






{"id":33333,"date":"2023-05-23T13:16:37","date_gmt":"2023-05-23T06:16:37","guid":{"rendered":"https:\/\/www.asiapropertyawards.com\/?p=33333"},"modified":"2023-07-07T16:19:35","modified_gmt":"2023-07-07T09:19:35","slug":"ok-boomers-gen-xers-where-are-they-now-in-their-property-journeys","status":"publish","type":"post","link":"https:\/\/www.asiapropertyawards.com\/en\/ok-boomers-gen-xers-where-are-they-now-in-their-property-journeys\/","title":{"rendered":"Ok, boomers, Gen X\u2019ers: Where are they now in their property journeys?"},"content":{"rendered":"<p>With several countries in Southeast Asia verging on becoming aged societies, catering to the requirements of mature investors will be a key challenge for developers<\/p>\n<figure id=\"attachment_33334\" aria-describedby=\"caption-attachment-33334\" style=\"width: 1000px\" class=\"wp-caption alignnone\"><img decoding=\"async\" class=\"wp-image-33334 size-full\" src=\"https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2023\/05\/shutterstock_339672998.jpg\" alt=\"\" width=\"1000\" height=\"667\" srcset=\"https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2023\/05\/shutterstock_339672998.jpg 1000w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2023\/05\/shutterstock_339672998-400x267.jpg 400w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2023\/05\/shutterstock_339672998-600x400.jpg 600w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2023\/05\/shutterstock_339672998-768x512.jpg 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><figcaption id=\"caption-attachment-33334\" class=\"wp-caption-text\">Boomers and Gen X\u2019ers came of age during the advent of personal computers and other disruptive technologies. TomWang\/Shutterstock<\/figcaption><\/figure>\n<p>With the death of Queen Elizabeth II, King Charles III, one of the world\u2019s most visible baby boomers, inherited a USD25-billion real estate portfolio. Down another generation is Elon Musk, one of the world\u2019s richest men, who had owned a chunk of California housing stock with an estimated worth of nearly USD130 million.<\/p>\n<p>But the Tesla CEO and Britain\u2019s new monarch are unrepresentative of their demographic cohorts\u2019 property journeys, not least in Southeast Asia. While boomers and Generation X fared better in wealth accumulation than millennials and Generation Z, these elder generations lived through unique challenges spanning everything from the Vietnam War to the AIDS pandemic. Now retired or in the later stages of their careers, boomers and Gen X\u2019ers live out family dynamics and medical experiences specific to their timelines.<\/p>\n<p>Developers and governments are primed for a sense of urgency around these generations as several countries in Southeast Asia verge on becoming aged societies. Thirty-three percent of the Thailand population would be aged 60 and over by 2040; in Malaysia, that proportion would be 15 percent by 2030. Citizens aged 65 and above now make up 18.4 percent of Singapore\u2019s population.<\/p>\n<p>Born from 1946 to 1964, boomers benefited from the prosperous economic growth cycle after World War II. Generation X, born in the succeeding years until 1980, actually saw the highest wealth increase among all cohorts during the pandemic. Its oldest members will turn 60 by 2025.<\/p>\n<figure id=\"attachment_33336\" aria-describedby=\"caption-attachment-33336\" style=\"width: 1000px\" class=\"wp-caption alignnone\"><img decoding=\"async\" class=\"size-full wp-image-33336\" src=\"https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2023\/05\/shutterstock_219946507.jpg\" alt=\"\" width=\"1000\" height=\"664\" srcset=\"https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2023\/05\/shutterstock_219946507.jpg 1000w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2023\/05\/shutterstock_219946507-400x266.jpg 400w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2023\/05\/shutterstock_219946507-600x398.jpg 600w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2023\/05\/shutterstock_219946507-768x510.jpg 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><figcaption id=\"caption-attachment-33336\" class=\"wp-caption-text\">With its friendly climate and proximity to Bangkok, Hua Hin has long been a favoured destination in Thailand for retirees. Kaban-Sila\/Shutterstock<\/figcaption><\/figure>\n<p>\u201cIf there\u2019s one commonality among baby boomers and Generation X, I would say that the health costs are going to be higher for them,\u201d says Dr. Nai Jia Lee, head of real estate intelligence at the leading proptech company PropertyGuru. \u201cIf the state has to provide a certain level of healthcare, it would be a drain on their resources.&#8221;<\/p>\n<p>From Apple\u2019s Steve Jobs to Tencent Holdings\u2019 Ma Huateng, boomers and Gen X\u2019ers came of age during\u2014and even helped bring about\u2014the advent of personal computers and other disruptive technologies, creating enormous wealth for entire generations.<\/p>\n<p>The current landscape reflects how the economies of Southeast Asia have been good for wealth accumulation. Southeast Asia\u2019s high-net-worth individuals (HNWI), defined as those with a net worth of over USD1 million, are expected to almost triple by the middle of the decade from 2016, according to the Wealth Report by the consultancy Knight Frank. The number of ultra-high-net-worth individuals (UHNWI), those worth USD30 million or more, hit 4,206 in 2021, up from 3,874 the year before, in Singapore alone.<\/p>\n<p>\u201cWealth preservation will continue to factor highly for buyers in each generation,\u201d says Christine Li, head of research at Knight Frank Asia-Pacific. \u201cAnd often, properties with strong wealth preservation qualities are well located in areas that cater to what buyers from each demographic cohort are looking for in a home.\u201d<\/p>\n<p><a href=\"https:\/\/www.asiapropertyawards.com\/en\/where-gen-z-and-millennials-stand-now-on-the-property-ladder\/\" target=\"_blank\" rel=\"noopener\"><strong>Related: Where Gen Z and millennials stand now on the property ladder<\/strong><\/a><\/p>\n<p>The retirement community model that has worked well for boomers in western nations still has not gone mainstream in Southeast Asia, despite the best efforts of developers.<\/p>\n<p>\u201cCulturally, strong familial ties and expectations of filial piety mean the concept of retirement communities remains a niche sector in the region currently, although with scope to develop,\u201d adds Li.<\/p>\n<p>The idea of retirement communities could still gain traction with declining marriages and births in the region. Retirement homes are likely to appeal to Generation X, a cohort nicknamed \u201cbaby busters\u201d because of the decline in birth rates following the baby boom. Such homes may not be a hard sell to the cohort sometimes dubbed the \u201cLatchkey Generation\u201d for their precocious levels of independence as children.<\/p>\n<blockquote><p>Ageing in place is a healthy concept, but that means having the necessary services and medical facilities to support this goal<\/p><\/blockquote>\n<p>As adults, Gen X\u2019ers tend to delay or completely swear off marriages: a pattern being picked up by millennials.<\/p>\n<p>\u201cBut the problem is many property seekers do not want to go into something that has a stigma,\u201d says Lee. \u201cDevelopers realise that when they incorporate some of the elder-friendly types of elements into housing, people may feel that this is going to be just a development for old people. So, they will shun that development.\u201d<\/p>\n<p>To many Southeast Asian seniors and retirees, the concept of ageing in place presents a better alternative to retirement resorts built far from their support systems. In-place ageing simply means growing old in a location of one\u2019s preference and remaining part of that community for as long as possible, skirting expensive institutional care in the process.<\/p>\n<figure id=\"attachment_33338\" aria-describedby=\"caption-attachment-33338\" style=\"width: 1800px\" class=\"wp-caption alignnone\"><img decoding=\"async\" class=\"size-full wp-image-33338\" src=\"https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2023\/05\/2Bedroom_Living-area.jpg\" alt=\"\" width=\"1800\" height=\"1350\" srcset=\"https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2023\/05\/2Bedroom_Living-area.jpg 1800w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2023\/05\/2Bedroom_Living-area-400x300.jpg 400w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2023\/05\/2Bedroom_Living-area-600x450.jpg 600w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2023\/05\/2Bedroom_Living-area-768x576.jpg 768w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2023\/05\/2Bedroom_Living-area-1536x1152.jpg 1536w\" sizes=\"(max-width: 1800px) 100vw, 1800px\" \/><figcaption id=\"caption-attachment-33338\" class=\"wp-caption-text\">Mulberry Grove Sukhumvit in Bangkok has wide corridors and entrances, gently sloping ramps, railings for young and old, and colour-coded areas, among other universal design features<\/figcaption><\/figure>\n<p>\u201cAgeing in place works and is more aligned with the Asian context,\u201d Lee says.<\/p>\n<p>\u201cIt is a healthy concept,\u201d concurs Victoria Garrett, head of residential for Knight Frank Asia-Pacific, \u201cbut that means having the necessary services and medical facilities to support this goal. Property developers should remain cognisant of this trend and focus on intergenerational models to tap opportunities that could emerge from such demographic shifts.\u201d<\/p>\n<p>For ageing in place to be effective, governments need to rationalise their efforts around the most vulnerable segments of a greying society. At their best, the elderly can still be autonomous and sprightly, suitable candidates for active living communities\u2014or incapacitated at their worst, shoos-in for residential care.<\/p>\n<p>\u201cThe government has to create a financial ecosystem to help them, and that must be in place so that they don\u2019t overstrain the healthcare sector,\u201d says Lee. \u201cOtherwise, if everyone doesn\u2019t have that kind of social support, then you\u2019ll make things very expensive and go out of hand.\u201d<\/p>\n<p>Singapore has given its neighbours a glimpse of what can be done with the prudent use of state resources. The Housing &amp; Development Board (HDB) has launched its first assisted living public flats, featuring 24-hour emergency monitoring and accessibility features, for buyers aged 65 and above who want to live on their own. HDB also offers two-room flexi flats with lease terms as short as 15 years, in keeping with the property seekers\u2019 reduced life expectancy.<\/p>\n<p>The Singaporean government has also started such subsidies as the Silver Housing Bonus, supplementing the retirement incomes of elderly households when they rightsize their flats. Homeowners in their twilight years can also access the equity in their properties via reverse mortgages.<\/p>\n<figure id=\"attachment_33340\" aria-describedby=\"caption-attachment-33340\" style=\"width: 2560px\" class=\"wp-caption alignnone\"><img decoding=\"async\" class=\"size-full wp-image-33340\" src=\"https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2023\/05\/Parc-Clematis_Club-House-scaled.jpg\" alt=\"\" width=\"2560\" height=\"1600\" srcset=\"https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2023\/05\/Parc-Clematis_Club-House-scaled.jpg 2560w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2023\/05\/Parc-Clematis_Club-House-400x250.jpg 400w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2023\/05\/Parc-Clematis_Club-House-600x375.jpg 600w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2023\/05\/Parc-Clematis_Club-House-768x480.jpg 768w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2023\/05\/Parc-Clematis_Club-House-1536x960.jpg 1536w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2023\/05\/Parc-Clematis_Club-House-2048x1280.jpg 2048w\" sizes=\"(max-width: 2560px) 100vw, 2560px\" \/><figcaption id=\"caption-attachment-33340\" class=\"wp-caption-text\">Parc Clematis offers a wide array of unit types for Singapore property seekers, ranging from young families to multi-generational households<\/figcaption><\/figure>\n<p>Inclusivity is as important as affordability; the property must play to the wider community. As younger generations forge housing pathways, experts advise empty nesters to rightsize in locations that hold the best value.<\/p>\n<p>\u201cIf they are having the home for owner-occupation, they should be in places where they\u2019re close to their kids and friends, where their social compact is, and where they have easy access to healthcare and different amenities,\u201d says Lee. \u201cThis is very key because movement over time will be constrained.\u201d<\/p>\n<p>At times, the pull of nostalgia draws Generation X from large built spaces to neighbourhoods that hold a lot of memories for them. \u201cThey want to be where they were when they grew up,\u201d says Lee. \u201cThat\u2019s why we see a lot of gentrification happening.\u201d<\/p>\n<p>Not all Southeast Asian countries share Singapore\u2019s foresight in protecting vulnerable age groups. Where Singaporeans reap the benefits of the central provident fund later in life, many boomers and Gen X\u2019ers elsewhere endure insufficient retirement plans, if at all.<\/p>\n<p><a href=\"https:\/\/www.asiarealestatesummit.com\/the-workplace-reimagined-in-singapore\/\" target=\"_blank\" rel=\"noopener\"><strong>Related: The workplace reimagined in Singapore<\/strong><\/a><\/p>\n<p>Boomers can generally depend on the financial support of their children later in life. The reverse is also true for the many Gen X\u2019ers who decide to remain single. \u201cIf the proportion of singles is going to be larger, then that would be an issue because they would not be supported by their kids,\u201d says Lee. \u201cThere must be a financing ecosystem to support them.\u201d<\/p>\n<p>But retirement itself is a concept in progress. Today, Generation X and succeeding cohorts are finding their work lives being extended. Since July, the retirement age in Singapore has been raised to 63, gradually rising to 65 by 2030.<\/p>\n<figure id=\"attachment_33342\" aria-describedby=\"caption-attachment-33342\" style=\"width: 2560px\" class=\"wp-caption alignnone\"><img decoding=\"async\" class=\"size-full wp-image-33342\" src=\"https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2023\/05\/Aspen_Sky-Villa-1-scaled.jpg\" alt=\"\" width=\"2560\" height=\"1348\" srcset=\"https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2023\/05\/Aspen_Sky-Villa-1-scaled.jpg 2560w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2023\/05\/Aspen_Sky-Villa-1-400x211.jpg 400w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2023\/05\/Aspen_Sky-Villa-1-600x316.jpg 600w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2023\/05\/Aspen_Sky-Villa-1-768x404.jpg 768w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2023\/05\/Aspen_Sky-Villa-1-1536x809.jpg 1536w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2023\/05\/Aspen_Sky-Villa-1-2048x1078.jpg 2048w\" sizes=\"(max-width: 2560px) 100vw, 2560px\" \/><figcaption id=\"caption-attachment-33342\" class=\"wp-caption-text\">With its many senior-friendly facilities and green spaces, The Aspen Tree at The Forestias adapts an international model of holistic lifetime care for the 50-and-over set in Thailand<\/figcaption><\/figure>\n<p>It stands to reason that the housing solutions shunned today may well be tomorrow\u2019s norms. \u201cAll these things don\u2019t work out because of the social context that the family is fundamental,\u201d says Lee. \u201cNow that fundamental may change; it weakens every generation. It\u2019s strong with the baby boomers, slightly weaker with Gen X, and even weaker with Gen Y as they transcend boundaries. The time after Gen Z is when things probably change.\u201d<\/p>\n<p>Although the increase in property prices and current tax laws may be prohibitive for first-time buyers, younger cohorts can tap the wealth accumulated by boomers and Generation X, plus the outstanding GDP growth generated across Southeast Asia in general.<\/p>\n<p>\u201cThese next generations will be keen to manage and continually grow these inheritances, and property purchases will reflect such goals,\u201d says Garrett. \u201cProperties in core locations will be preferred and with the younger cohorts\u2019 more global view, these will also span across the globe.\u201d<\/p>\n<p><em>This article was originally published on\u00a0<a href=\"https:\/\/www.asiarealestatesummit.com\/newsroom\/\" target=\"_blank\" rel=\"noopener\">asiarealestatesummit.com<\/a>. Write to our editors at\u00a0<a href=\"mailto:propertyreport@propertyguru.com\" target=\"_blank\" rel=\"nofollow noopener\">propertyreport@propertyguru.com<\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Ageing societies in Southeast Asia mean that catering to the requirements of mature investors will be a key challenge for developers<\/p>\n","protected":false},"author":9,"featured_media":33334,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[81,97],"tags":[3446,3447,3002,638],"class_list":["post-33333","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-in-depth","category-magazine","tag-boomers","tag-gen-x","tag-generation","tag-real-estate","news_country-asia-pacific","news_author-al-gerard-de-la-cruz"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Ok, boomers, Gen X\u2019ers: Where are they now in their property journeys? 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