Young gen as new market movers

As the COVID-19 pandemic compelled most of us to stay at home, we found ourselves channeling more of our time, energy and resources to other efforts.

Take the case of the Gen Z or those born from 1997 and 2015. This so-called Digital Native generation, whose oldest would be 24 years old today, found themselves turning to different online platforms for study or work, entertainment, shopping, dining, among other things. So is the case with the Millennials or those born between 1981 and 1996. This generation, whose age range would be between 25 and 40, had more time to take a step back and browse online— some becoming a chef, an interior designer aka home buddy, a plantito or a plantita.

Gen Z, in particular, is more open about setting investment goals, saving up for it and setting a specific period to reach them

SMART INVESTMENTS

But what is even more interesting is that the tech-savvy Gen Z and the younger Millennials also found themselves drawn to smart investments such as real estate.

This is particularly true for those who were fortunate enough to keep their jobs and are able to work in the safety and comfort of their homes, as well as for those who were able to save since the pandemic restricted the travels and spending.

I think it’s really a smart move for these generations to explore the different possibilities and investment options in real estate, which has been proven to be lucrative, relatively safe and resilient.

BEHAVIOR

Based on what we’ve seen with our clients at City Sky Link, these generations are smart. They find time to do research, ask the right questions, and be aware of the different factors that make for a sound investment. What’s good is that they are also aware of how the location of a property will spell the difference between a good and a bad investment.

For these generations, the cost or the monthly amortization is not their only concern. Their primary considerations are still location, accessibility and capital appreciation of the property. At times, the decision can be influenced by the parents as they have already experienced first hand the benefits of real estate investment and capital appreciation.

All these have allowed our buyers—even first-time investors—to become knowledgeable and emotionally ready to make that big-ticket purchase.

What we’ve observed is that the main purpose of their purchase is not for personal use. It’s either to generate passive income by renting it out or to benefit from capital appreciation by re-selling the property when prices have increased.

Investing in real estate is capital intensive. Those that have enough savings or are confident in their cash flows can readily purchase by themselves. But what we have also seen others do is that they encourage two or three of their closest friends or kin to share the cost and become co-owners of the property.

Most of our customers at CitySkyLink also prefer buying or investing in condominium units like those by Avida Land and Amaia Land since these are easier to maintain and, considering their locations, can offer high potential for rental once this pandemic is over. It also helps that these two developers are backed by property giant Ayala Land, which ensures you of quality and value for your money.

Gen Z, in particular, is more open about setting investment goals, saving up for it and setting a specific period to reach them. They may be young, but they know exactly what they want, and they are more than driven to achieve their goals at the right time.

The author is the founder of CitySkyLink Realty Corp., a premier real estate services firm offering lots, pre-selling and ready-for-occupancy condominium units, as well as rental properties from the country’s top property developers.