Bangkok condos face decline as Gen Z opts for renting, shifting focus to Gen Y

[webfact]

 

Bangkok and its surrounding provinces are experiencing a decline in condominium transfers as the younger generation, Gen Z, is opting to rent rather than purchase properties. The ttb analytics centre predicts a 12.5% drop in transfers this year. Experts advise developers to attract Gen Y buyers with high financial readiness.

In their recent analysis, ttb analytics pointed out that condo sales in Bangkok and adjacent provinces are under pressure due to the behavioural differences of Gen Z buyers. Primarily driven by lifestyle preferences and financial limitations, these individuals are leaning towards renting properties instead of buying. As a result, condo transfers are expected to shrink between 8.4% and 12.5%.

 

Property developers are urged to adapt their strategies towards smaller families of the Gen Y class, who are financially sound and eager to make property purchases. This generation offers a potential remedy for slowing condo sales and catering to the changing preferences of homebuyers. During the past year, property transfers hit a record high of 1.05 trillion baht, with 61.9% of the value linked to housing transactions in Bangkok and surrounding areas.

 

by Nattapong Westwood

 

Picture courtesy of Wiroj Sidhisoradej, Freepik

 

Full story: https://thethaiger.com/news/bangkok/bangkok-condos-face-decline-as-gen-z-opts-for-renting-shifting-focus-to-gen-y

 

-- © Copyright Thaiger 2023-06-09

 

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[ezzra]

What a load of <deleted>, Gen Z or Gen X or any other generation, if they have the money or their parents help, they will buy, if not, they  will rent, as simple as that. 

[hotchilli]

2 hours ago, webfact said:

Experts advise developers to attract Gen Y buyers with high financial readiness

Gouging

[OneMoreFarang]

2 hours ago, webfact said:

financial limitations

I love those advertisements with something like "starting price 15m THB"

Yeah, sure. Everybody can afford that. Or maybe not?

 

Or as an alternative, who wants to buy a 25sqm shoe box? 

[jcmj]

Maybe they are finally getting smarter and not willing to spend crazy money on to the overpriced tiny units. Also they can’t add on to the price anymore for extra cash due to the bank’s crackdown on that. 

[BangkokReady]

8 hours ago, webfact said:

Property developers are urged to adapt their strategies towards smaller families of the Gen Y class, who are financially sound and eager to make property purchases.

How exactly do these strategies differ?  How have they specifically been targeting "Gen Z" for condos and what would they do to switch to "Gen Y"?

 

Is there actually a difference, or is this just waffle?

[natway09]

It is not rocket science.

I can rent in the city for 20,000 a month

Same apartment for sale at 6 mil.

25 years to pay it off without any interest, outgoings maintenance.

It just does not add up here to buy.

I have been saying that water finds it's own level in this regard for 30+ years here

but not yet

[bignok]

7 minutes ago, natway09 said:

It is not rocket science.

I can rent in the city for 20,000 a month

Same apartment for sale at 6 mil.

25 years to pay it off without any interest, outgoings maintenance.

It just does not add up here to buy.

I have been saying that water finds it's own level in this regard for 30+ years here

but not yet

I can stay in hotels for 3,500 baht a week. Daily cleaning, pool, gym. If bored move on. Why would you buy unless super cheap? 28 towns in 9 months. Lived the dream.

 

 

[Pouatchee]

me thinks it is a bigger social issue than what it is made out to be here. the redistribution of wealth is not the same as 50 years ago. parents are living longer and holding on to their assets longer, or simply parents are using up their assets to maintain a life style in their old age. the end result is that generations x,y,z have not had the wealth of an inheritance like the baby boomers and preceding generations have had previously. 

Edited June 13, 2023 by Pouatchee

[spidermike007]

Alot of younger folks are bucking the trends. They are not accepting the nonsense and rejecting overpriced real estate. Smart and savvy, in my opinion. In the US, some are not even buying cars, and use public transport or Uber. 

 

Questioning tradition is a healthy thing. Developers building endlessly is just dumb, mindless business. 

[JonnyF]

55 minutes ago, spidermike007 said:

Alot of younger folks are bucking the trends. They are not accepting the nonsense and rejecting overpriced real estate. Smart and savvy, in my opinion.

Not really that smart and savvy. The condos are still being sold, they are just being sold to wealthier people who then rent them out, using the rent they receive from the "smart and savvy" renters to pay off the mortgage and ending up with an asset. 

 

The "smart and savvy" renters on the other hand, still have nothing after 20 years. 

 

The reason they aren't buying is that they can't afford it. Nothing to do with being smart and savvy.

[spidermike007]

6 hours ago, JonnyF said:

Not really that smart and savvy. The condos are still being sold, they are just being sold to wealthier people who then rent them out, using the rent they receive from the "smart and savvy" renters to pay off the mortgage and ending up with an asset. 

 

The "smart and savvy" renters on the other hand, still have nothing after 20 years. 

 

The reason they aren't buying is that they can't afford it. Nothing to do with being smart and savvy.

You hit upon a good point. A minority of people these days can afford to buy, anywhere in the world. Real estate appreciation and inflation has dramatically outpaced the rise of wages.