Property market paradigm shifting in Malaysia. Are CMOs aware?

Times and market have changed fast in a slow economy. The customer is changing even faster. Properties will begin to sell again, no doubt. But to whom and why are they buying? Where is the golden egg going to be?
A market and industry awakening to a changed era. Fast outdated will be property developers stuck with the old tactics - roadshows, buntings and flyers.
A whole generation of Ys have come to realise that the pricing of houses are beyond most and they have instead been spending their money on gadgets, good food and travel - near and far. Movies, computers, online shopping have all retained glorious sales charts despite the property sector glum. In general, GenY still have rooms allocated at their parents’ homes. There is always an extra family car to use. Yes. Owning their own home is ideal, but they are not getting the salaries they were expecting in relation to the prices of things.
And just popping their heads up from colleges soon is GenZ. A generation that have witnessed the slavery of their parents to housing loans, car loans, study loans and credit cards. Yet, a large number of these families already have second homes ready for them to live in or to maintain. There is a safety net. Home-loan-slavery is not top of their wanted list.
So, “ Who is buying?” The question is rather “Who is renting?”
AirBNB is the clearest indicator of the property future. The real estate is no longer desired to be owned but to be experienced. Places to go and see. Places to go and eat.
Rental-ability is the new yield yardstick. Property developers need to switch their end goals to the consumers of their customers' properties. Rentals and leases will be the new game.
It is not just the young who are traveling. Everyone is traveling to experience life and living in another place. Not sightseeing. But clearly living for weeks and months. Some for recuperative stays. Sabbaticals. Medical. Wellness. Academic. Escaping from cold winters. Hot summers.
Hence, new property projects can take heed of the impending and present trend to sell to customers willing to enter the rental market.
En bloc serviced suites? Rentals? A professionally run rental facility that is between AirBnb and hotels.
Be aware, be ready.

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