New market breed changing PH property landscape
They are changing the game.
Millennials (or those born from 1980 to 1994) and the Generation Z (born from 1995 to 2012) are increasingly redefining today’s trends, preferences and lifestyles, making these two demographic cohorts a target of many brands and industries.
These two segments are believed to comprise an attractive market not only because they comprise the bulk of today’s population, but more notably because they wield a certain influence and are believed to have strong purchasing power.
Such factors have prompted many companies to craft fresh and unique strategies that would specifically target the millennials and the Gen Z—segments that continue to grow in number, thus making them a strong force to reckon with.
Based on the 2010 Census-based Population Projections by the Philippine Statistics Authority, millennials (those aged 25 years to 39 years) and the Gen Z (up to 24 years old) may comprise roughly half of the total estimated population this year of about 108 million. Previous data from real estate brokerage firm KMC Savills meanwhile showed there were approximately 28 million millennials, based on Comelec’s voters data in 2015.
Having such a huge chunk of the population within these two segments offers companies and industries new lucrative markets to cater to. Even property firms are recrafting their strategies in order to better serve these generations—deemed as the new breed of homebuyers and end-users who are expected to help sustain the industry’s growth.
How so? Millennials would have its oldest group to be at least 39 years old, which means that this generation should be either settling down and raising families, or investing in properties that would eventually generate lucrative returns. And since they are reportedly poised to become the highest spenders given the assumption that they have stable jobs or businesses, and are nearing their prime earning years, they make an ideal market for real estate firms.
Companies like Vista Land, Avida Land and DataLand have thus tailored their respective marketing strategies to fit the dynamic lifestyle and changing needs of the millennials.
Meanwhile, the country has also seen a new generation of consumers from the much younger Gen Z which should already have a portion of its generation that are either students living in university residences or young professionals that have opted to rent condominium units or dorm spaces that are nearer their workplaces.
For this generation, the likes of Torre Lorenzo Development Corp., SM Development Corp., and even boutique developer ArthaLand Corp. have created their respective student residences, as they recognize a pressing need for premium spaces that would cater to the academe.
Colliers International Philippines pointed out that there has been a steady demand for student-centered residential condominiums. This prompted a significant growth in this segment as developers have started to target a niche market—students. Colliers thus expected similar projects being launched near university areas as property firms cash in on the sustained demand.
Even Lamudi Philippines’ Digital Property Seeker Series 2019 stated that “property seekers from the 25- to 34-year-old age bracket expressed the highest interest. All indicators have them surpassing the 35 percent mark…According to The Outlook 2018: Lamudi’s Comprehensive Look in the Philippine Real Estate, millennials are still the most curious, accounting for the biggest chunk of our page visit. This market grew up in the age of digital devices and internet access that make searching and buying properties more convenient for them.”
In the next pages, you will find possible home choices that cater to either millennials or students and their highly dynamic lifestyles.
IN THE KNOW
Millennials
Anyone born between 1981 and 1996 is considered a millennial, according to US-based Pew Research Center.
In the Philippines, millennials make up about a third of the country’s population. This generation composed of Filipinos now in their early twenties to late thirties was the first to come of age in the new millennium.
26.9 percent
Proportion of employed persons aged 25 to 34 years, the largest among age groups, according to the July 2018 Labor Force Survey
77 percent
Proportion of millennials who feel financially confident, according to the May 2017 Allianz Generations Ahead Study, an online survey of 3,000 US adults
41 percent
Proportion of millennials said they always set aside money each month for saving, according to the May 2017 Allianz Generations Ahead Study, an online survey of 3,000 US adults
57 percent
Proportion of millennials who said they spent money they had not planned to because of what they saw on their social media feeds, according to the May 2017 Allianz Generations Ahead Study, an online survey of 3,000 US adults
Sources: Inquirer Archives, psa.gov.ph, www.pewresearch.org
