By Joseph Wong

Where a person chooses to live is more than just a matter of address; it is a reflection of that individual’s lifestyle, priorities and stage in life. In Malaysia’s dynamic property market, a new analysis of over 127,000 property transactions reveals a clear generational divide that is set to reshape the nation's housing landscape. 

While a vast majority of the youngest homebuyers are choosing condos and apartments, older generations continue to prefer the space and privacy of landed homes. However, a closer look at the data shows this trend is not just generational but a reflection of a life-stage journey that every Malaysian homebuyer takes.

The data highlights a compelling shift in preferences, particularly among the youngest generation of homebuyers. According to Juwai IQI co-founder and group chief executive officer Kashif Ansari, over four out of five Generation Z (Gen Z) buyers are choosing condos. "Gen Z are buying into the skyline while Millennials and Gen X keep their feet on the ground," he noted.

This stark preference for vertical living is far higher than for any other generation. Gen Z, born between 1997 and 2012, represents a massive demographic of nearly nine million people. Their homebuying choices today will significantly influence market demand for the next two decades. For this demographic, the decision is a logical one. Many are first-time buyers who prioritise affordability, urban convenience and a vibrant lifestyle. Condos are often the most accessible entry point into the market, offering amenities like gyms, swimming pools and robust security, which are highly valued by young people. Living in a high-rise also allows them to reside close to their workplaces, public transport networks and social hubs, aligning perfectly with an urban-centric lifestyle.

This trend is not just limited to the young. At the other end of the age spectrum, the oldest generations also show a strong preference for units. The data reveals that 93% of the Builders generation (those born before 1946) purchase units. Similarly, the Boomers (born between 1946 and 1964) have a strong tendency to buy units, with 77% of their transactions being for high-rise homes. This trend is driven by a desire to downsize and simplify. As they age, these buyers seek homes that are easier to maintain and offer the convenience of centralised facilities and security.

Landed homes remain as cornerstones

While units are gaining traction, landed homes remain the cornerstone of the Malaysian property market. The generations most likely to buy landed homes are Millennials (born between 1981 and 1996) and Generation X (born between 1965 and 1980). These generations are often at a stage in life where they are raising young or growing families, making the space, privacy and private outdoor areas of a terrace or detached house highly desirable.

According to data from the National Property Information Centre (Napic), landed homes still make up the majority of Malaysia's housing stock (69%) and account for an even larger share of overall transactions (79%). This highlights the enduring appeal of these properties. For many families, a landed home is not their first purchase but rather a second or third home, acquired after they have established their careers and built up sufficient savings. The purchase of a landed home is often seen as a significant life milestone, symbolising stability and success.

Despite the rising popularity of condos among younger buyers, the market for landed homes remains robust. This is because these properties cater to a specific and crucial life stage, meeting the deep-seated desire for more room to grow, play and live.

The lifecycle of a homeowner

The data, when viewed through the lens of a person's entire life, tells a powerful story. Instead of a simple generational divide, it illustrates the predictable lifecycle of a Malaysian homeowner.

• First home (young adulthood): For Gen Z and young Millennials, the first property purchase is typically an affordable high-rise unit. This decision is driven by budget constraints and the need for a home that fits an active, urban lifestyle.
• Family home (midlife): As these young buyers start families, they will seek to upgrade to a larger landed home to accommodate their growing needs. This is the stage where the appeal of a private garden and extra space becomes paramount. Landed homes are not just buildings; they are spaces for a family to thrive.
• Retirement home: Once the children have grown up and moved out, the cycle often completes with a decision to downsize. The older generations, like the Boomers and Builders, sell their larger, high-maintenance landed homes and purchase a more manageable unit. This allows them to live a more convenient, secure and maintenance-free lifestyle in their later years.

This cyclical pattern demonstrates that both condos and landed homes are essential, serving different purposes at different points in a person's life.

Implications for Malaysia’s property future

Understanding these generational and lifecycle trends is crucial for developers and policymakers. The data shows that the demand for units, particularly among the large Gen Z population, is extremely high. This creates a significant market opportunity to provide more high-rise projects that cater to singles, couples and young families. Simultaneously, developers must continue to build and innovate within the landed home segment to meet the needs of growing families and wealthier buyers.

The mismatch between high demand for units and a relatively lower supply compared to landed properties presents an opportunity for the market to adjust. By creating a diverse and balanced portfolio of both high-rise and landed homes, developers can ensure that there is a suitable home for every life stage and every generation. Policymakers must also support both markets to foster a healthy, sustainable, and equitable housing ecosystem.

Every generation has its preferences, and by recognising and responding to them, Malaysia can continue to provide homes that meet the evolving needs of all its people.

This news was first published in StarBiz 7.

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