Re­port: Mil­len­ni­als to shape real es­tate mar­ket trends

China Daily (Canada) - - SHANGHAI - By WANG YING in Shang­hai

Raised dur­ing the re­cent eco­nomic boom in China, mil­len­ni­als rep­re­sent a rapidly grow­ing source of la­bor and con­sump­tion and are set to re­shape the fu­ture trends in China’s prop­erty mar­ket with their new life­style pref­er­ences, ac­cord­ing to new sur­vey re­sults by prop­erty con­sult­ing firm CBRE.

CBRE pro­jected that the way mil­len­ni­als live, work and play will also have a pro­found in­flu­ence on eco­nomics, opin­ions on work­place de­sign and func­tion­al­ity, and drive new at­ti­tudes to­wards con­sump­tion and ex­pe­ri­ence for the fore­see­able fu­ture. The global sur­vey polled 13,000 mil­len­ni­als aged be­tween 22 and 29, in­clud­ing 1,000 from the Chi­nese main­land.

Ac­cord­ing to the re­port ti­tled Mil­len­ni­als: Shap­ing the Fu­ture of Real Es­tate, as many as 61 per­cent of China’s mil­len­ni­als are still liv­ing with their fam­i­lies due to cul­tural norms and high prop­erty prices. How­ever, al­most half (48 per­cent) of them in­tend to move out within two years, a ra­tio is that markedly higher than those in the other na­tions and re­gions in the Asia-Pa­cific.

In ad­di­tion, 57 per­cent of Chi­nese re­spon­dents have ex­pressed a strong de­sire to buy prop­er­ties in the fu­ture re­gard­less of whether they are cur­rently liv­ing with par­ents or rent­ing a home.

The re­port also found that parental sup­port in home pur­chases have been in­dis­pens­able in the cur­rent prop­erty cli­mate, with more than two-thirds of re­spon­dents say­ing that they had re­ceived fi­nan­cial help from par­ents.

Among re­spon­dents in the Asi­aPa­cific, mil­len­ni­als in China and In­dia dis­played the strong­est in­ten­tions to buy their own prop­erty in the near fu­ture. In China, sta­bil­ity was cited as the main rea­son to buy a home, and usu­ally in­volves two sets of par­ents fund­ing the down pay­ment on a home for a newly mar­ried cou­ple.

“The re­port showed that up to 80 per­cent of Chi­nese mil­len­ni­als have the same be­lief as their par­ents — that home ownership is very im­por­tant to an in­di­vid­ual. How­ever, they are also more tol­er­ant than their par­ents when it comes to rent­ing a home should they not be able to af­ford buy­ing one,” said Xie Chen, head of CBRE re­search China.

“While many mil­len­ni­als in China are cur­rently choos­ing to rent af­ter mov­ing out of their par­ents’ homes as the prop­erty prices are too high, they do as­pire to own a house. De­vel­op­ers and city ad­min­is­tra­tors should take heed of these trends and con­struct more af­ford­able hous­ing for rental and sale. Small, mod­ern and prac­ti­cal units with good ameni­ties and ac­ces­si­bil­ity would be ideal for mil­len­ni­als,” said Xie.

Xie added that mil­len­ni­als’ pen­chant for high-qual­ity fa­cil­i­ties and ex­pe­ri­ences will in turn drive de­mand for long term rentals of white-col­lar apart­ments for sin­gles.

In terms of the im­pact on of­fice spa­ces, 81 per­cent of sur­vey re­spon­dents in­di­cated that high-qual­ity of­fice de­sign and lay­out will have a pos­i­tive im­pact on their work­ing ex­pe­ri­ence. They also un­der­lined the need for work-life bal­ance and per­sonal well-be­ing. The sur­vey sug­gested that com­pa­nies should strive to cre­ate a phys­i­cal work­place en­vi­ron­ment that meets these de­mands so that their mil­len­nial em­ploy­ees can be pro­duc­tive and mo­ti­vated.

The sur­vey found that Chi­nese mil­len­ni­als are will­ing to in­crease dis­cre­tionary spend­ing, par­tic­u­larly on leisure ac­tiv­i­ties, and eat out an av­er­age of 5.9 days per month. Twenty-five per­cent of the re­spon­dents in­di­cated that be­ing able to “see and feel the prod­ucts” is the pri­mary rea­son for shop­ping in phys­i­cal stores. As such, brickand-mor­tar stores, in par­tic­u­lar shop­ping cen­ters, that pro­vide new ex­pe­ri­ences and a con­ducive en­vi­ron­ment for so­cial­iz­ing are con­sid­ered ir­re­place­able.

In or­der to tap into this trend, the sur­vey sug­gested that re­tail­ers ad­just their of­fer­ings ac­cord­ingly.

Xie Chen, head of CBRE re­search China

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.