For many years, Filipino millennials have been considered a hard sell. They are well informed but have little spending power. This is the reason they have been under the radar of many brands and marketers. However, the days of millennials being perceived in this way are quickly coming to an end. Recent research shows that millennials will soon comprise a demographic segment that will shape the Philippines’ economic future, including the real estate industry.
With this new interest for millennial home-buyers, Lamudi Philippines lists five ways millennials will shape the Philippines’ real estate sector and how the industry can effectively reach out to them.
1. Number and spending power are growing
The number of Filipino millennials is steadily growing – 27 million and counting, according to data from the National Statistics Office. In fact, they now comprise more than a quarter of the country’s total population and more than 50 percent of its workers, which makes them a key demographic with a potentially high spending power. Having a sizable disposable income places millennials in a position to purchase the latest gadgets. Global marketing firm Publicis Manila has dubbed this spending behavior “I want ergo I need.”
2. They are tech-savvy
Filipino millennials now also comprise more than 70 percent of Internet users in the Philippines, according to estimates from comScore. Their income allows them to subscribe to the best Internet connections, making them the prime customers of e-commerce sites that sell everything from shoes and airline tickets to housing loans and insurance.
3. People in this age bracket are now getting married
Although the National Statistical Coordination Board (NSCB) has noted that the number of Filipino couples getting married declined by 1.5 percent between 2001 and 2010, a great number of marriages still take place in the Philippines, with 476,408 registered in 2011. The average ages of brides and grooms is also increasing: 26.1 and 29.1, respectively, in 2010.
But a more intriguing statistic is how Filipino couples are opting to tie the knot. According to the NSCB, almost 44 percent of couples are choosing civil wedding rites compared to 35 percent who are opting church weddings. The latter is almost always costly, which suggests that young Filipinos’ spending patterns and priorities are shifting.
For example, a very successful marketing campaign initiated by a budget condo developer early this year targeted would-be newlyweds to invest in their first property instead, amorously priced Php2,141.4 per week (which stands for 2/14/14 or February 14, 2014).
4. Filipino millennials are not burdened by student debt
Although average income in the Philippines is lower compared to the developed world, college graduates entering the workforce are not burdened by student loan debts. This is thanks to Filipino parents’ strong emphasis on the value of education. While the Philippine government does not provide free tertiary education (save for a few state universities), parents fully cover their children’s college education. This allows Filipino millennials to start working virtually debt-free, increasing their spending power and savings rate.
5. Filipino millennials are happy
Perhaps the most important trait of Filipino millennials is their positive outlook. A 2013 study conducted by media giant Viacom places Filipino millennials’ happiness level at 83 percent – the highest in all countries surveyed. They also tend to always look at the bright side—although half see job security as a challenge, almost 80 percent would take a minimum-wage job rather than not have any job at all.