One big misconception people have about millennials is that they are paycheck spenders and short-term planners. Well contrary to that, a recent survey shows that 43% of Singaporean millennials expect to own more than one property in the future. This shows that millennials are serious when it comes to their investments and they tend to go after competitive mortgage rates. They are, in no doubt, a significant group capable of moving the property market to a whole new level.
As a home seller, it is important to identify what type of properties millennials would look for. What we are seeing now in the property market is a tremendous delay in the construction of BTO flats due to the pandemic. This means that young couples may have to wait up to five years before they obtain the keys to their first marital house depending on where they live. As a result, many young couples are looking at resale flats as a viable option.
Now down to the interesting part. How do Singapore millennials shop for properties? Home sellers need to know the home buying behavior of millennials to be able to improve their properties in a way that will attract millennial homebuyers. So, what are the things that give millennials that wow factor when looking to buy their first home? Continue reading to find out.
Millennials are tech-savvy and most of them are used to a fast-paced way of living. They want to automate their household tasks to make their everyday lives easier. Appliances like dishwashers, washing machines, dryers, heating, and cooling systems, are a must-have for them. If you’re selling an HDB flat, regardless of its size, it can appeal to young home buyers as long as these high-functioning amenities are available.
Houses with smart home solutions are becoming widely popular. 79% of young couples in Singapore would consider living in a house equipped with smart features. Imagine showing the house to a potential buyer and then all of sudden you call out. “Alexa, turn on the light.” Or “Hey Google, please open the blinds up to 50%” (We’re not saying it’s necessary but hey, how cool would it be?)
Millennials tend to do things in their own creative way. They would want a house in which they can envision creating new possibilities. Now that everyone is working from home and are into online hobbies like vlogging and content creation, they want a space they can transform to serve multiple purposes. Such as a fitness gym, studio, study area, workspace, living room, and lounge. When you show a house to a potential buyer, emphasize the functionality and practicality of the interior space.
Millennials want their homes to look new and trendy. Clean minimal spaces are appealing to them. Since these are a young demographic of digital natives, they might have already looked for inspiration photos of what they want their future home to look like.
Although you may not exactly know their interior design taste, dressing the space in a subtle contemporary look is perhaps the safest way to go.
Contemporary interior design is chic and versatile. Millennials love the crisp look of contemporary with a mixture of rustic elements to add warmth. It looks practical, functional, and sophisticated.
Open Plan concept
They’re into a more straightforward approach when it comes to floor plans. A lot of millennials are working young professionals. And because of their busy schedules, they prefer their interior spaces to be open, connected, and transparent; it makes the house flexible and easy to navigate to meet their ever-changing needs. It also makes the property look spacious and contemporary. In addition, an open floor plan gives them the option to configure the space in a way that works for them.
Millennials buy a house because of certain reasons: like finally moving out of their family homes, transferring to a new place or district in hopes of getting new job opportunities, or moving together with their partner, etc.
They want their transition to be smooth and fast so move-in-ready homes would look appealing to them. However, take note that there are also millennials who prefer to spend less on a fixer-upper. Depending on their needs and spending plan, both types of properties may interest them.
Energy Efficient features
Millennials are thorough when it comes to their finances. They want to be able to save as much as they can. And so, they would most likely look for a house with energy-efficient features to at least, lessen their energy costs.
In a hot and humid country like Singapore, it is essential to have great ventilation and excellent air quality to keep the temperature cool. Make sure that your walls are well insulated and your property is equipped with efficient energy systems.
A home that showcases a lifestyle
Millennials’ home buying behavior is setting a new trend in the property industry. They spend most of their time researching on the internet before buying a house, so expect that they already have an idea of what they want in a house and what they don’t. When they decide to view a property in person, an empty house will not likely catch their attention.
Millennials have high expectations and as a home seller, you need to put yourself in their shoes and try to find out how to effectively impress them. Staged listings tend to lure them. If a home is staged so well, they might even make an offer right away.
A recent survey shows that 41% of millennial homebuyers made offers on properties without viewing them first. Therefore, before you open your property for viewing, make sure it is staged properly and beautifully.
A lot of millennials are moving abroad to look for job opportunities, explore new cultures, and improve their quality of living. As we know, Singapore is extremely popular among millennial ex-pats. And when moving to a country – where everything is new and foreign, the location of the house is an important deciding factor when buying a property.
Young home buyers would want to look for the best district to narrow down their hunt for properties. The Millennial generation has been moving away from large cities for years, even before the COVID- 19 pandemic. The tranquil suburbs seem to be a popular choice for many of them.
Millennials’ urban presence may continue to drop as they mature. With everything being accessible online such as food delivery and online shopping, millennials are preferring to stay in a quiet neighborhood that gives them their ideal lifestyle compared to the hustle and bustle of living in crowded districts.
Here’s the bottom line:
Millennials are now ahead of the pack when it comes to property investments. The number of young people buying properties is increasing over time and so home sellers need to get to know the home buying preferences of this young demographic.
So, if you’re planning to sell a house, make the necessary effort to construct, arrange, and stage it so it attracts the new generation of home buyers.