A New Generation of Home Buyers in MalaysiaWednesday, March 30, 2016
For decades, Malaysia has been a popular destination for tourists and businesses from around the world. People often come to love the country so much that they decide to live permanently within it. The state of the country’s economy has been a great influence upon the buyers and sellers of residential properties. Today on the market there are thousands of properties up for sale. It is the result of economic recessions, of whose recovery has been at a slow and steady rate. This financial condition has ushered in a whole new generation of homebuyers. This new generation, or Generation Y as it is commonly referred to, influences the housing market so much that this generation is often blamed or praised for most major market moves, as reported by Forbes. Not just are newly potential homeowners seeking a house for sale, but one that is also affordable and has future possibilities of a resale.
The rise of a new generation of homebuyers is due to the mere fact that expectations for housing units are changing. No longer does the vast majority of the market desire traditional homes. As the principles of capitalism define, a market changes to meet the needs and wishes of the consumer base in question. Today, Generation Y and Millennials are seeking properties at affordable rates. Not only must these pieces of real estate be relatively inexpensive, but they must also present flexible options when it comes to the future.
House Flipping Like Never Before
Unlike never before houses are bought and then resold a few years later. On real estate sites like Property Guru, property reselling also can occur almost immediately, and this is referred to as "house flipping." House flippers only make up four percent of the buying market yet are seeing record housing returns, as reported by the Asean Today. Their total house makeovers come to reflect the wishes of the new millennial house buyers, and this is why "flipped" housing units are resold so quickly.
But it is not just real estate adventurers who are reselling their homes. The average family today is much more flexible in Malaysia when it comes to settling down. Often a family or individual chooses a residential location due to personal or work-related reasons. As jobs change and the economy evolves, so too does the trends of the housing market. Whereas previously a family might live in one location for their entire lives, nowadays the trend is to remain in a house for only a few years or a decade at the most. It is irony because most financial advisers once voiced against the quick reselling of homes. Many of them thought that "house flipping" would have serious negative consequences. In fact, it has created a more flexible housing market that matches the current times we live in now.
The Big Shift in Housing Market
The trends of homebuyers reflect the evolution of statistics in real estate society today. Delayed marriages and the increasing prices of mortgage rates have resulted in society creating new priorities as a whole. Similarly, fewer couples are having children at young ages as was common just a decade ago. This has resulted in the younger generation not understanding the need for a larger home if they do not have kids. As a consequence, apartments have increasingly taken over homes as a popular residential choice for the Millennials.
The Rise of Smaller Spaces
The result of this vast change in society and the economy has significantly influenced the housing market. Only ten years ago individuals and families would buy large houses or even what can be considered estates. Such residential types require a large amount of mortgage to be paid annually. Since the worldwide economic recession began a decade ago, homebuyers have been changing their tastes to match their wallets. Nowadays homes that present a more compact and affordable living space are much preferred over their larger mansion type peers. The smaller a house or housing unit is, the lesser the mortgage must be paid down on it. It presents a great opportunity for the new generation of homebuyers who are financially aware of their decisions and stretch working hours to make ends meet. On average, smaller spaces are often easier to resell and require less upkeep and maintenance costs as well.
In conclusion, anyone who searches the housing market today in Malaysia will notice that conditions are much different from just a few years ago. As our economy and society changes, so too does the influences and conditions of the housing sector. This is primarily caused by a new generation of homebuyers who have been raised on different values. It was once thought that economic schemes could be the best influences on the housing market. But the truth of the matter shows that the evolution of a new generation of home buyers has a strong bearing on the real estate market in
due to societal changes. Malaysia