Asia’s millennial investors prefer property and cash, just like their parents, says Manulife survey

Millennial investors in Asia are more willing than their parents to borrow money for spending, but in terms of investment their behaviour is similar to the older generation in that they invest mainly in property and like to hold cash, according to a survey by Manulife Asset Management.

The survey of eight Asian markets – Hong Kong, China, Singapore, Indonesia, Philippines, Malaysia, Thailand and Taiwan – drew 4,000 respondents, including 1,400 millennials, and was conducted during September and October last year.

Property and cash are the major investments undertaken by the 18 to 34 year old group of millennials when planning their retirement, which means their investment decisions aren’t that different from their parents, according Michael Dommermuth, head of wealth and asset management, Asia region, for Manulife Asset Management.

“Millennial investors grew up in an era where they witnessed their parents having earned a lot from their property. It is only natural that they follow the same pattern,” Dommermuth said in an interview with the South China Morning Post.

The survey showed that 51 per cent of millennial investors across Asia want to buy property in their local market in the short term, higher than 57 per cent for investors of all ages. Among the different markets, Indonesia ranked top with 82 per cent of millennial investors wanting to buy property, followed by Taiwan with 65 per cent, Philippines at 59 per cent, Hong Kong at 53 per cent and mainland China at 44 per cent.

Dommermuth said millennial investors need to be aware that Asian property markets in the following years may not repeat the same high growth of the past decade.