1. Evolving Property Buying Behaviors Company Proprietary and Confidential National Real Estate Convention Dr Gerard Kho, Futurist, DehincAsia

2.  What are the purchasing behaviors today?  What drives buyer behaviors?  What to watch out for in anticipating the changes in changing consumer patterns?  How do we more effectively reach & influence these buyers? Food for Thought…

3. Where Data Comes From Central Agencies UNITED NATIONS

4. Source: PropertyGuru, Research data of Google research 2013. 7-step Purchasing Process in MY

5. 63% are Investors & 1 st Time Buyers Source: IPSOS 2013 & 2014 Base: 630 Malaysian property seekers

6. Understanding the Drivers that Could Impact Buying Process Population growth Migration patterns Urbanization Labour workforce participation Personal income Fertility rates Household sizes Life expectancy Literacy Communications Investment into Communications Productivity Energy Transport Infrastructure R&D Investments

7. Source: PropertyGuru & Research data of Google research 2013. Today’s Buyer Behavior: Price & Location Key Concern NOT Size or Type of Property

8. Price: Decreasing Savings Level Since 2008….. Savings is now less than 30% of GDP dropping after 2008 and has not recovered since then Source: World Bank Savings as a percentage of GDP (%)

9. Household Consumption Rising Since 2008… Consumption has escalated steadily since 2008 primarily due to housing costs increased post 2008 Household Final Consumption Expenditure (% of GDP) Source: World Bank

10. Consumption is Anticipated to Increase with GST? GST will lead on to increased costs of properties and general consumption Source: International Futures

11. Good News: Everyone’s Income Is Set to Rise Good news is that income is anticipated to increase in an accelerated manner Source: International Futures

12. Excess Savings Should Still Be Increasing? Does this mean that savings could be negatively impacted because of increased burden from GST? Source: International Futures

13. Population (millions) 198020102050 SE Asia359593759 Cambodia6.514.119 Indonesia150.8239.9293.5 Malaysia13.828.443.5 Myanmar32.94855.3 Philippines47.193.3154.9 Singapore2.45.16.1 Thailand47.569.171 Vietnam5487.8104 Source: United Nations, World Population Prospects Location: Population + Urbanisation Growth Urbanisation (%)197520002050 SE Asia23.338.265.4 Cambodia4.416.943.8 Indonesia19.34265.9 Malaysia37.76287.9 Myanmar23.927.862.9 Philippines35.64869.4 Singapore100 Thailand23.831.160 VietNam14.624.354.9 +160m SEA people in 40 years…+22m SEA urbanites in 40 years…

14. 2015 – 2020: 3m Moving to Urban Areas Good news is 3m people anticipated to move to urban centres (same as what’s happened in the previous 5 years) Source: International Futures

15. But Urbanization to Reach Saturation Point in 15yrs However, the urbanization would start to slow down in about a decade, could this impact demand? Source: International Futures

16. Moving is No Big Drama, so could Open Up New Urban Centres

17. Mobility Could Fuel Migration and Extension of Boundaries of Cities………. Source: International Futures

18. Source: PropertyGuru & Research data of Google research 2013. Today’s Buyer Behavior: Size or Type of Property NOT a Major Concern

19. Property Size: Population Will Increase But at Slower Pace However, because of the slower rate of population increase compared to previous decade could mean demand for properties could be impacted Source: International Futures

20. And Population Growth will Hit a Plateau by 2050 Impact of slowing population will be felt even earlier – in next 20 years time Source: International Futures

21. Birth Rates Drops but Stabilises fr 2040 onwards More people choose to have less children Source: International Futures

22. Less Infants in Absolute Numbers Source: International Futures

23. Does the Future Buyers Really Want/Afford More Space/ What Would this Mean for Future Demand?

24. Good news: Labour Force Continue Growing so Purchasing Capacity Could Still Grow Size of work force increase until 2045 and then starts to dwindle Source: International Futures

25. Good News: 1.2m Joining Workforce in Next 5 years Last 5 years, 1.2m joined the workforce (the same growth as last 5yrs). Demand thus should remain strong. Females contribute 3% every decade last 2 decades. Source: International Futures

26. Female Participation in Workforce Biggest Growth, so Would Women Affect the Types of Properties Demanded Source: International Futures

27. Reaching/Influencing the Buyers: Malaysians Allocate 2- 3 months to Search & View Source: PropertyGuru & Research data of Google research 2013.

28. Online Is Primary Source For Property 78% uses Property Portal as key source of information 97% of property seekers search for property online In Singapore: 95% of property seekers search for property online; 72% uses Property Portal as key source of information In Thailand: 97% of property seekers search for property online; 62% uses Property Portal as key source of information In Indonesia: 95% of property seekers search for property online; 74% uses Property Portal as key source of information Source: IPSOS

29. Global Online Landscape

30. Internet Penetration Growing Rapidly Source: World Bank

31. Literacy is no Longer an Issue…. Source: International Futures

32. Better addressing the needs of property seekers during these info search and consideration stages, help drive conversions Source: IPSOS 2013 & 2014 Base: 630 Malaysian property seekers

33. Internet Speed in Asia Huge room for improvement…. Imagine when our internet speed is like HK!

34. Investment into ICT Sector as % of GDP MY is focused in this area…… Source: International Futures

35. Influence Buyers Where They can be Engaged….

36. Not Forgetting that the >65yrs Population Keeps Growing Source: International Futures

37. Don’t Forget the Seniors……

38. Source: Google “Our Mobile Planet” Almost ¼ of Mobile Users Search For Property

39. Which Part of the House Is Gaining Importance?

40. Infra Investment into Mobile Broadband in Malaysia Highest investment is into Broadband Mobile for the next 15 yrs Source: International Futures

41. Access to Mobile With Broadband Importance of mobiles Source: International Futures

42. Mobile Broadband per 100 Convergence of the new frontier…. Source: International Futures

43. Huge Potential for Growth to Connect with Buyers… Online Consumption Leads Ad Spend Internet as % of total media consumption time 45%42%22%28% Internet ad spend as % of total media ad spend 9%18%4%7% Source: Nielsen, ADMA Digital Marketing Handbook(2014) SINGAPOREAUSTRALIAMALAYSIAINDONESIATHAILAND 60% 52%

44. Company Proprietary and ConfidentialPost-GST The Real Impact on Buyers: Tomorrow’s Trends Today Summary