In today’s rapidly urbanizing landscape, high-rise developments are becoming the hallmark of modern city living. These vertical residences cater primarily to younger homebuyers eager to carve out their independence. However, the younger generation, specifically Gen Z, seems to have their hearts set on something else โ landed properties. While high-rise buildings dominate urban skylines, Gen Z dreams of homes with more space and privacy.
In a survey conducted by EdgeProp, 58 respondents aged between 21 and 30 were asked about their views on homeownership. The survey revealed their thoughts on whether owning a home by the age of 30 was feasible, the challenges they faced in doing so, and what type of property they preferred.
The findings are both surprising and insightful, shedding light on how Malaysiaโs youngest adults perceive the property market and their journey toward homeownership.
Gen Z and the Dream of Homeownership: Is It Attainable?
One of the most interesting takeaways from the survey was that despite the well-known obstacles in the property market, 70.8% of respondents believe that achieving homeownership by the age of 30 is attainable โ but only with financial assistance, such as government housing schemes or help from family members. This optimism, however, is tempered by the reality of rising property prices and other significant challenges that Gen Z faces.
Top 3 Obstacles Toward Homeownership for Gen Z
Although a majority of Gen Z respondents expressed optimism about homeownership, they also acknowledged the barriers that stand in their way. The biggest hurdle cited by 60.4% of respondents was current property prices, which continue to rise beyond the reach of many young adults.
The second major obstacle, noted by 35.4%, was job instability. With many young people experiencing frequent job changes, contract work, or the gig economy, securing stable employment โ a key factor in obtaining mortgage approval โ is a challenge for many in this age group.
The third challenge, mentioned by 27.1% of respondents, was existing financial commitments and debt, which includes student loans, credit card debt, and other financial responsibilities that make saving for a down payment or securing a mortgage more difficult.
Who Is Ready to Buy and When?
Despite these challenges, Gen Z is determined to buy homes within the next few years. While most respondents are not homeowners yet, the goal of purchasing a home is within their five-year plans. This indicates a strong desire among young adults to establish roots and secure property ownership, even if they are not ready to make the leap immediately.
Interestingly, around one-third of respondents stated that they did not have a definite timeline for purchasing a home, possibly due to uncertainty in the market or their financial situations.
Additionally, 18.8% of renters actively searching for properties to buy shows that those living independently are more likely to prioritize homeownership compared to 10.3% of respondents who are currently living with their families.
In terms of budget, 72.4% of respondents indicated that their ideal property price range would be between RM300,000 and RM500,000, which aligns with the pricing of many new high-rise developments in urban areas.
New Developments, Location, and Amenities: What Gen Z Wants
When it comes to property preferences, Gen Z is clear about one thing: convenience is key. The majority of respondents emphasized the importance of easy access to amenities, such as grocery stores, restaurants, pharmacies, and public transportation. This focus on convenience reflects Gen Z’s desire for an easy, efficient lifestyle, where everyday tasks can be accomplished without much hassle.
Moreover, proximity to work is a significant factor for this age group, with many respondents preferring a short commute to their workplaces rather than living near their family homes. This highlights the growing trend of young people seeking independence and prioritizing work-life balance when selecting their future homes.
Another notable finding is that 80% of respondents who are currently renting or living with their families expressed a preference for new developments over subsale or auction properties. This preference is likely due to the perceived modernity, facilities, and lower maintenance concerns associated with new projects.
The Preference for Landed Properties Over High-Rise Living
Despite the increasing number of high-rise developments aimed at young homebuyers in Malaysia’s urban areas, landed properties remain the ultimate dream for most Gen Z individuals. The appeal of space, privacy, and a tangible sense of ownership that comes with a landed home outweighs the conveniences of vertical living for this demographic.
The survey findings suggest that while Gen Z recognizes the practicality of high-rise living in urban areas, especially with the abundance of new developments, their aspirations are geared toward more traditional homes with backyards and privacy.
However, the reality of property affordability means that many may have to settle for high-rise living in the short term, while holding on to the long-term goal of eventually purchasing a landed property.
Conclusion: Gen Zโs Balancing Act Between Aspirations and Reality
As Malaysiaโs property market continues to evolve, itโs clear that Gen Z homebuyers have their own unique preferences and challenges. While the allure of landed properties remains strong, many young Malaysians recognize that their immediate path to homeownership may involve purchasing a high-rise unit in an urban area.
Financial assistance, job stability, and affordability are all key factors that will determine how quickly Gen Z can turn their homeownership dreams into reality. With many expressing optimism and long-term plans to buy homes, itโs clear that this generation is keen on achieving independence and securing a place to call their own, even if it means navigating some hurdles along the way.
As developers continue to cater to the younger market with high-rise projects, they may also want to take note of Gen Zโs desire for landed properties and consider how to create more affordable, spacious housing options for this growing demographic in the future.
