Property seeking activity on Lamudi in the first half of 2022 revealed that about 20% of all pageviews for listings on the site came from users aged 18 to 24. Individuals in this age group — the earlier half of those born between 1997 and 2012 — belong to Generation Z (Gen Z), and are the youngest cohort of buyers and renters (and in some cases, sellers!) to enter the real estate market.
As their buying power and interest in the property market grows, several developers, brokers, and lessors have rethought and revamped their strategies to accommodate Gen Z preferences.
Businesses put digitization at the forefront of marketing
Optimizing platforms and technology available is the standard in 2022, and must be honed when catering to the digitally native Gen Z market. Businesses know well to create content that captures their interest in an increasingly competitive attention economy. From the use of entertaining, short-form content like reels to making comprehensive yet easily digestible infographic carousels, pushing mobile-friendly and visually compelling products is essential to reaching a Gen Z audience.
Financially savvy, entrepreneurial and digitally literate from a young age, the Gen Z do extensive research when identifying trustworthy and quality products — even more so for larger purchases such as real estate. According to Brian Uy, Managing Partner of Seanderg Realty and Development Corporation, members of Gen Z prefer to do most of their property seeking online and see the property [in person] only when they’re sure they like it.
“We believe that the [digital-first] strategy is going to stay, especially when the next generation of purchasers is the Gen Z,” said Uy in a panel discussion during Lamudi’s The Outlook 2022: Philippine Real Estate Conference on August 31, 2022.
Gen Z values ethics and individualism in design
Research by consulting firm McKinsey in 2018 found that Gen Zers are practical and strongly value individual expression. This behavior influences their consumption patterns as well, as they make purchasing decisions that align with their ethics and individual identity.
A 2021 Bloomberg study surveying students across Asia, Europe and the Middle East found that the majority of the Gen Z students polled selected ‘companies with a purpose’ as a main driver for their investment decisions, and identified sustainable investing as the trend with the biggest investment potential.
In the real estate market, the push for more quality designs, green-certified properties and sustainable initiatives is a welcome development in efforts to attract Gen Z property seekers. Enabling Gen Z’s freedom in terms of decorating their own space in rentals, for example, is one way that lessors can attract the young market. During the conference’s The Home as a Relaxation Destination track, panelist Ed del Valle, Sales Support Operation Head of Avida Land, found a trend in growing demand for moderately furnished rentals as seekers appear to value the element of versatility and personal choice.
Efforts towards making more sustainable residential developments are another important consideration for Gen Zers. Green certifications, smart designs and brand environmental, social, and governance (ESG) commitments are some considerations that Gen Zers make when choosing a real estate development.
“Technology will play a big part for today’s generation [of property seekers]; but more than that, they are also after sustainability. Features that are energy-efficient, that will care for nature… anything that is sustainable is something interesting to this market,” said Czarina Lugue, Senior Business Development Director at RLC Residences.
For more information on Lamudi’s The Outlook 2022: Philippine Real Estate Conference, visit https://bit.ly/TheOutlook2022.
Main photo via depositphotos