TerraBKK has revealed the results of a survey on the housing preferences of Generation Y in Bangkok and its surrounding areas, indicating that most wish to buy single-family homes priced at 1-2 million baht. This contrasts with their actual purchasing power, leading to a prediction that this year, townhomes priced at 1.2-2.3 million baht will be more popular among Gen Y than condominiums in the same price range.

Ms. Sumitra Wongphakdee, Managing Director of TerraBKK.com stated that the survey on Gen Y's behavior and their home search activities on the TerraBKK.com website shows that this year, the market for townhomes priced at 1.2-2.3 million baht will be favored by Gen Y over condominiums in the same price range. This is because most Gen Y individuals prefer residences with private space and do not necessarily need to live in the city, yet still want easy access to urban life.

This year, it is anticipated that several major real estate developers will adjust their strategies and plan to develop more townhome projects in the outskirts of the city, with the townhome market expected to account for about 30% of the total market share.

Regarding the data from Gen Y users searching for second-hand homes and new projects on TerraBKK.com, it was found that over 51% are looking for townhomes priced between 1.5-3 million baht in locations such as Samut Prakan, Ladprao-Bang Kapi, and Chaeng Watthana-Don Mueang. Following that, 34% are searching for single-family homes priced between 3-6.5 million baht in areas like Chatuchak-Prachachuen, Taksin-Thonburi, and Chaeng Watthana-Don Mueang.

However, in addition to adjusting products to meet target groups, creating a brand with a unique identity that is memorable is something that both small and large real estate developers should not overlook and must prioritize.

Dr. Wasupol Treesopakul, Managing Director of U Research Co., Ltd. mentioned that the survey on the behavior and lifestyle of Gen Y individuals aged 25-37, who are entering the job market and starting to have purchasing power for housing, was conducted with a sample of 500 people living in Bangkok and its vicinity. It was found that over 54% of Gen Y do not plan to buy a home in the near future, as most of this group has an income ranging from 18,000-35,000 baht per month and lacks sufficient savings due to high credit card debts and car loans.

Meanwhile, 46% are considering purchasing a home within the next three years, with 57% wanting to buy single-family homes, followed by townhomes at 48.7%, condominiums at 30.7%, and duplex homes at 15.8%.

From the survey, Gen Y can be categorized into four groups:

  • Smart Choice: Planning finances to start a new family, fond of technology.
  • Peace in Mind: Concerned about the future, personal identity is important.
  • WE Oriented: Considerate of social image and family.
  • Quality Seekers: Wealth is a life goal, paying attention to every detail.

The survey on the housing purchasing preferences of Gen Y across these four groups found that the Smart Choice group is the most likely to purchase a home in the next three years as they desire their own residence to start a family and plan for future children. The top three types of homes they are interested in buying are single-family homes at 40%, townhomes at 26%, and condominiums at 17%. Their budget for purchasing a home is primarily in the ranges of 1-2 million baht at 40%, 2-3 million baht at 30%, and 3-5 million baht at 20%.

Additionally, the survey found that over 95% of Gen Y believe that brand reputation influences their decision to purchase a home, with the top three brands they feel best meet Gen Y's needs being Land and Houses, Pruksa, and Sansiri.

As for the media that influence Gen Y's home purchasing decisions, the top five sources include recommendations from close acquaintances at 27%, online media at 19%, offline media at 18%, information from real estate developers at 15%, and television advertisements at 11%.

Information provided by TERRABKK