KUALA LUMPUR: Trends are showing that millennials who are just starting their careers opt for alternative townships on the outskirt of big city due to affordability concern.
Savills head of world research, Yolande Barnes said the new township must be well-connected to the big city with sufficient amenities and most importantly equipped with reliable infrastructure for daily commuting.
"We see more new neighbourhoods opening and located on the outskirt of big cities. This movement is a result of millennials searching for housing," she told NST Business.
She said the dispersal is currently happening due to the millennials inability to compete in the major city housing market, prompting them to live in a new township.
Savills South East Asia chief executive officer, Christopher Marriott said millennials prefer to live in a ‘liveable’ community at an affordable rate.
“They can’t live in the city centre due to higher cost of living. You will see they live in areas that have accessibility for transport, retail, food & beverages in a smaller community,” he said, adding that a high speed internet access is also important.
Marriott said developers’ properties project should meet everybody’s distinctive lifestyle across different segments of the community.
“Developers have to re-think of how every segment of the population wants to live. Millennials are not only the occupiers or buyers but also other full range of customers segment,” he added.
Savills Malaysia executive chairman Datuk Christopher Boyd said the new township development for millennials should be acknowledged, citing that it is an important component for the neighbourhood.
“However, the community must be linked by public transport. It should be a place for people to congregate in a secure area,” he said.
Boyd said the millennial township has begun in Malaysia, although the space can be smallish but the cost can be relatively affordable, allowing residents to enjoy the public amenities.
Axis REIT Managers Bhd head of investment Siva Shanker said developers need to have bigger spread of demographic segments to fill their township.
“They need other segments to occupy their new property project, as millennial may buy a fraction of the township,” he said.
As land prices in the city gets more expensive, he said property prices will also become expensive that makes demands to grow beyond outskirt from the city centre and sub-urban areas.
“As these areas become more expensive, millennials don’t have many choices but need to be very careful to pick – that’s where the connectivity comes in a new (township).
“Millennials want a township that is self-reliant for them to live, work and play. Everything needs to be available in that particular township such as schools, shopping mall, hospitals, and facilities and most importantly a well-connected infrastructure as well as public transportation,” he said.
Siva said better infrastructure, facilities and connectivity are the important key points for new buyers to consider before deciding on a property location.